Bank of America Upgrades Cummins (CMI) to “Buy”

Cummins (NYSE:CMI) was upgraded by stock analysts at Bank of America from a “neutral” rating to a “buy” rating in a report released on Friday, Marketbeat Ratings reports. The firm presently has a $215.00 price objective on the stock. Bank of America’s price target would indicate a potential upside of 13.71% from the company’s previous close.

Several other brokerages have also weighed in on CMI. Seaport Global Securities restated a “neutral” rating on shares of Cummins in a report on Tuesday. Buckingham Research upped their target price on shares of Cummins from $180.00 to $195.00 and gave the company a “buy” rating in a research note on Wednesday, November 1st. Stifel Nicolaus reaffirmed a “hold” rating and issued a $190.00 target price (up previously from $186.00) on shares of Cummins in a research note on Wednesday, November 1st. Piper Jaffray Companies set a $170.00 target price on shares of Cummins and gave the company a “hold” rating in a research note on Tuesday, October 31st. Finally, Robert W. Baird reaffirmed a “sell” rating and issued a $155.00 target price on shares of Cummins in a research note on Wednesday, November 1st. Two equities research analysts have rated the stock with a sell rating, fourteen have given a hold rating and five have assigned a buy rating to the company. Cummins has a consensus rating of “Hold” and a consensus price target of $181.46.

Shares of Cummins (CMI) traded up $5.36 during midday trading on Friday, reaching $189.08. 1,807,950 shares of the company traded hands, compared to its average volume of 1,150,000. Cummins has a fifty-two week low of $140.18 and a fifty-two week high of $189.57. The firm has a market capitalization of $31,380.00, a price-to-earnings ratio of 19.22, a P/E/G ratio of 1.27 and a beta of 1.14. The company has a debt-to-equity ratio of 0.19, a current ratio of 1.57 and a quick ratio of 1.03.

Cummins (NYSE:CMI) last announced its quarterly earnings data on Tuesday, October 31st. The company reported $2.71 earnings per share for the quarter, beating the Thomson Reuters’ consensus estimate of $2.47 by $0.24. Cummins had a net margin of 8.49% and a return on equity of 21.28%. The business had revenue of $5.29 billion for the quarter, compared to analyst estimates of $4.79 billion. During the same period in the prior year, the business posted $2.02 earnings per share. Cummins’s revenue was up 26.2% compared to the same quarter last year. equities research analysts anticipate that Cummins will post 10.22 earnings per share for the current fiscal year.

Several hedge funds have recently modified their holdings of the company. State of Alaska Department of Revenue increased its position in shares of Cummins by 50.8% during the fourth quarter. State of Alaska Department of Revenue now owns 31,483 shares of the company’s stock worth $5,559,000 after acquiring an additional 10,600 shares in the last quarter. Alpha Windward LLC increased its position in shares of Cummins by 12.8% during the fourth quarter. Alpha Windward LLC now owns 4,067 shares of the company’s stock worth $718,000 after acquiring an additional 460 shares in the last quarter. Livforsakringsbolaget Skandia Omsesidigt increased its position in shares of Cummins by 19.0% during the fourth quarter. Livforsakringsbolaget Skandia Omsesidigt now owns 37,584 shares of the company’s stock worth $6,638,000 after acquiring an additional 6,000 shares in the last quarter. Cullinan Associates Inc. increased its position in shares of Cummins by 9.1% during the fourth quarter. Cullinan Associates Inc. now owns 14,873 shares of the company’s stock worth $2,627,000 after acquiring an additional 1,240 shares in the last quarter. Finally, CAPROCK Group Inc. bought a new stake in shares of Cummins during the fourth quarter worth $218,000. 82.36% of the stock is owned by institutional investors.

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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.

Analyst Recommendations for Cummins (NYSE:CMI)

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