Cummins Inc. (NYSE:CMI) Lifted to Buy at Zacks Investment Research
Cummins Inc. (NYSE:CMI) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a report issued on Thursday. The firm presently has a $185.00 price objective on the stock. Zacks Investment Research‘s target price suggests a potential upside of 12.37% from the stock’s current price.
According to Zacks, “Annual earnings estimates for Cummins have been going up lately. For its sustainable growth, the company has decided to make regular investments in partnerships and acquisitions. Working towards its growth plan, it has been focusing on company and partnership acquisitions, which will also help Cummins to increase its presence globally. Also, it has provided an updated guidance for 2017, expecting revenue growth across all segments. Moreover, the company is expected to boost its financial figures from its innovative product launches and shifting to new emission standards in certain economic markets. It is also engaged in share repurchase programs and dividend payouts to improve shareholders’ value. Its shares have also outperformed the Zacks categorized Auto-Tires-Trucks sector over the last six months.”
A number of other equities research analysts have also recently issued reports on CMI. Royal Bank Of Canada reaffirmed a “hold” rating and set a $140.00 target price on shares of Cummins in a research report on Wednesday, March 22nd. Credit Suisse Group set a $173.00 target price on Cummins and gave the stock a “buy” rating in a research report on Monday, March 27th. Barclays PLC set a $137.00 target price on Cummins and gave the stock a “hold” rating in a research report on Saturday, April 1st. Seaport Global Securities assumed coverage on Cummins in a research report on Thursday, April 6th. They issued a “neutral” rating for the company. Finally, Deutsche Bank AG increased their price objective on Cummins from $139.00 to $142.00 and gave the company a “sell” rating in a research report on Thursday, April 6th. One research analyst has rated the stock with a sell rating, eleven have issued a hold rating and eight have issued a buy rating to the company’s stock. Cummins has an average rating of “Hold” and a consensus target price of $151.84.
Shares of Cummins (NYSE CMI) traded down 0.06% during midday trading on Thursday, hitting $164.54. 723,611 shares of the stock were exchanged. The stock’s 50-day moving average price is $161.44 and its 200 day moving average price is $152.79. Cummins has a one year low of $116.03 and a one year high of $167.17. The stock has a market cap of $27.53 billion, a P/E ratio of 18.86 and a beta of 1.08.
Cummins (NYSE:CMI) last issued its earnings results on Tuesday, May 2nd. The company reported $2.36 earnings per share for the quarter, beating analysts’ consensus estimates of $1.81 by $0.55. Cummins had a return on equity of 20.87% and a net margin of 8.25%. The company had revenue of $4.59 billion for the quarter, compared to the consensus estimate of $4.15 billion. During the same quarter in the prior year, the company earned $1.87 EPS. The firm’s quarterly revenue was up 6.9% on a year-over-year basis. On average, analysts anticipate that Cummins will post $7.98 earnings per share for the current year.
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In other Cummins news, insider Tony Satterthwaite sold 4,000 shares of the firm’s stock in a transaction dated Thursday, July 6th. The stock was sold at an average price of $164.50, for a total transaction of $658,000.00. Following the transaction, the insider now owns 41,902 shares in the company, valued at $6,892,879. The sale was disclosed in a document filed with the SEC, which is available through this link. Also, insider Steven M. Chapman sold 6,540 shares of the firm’s stock in a transaction dated Tuesday, May 2nd. The stock was sold at an average price of $163.00, for a total value of $1,066,020.00. Following the transaction, the insider now owns 17,042 shares in the company, valued at approximately $2,777,846. The disclosure for this sale can be found here. In the last quarter, insiders sold 79,176 shares of company stock worth $12,900,695. 0.62% of the stock is owned by company insiders.
Institutional investors have recently modified their holdings of the company. Pinnacle Bank bought a new position in shares of Cummins during the first quarter worth about $105,000. World Asset Management Inc boosted its position in shares of Cummins by 10.1% in the first quarter. World Asset Management Inc now owns 16,701 shares of the company’s stock worth $2,525,000 after buying an additional 1,528 shares during the period. Private Trust Co. NA bought a new position in shares of Cummins during the first quarter worth about $250,000. Alambic Investment Management L.P. boosted its position in shares of Cummins by 0.7% in the first quarter. Alambic Investment Management L.P. now owns 2,416 shares of the company’s stock worth $365,000 after buying an additional 16 shares during the period. Finally, Alta Capital Management LLC boosted its position in shares of Cummins by 4.5% in the first quarter. Alta Capital Management LLC now owns 61,528 shares of the company’s stock worth $9,303,000 after buying an additional 2,672 shares during the period. Hedge funds and other institutional investors own 79.95% of the company’s stock.
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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