Cummins Inc. (NYSE:CMI) Downgraded by Zacks Investment Research
Cummins Inc. (NYSE:CMI) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a report released on Wednesday.
According to Zacks, “Annual earnings estimates for Cummins have been going up lately. The company has provided an updated guidance for 2017, expecting revenue growth across all segments. The company is poised to benefit from its innovative products, rising demand for its engines among original equipment manufacturers, cost reduction techniques and improvement in operational efficiency. Cummins is also expanding its presence globally, through acquisitions and joint-ventures. Its shares have also outperformed the Zacks categorized Auto-Tires-Trucks sector over the last six months. However, most of Cummins’ businesses are expected to be under pressure in 2017 due to soft global demand. Supplier concentration and lawsuit filed against the company are other concerns.”
Other analysts have also recently issued reports about the stock. ValuEngine raised shares of Cummins from a “hold” rating to a “buy” rating in a research note on Friday, June 2nd. Credit Suisse Group set a $173.00 price objective on shares of Cummins and gave the stock a “buy” rating in a research note on Monday, March 27th. Barclays PLC upped their price objective on shares of Cummins from $137.00 to $144.00 and gave the stock an “equal weight” rating in a research note on Wednesday, April 19th. Stifel Nicolaus reaffirmed a “hold” rating and set a $155.00 price objective (up from $150.00) on shares of Cummins in a research note on Wednesday, May 3rd. Finally, Jefferies Group LLC reaffirmed a “hold” rating and set a $160.00 price objective (up from $150.00) on shares of Cummins in a research note on Tuesday, May 2nd. One equities research analyst has rated the stock with a sell rating, twelve have given a hold rating and seven have issued a buy rating to the company’s stock. The stock presently has a consensus rating of “Hold” and an average price target of $151.71.
Shares of Cummins (NYSE:CMI) traded up 0.33% during trading on Wednesday, hitting $165.32. The stock had a trading volume of 908,284 shares. Cummins has a one year low of $111.76 and a one year high of $166.84. The stock’s 50-day moving average price is $158.15 and its 200 day moving average price is $150.20. The stock has a market cap of $27.66 billion, a price-to-earnings ratio of 18.95 and a beta of 1.08.
Cummins (NYSE:CMI) last issued its quarterly earnings data on Tuesday, May 2nd. The company reported $2.36 earnings per share for the quarter, topping the Thomson Reuters’ consensus estimate of $1.81 by $0.55. The firm had revenue of $4.59 billion for the quarter, compared to analysts’ expectations of $4.15 billion. Cummins had a net margin of 8.25% and a return on equity of 20.87%. The company’s quarterly revenue was up 6.9% compared to the same quarter last year. During the same period in the prior year, the firm earned $1.87 earnings per share. On average, equities analysts forecast that Cummins will post $7.98 EPS for the current year.
The firm also recently disclosed a quarterly dividend, which will be paid on Friday, September 1st. Investors of record on Friday, August 18th will be issued a $1.08 dividend. This is a positive change from Cummins’s previous quarterly dividend of $1.03. This represents a $4.32 annualized dividend and a yield of 2.61%. The ex-dividend date of this dividend is Wednesday, August 16th. Cummins’s dividend payout ratio is currently 46.96%.
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In related news, CFO Pat Ward sold 14,050 shares of the stock in a transaction that occurred on Monday, June 19th. The shares were sold at an average price of $163.95, for a total value of $2,303,497.50. Following the transaction, the chief financial officer now directly owns 13,395 shares in the company, valued at $2,196,110.25. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, CEO Norman Thomas Linebarger sold 24,000 shares of the stock in a transaction that occurred on Tuesday, May 2nd. The shares were sold at an average price of $163.00, for a total transaction of $3,912,000.00. Following the completion of the transaction, the chief executive officer now owns 24,607 shares in the company, valued at $4,010,941. The disclosure for this sale can be found here. Insiders sold 79,176 shares of company stock worth $12,900,695 over the last 90 days. 0.62% of the stock is currently owned by company insiders.
A number of institutional investors have recently made changes to their positions in the stock. Trust Co. of Toledo NA OH acquired a new position in shares of Cummins during the second quarter valued at $202,000. Creative Planning raised its position in shares of Cummins by 16.0% in the second quarter. Creative Planning now owns 31,173 shares of the company’s stock valued at $5,057,000 after buying an additional 4,292 shares in the last quarter. Trust Co. of Vermont raised its position in shares of Cummins by 7.9% in the second quarter. Trust Co. of Vermont now owns 3,098 shares of the company’s stock valued at $503,000 after buying an additional 228 shares in the last quarter. NEXT Financial Group Inc raised its position in shares of Cummins by 5.0% in the second quarter. NEXT Financial Group Inc now owns 2,093 shares of the company’s stock valued at $340,000 after buying an additional 100 shares in the last quarter. Finally, CHURCHILL MANAGEMENT Corp acquired a new position in shares of Cummins during the second quarter valued at $17,806,000. Institutional investors and hedge funds own 80.02% of the company’s stock.
Cummins Company Profile
Cummins Inc designs, manufactures, distributes and services diesel and natural gas engines and engine-related component products. The Company’s segments include Engine, Distribution, Components and Power Systems. The Engine segment manufactures and markets a range of diesel and natural gas powered engines under the Cummins brand name, as well as certain customer brand names, for the heavy and medium-duty truck, bus, recreational vehicle (RV), light-duty automotive and agricultural markets.
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