Cummins Inc. (CMI) Upgraded to “Buy” by Zacks Investment Research
Cummins Inc. (NYSE:CMI) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a report released on Friday. The firm currently has a $186.00 target price on the stock. Zacks Investment Research‘s price objective would suggest a potential upside of 11.63% from the company’s current price.
According to Zacks, “Zacks Consensus Estimate for Cummins’ quarterly earnings has been going up of late. The company is developing a Class 7 heavy-duty electric truck having a 140 kWh battery pack, to cater bus and commercial truck operators. This new electric truck will help Cummins to witness a growing trend in the demand of its truck and construction products. It is also poised to benefit from its business expansions in China and acquisitions and partnerships in North America. Also, year to date, its shares have outperformed against the industry it belongs to.”
Several other equities research analysts also recently issued reports on the company. Piper Jaffray Companies restated a “hold” rating and issued a $159.00 price target on shares of Cummins in a report on Tuesday. Jefferies Group LLC restated a “hold” rating and issued a $165.00 price target on shares of Cummins in a report on Thursday, September 7th. Buckingham Research assumed coverage on Cummins in a report on Tuesday, September 5th. They issued a “buy” rating and a $180.00 price target for the company. ValuEngine upgraded Cummins from a “hold” rating to a “buy” rating in a report on Friday, September 1st. Finally, Stifel Nicolaus restated a “hold” rating and issued a $168.00 price target (up from $160.00) on shares of Cummins in a report on Tuesday, August 8th. One investment analyst has rated the stock with a sell rating, nine have issued a hold rating and nine have issued a buy rating to the stock. The stock has a consensus rating of “Hold” and an average target price of $161.15.
Cummins (CMI) opened at 165.33 on Friday. Cummins has a 52 week low of $118.28 and a 52 week high of $170.68. The stock has a market cap of $27.61 billion, a PE ratio of 18.69 and a beta of 1.10. The company has a 50-day moving average price of $158.43 and a 200-day moving average price of $156.59.
Cummins (NYSE:CMI) last announced its quarterly earnings results on Tuesday, August 1st. The company reported $2.53 earnings per share (EPS) for the quarter, missing the consensus estimate of $2.58 by ($0.05). Cummins had a return on equity of 20.67% and a net margin of 8.10%. The business had revenue of $5.08 billion during the quarter, compared to the consensus estimate of $4.80 billion. During the same quarter last year, the company earned $2.40 earnings per share. The firm’s revenue was up 12.1% compared to the same quarter last year. Analysts anticipate that Cummins will post $7.98 earnings per share for the current year.
In related news, Director Franklin R. Changdiaz sold 1,633 shares of the stock in a transaction that occurred on Wednesday, August 9th. The stock was sold at an average price of $159.27, for a total transaction of $260,087.91. Following the completion of the transaction, the director now directly owns 5,814 shares of the company’s stock, valued at $925,995.78. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, 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 of the company’s stock, valued at $2,196,110.25. The disclosure for this sale can be found here. Insiders have sold 58,233 shares of company stock valued at $9,624,355 over the last three months. Insiders own 0.62% of the company’s stock.
A number of hedge funds and other institutional investors have recently modified their holdings of the stock. Navellier & Associates Inc lifted its position in shares of Cummins by 3.4% in the second quarter. Navellier & Associates Inc now owns 16,476 shares of the company’s stock valued at $2,673,000 after buying an additional 539 shares during the last quarter. USA Financial Portformulas Corp acquired a new stake in shares of Cummins in the second quarter valued at approximately $999,000. Toronto Dominion Bank lifted its position in shares of Cummins by 25.3% in the second quarter. Toronto Dominion Bank now owns 52,417 shares of the company’s stock valued at $8,502,000 after buying an additional 10,581 shares during the last quarter. Advisory Services Network LLC lifted its position in shares of Cummins by 0.3% in the second quarter. Advisory Services Network LLC now owns 15,459 shares of the company’s stock valued at $2,508,000 after buying an additional 51 shares during the last quarter. Finally, WINTON GROUP Ltd lifted its position in shares of Cummins by 10.2% in the second quarter. WINTON GROUP Ltd now owns 38,158 shares of the company’s stock valued at $6,190,000 after buying an additional 3,529 shares during the last quarter. 80.43% of the stock is owned by hedge funds and other institutional investors.
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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