Zacks Research Upgrades Cummins (NYSE:CMI) to Strong-Buy

Cummins (NYSE:CMI) was upgraded by research analysts at Zacks Research from a “hold” rating to a “strong-buy” rating in a note issued to investors on Tuesday,Zacks.com reports.

A number of other equities research analysts have also recently commented on CMI. Wall Street Zen raised shares of Cummins from a “hold” rating to a “buy” rating in a research note on Saturday, November 15th. Wells Fargo & Company assumed coverage on Cummins in a research report on Thursday, November 13th. They set an “overweight” rating and a $599.00 price target for the company. Raymond James Financial upgraded Cummins from a “market perform” rating to an “outperform” rating and set a $585.00 price objective for the company in a research report on Monday, December 22nd. Sanford C. Bernstein reissued a “market perform” rating and issued a $475.00 price objective on shares of Cummins in a research report on Friday, November 7th. Finally, Melius Research upgraded Cummins from a “hold” rating to a “buy” rating and set a $500.00 price target for the company in a report on Wednesday, September 3rd. One investment analyst has rated the stock with a Strong Buy rating, thirteen have issued a Buy rating and five have issued a Hold rating to the stock. Based on data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average target price of $492.75.

Cummins Stock Down 0.6%

CMI stock opened at $510.66 on Tuesday. Cummins has a one year low of $260.02 and a one year high of $526.50. The company has a fifty day moving average of $483.44 and a 200-day moving average of $417.66. The stock has a market capitalization of $70.49 billion, a PE ratio of 26.50, a price-to-earnings-growth ratio of 2.02 and a beta of 1.11. The company has a debt-to-equity ratio of 0.52, a quick ratio of 1.11 and a current ratio of 1.77.

Cummins (NYSE:CMI) last released its quarterly earnings data on Thursday, November 6th. The company reported $5.59 earnings per share (EPS) for the quarter, topping the consensus estimate of $4.83 by $0.76. Cummins had a return on equity of 26.02% and a net margin of 7.95%.The firm had revenue of $8.32 billion during the quarter, compared to analysts’ expectations of $7.97 billion. During the same quarter in the prior year, the business posted $5.86 earnings per share. Cummins’s revenue was down 1.6% compared to the same quarter last year. As a group, analysts expect that Cummins will post 22.54 EPS for the current year.

Insider Activity

In other news, CEO Jennifer Rumsey sold 4,570 shares of the firm’s stock in a transaction that occurred on Tuesday, November 11th. The shares were sold at an average price of $473.89, for a total transaction of $2,165,677.30. Following the completion of the sale, the chief executive officer owned 42,880 shares of the company’s stock, valued at approximately $20,320,403.20. This trade represents a 9.63% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, insider Brett Michael Merritt sold 1,450 shares of Cummins stock in a transaction on Tuesday, November 25th. The stock was sold at an average price of $489.32, for a total transaction of $709,514.00. Following the completion of the sale, the insider owned 9,271 shares of the company’s stock, valued at approximately $4,536,485.72. This trade represents a 13.52% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last three months, insiders sold 27,330 shares of company stock worth $12,649,764. 0.41% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Institutional investors have recently added to or reduced their stakes in the stock. Flagship Wealth Advisors LLC bought a new position in Cummins in the 3rd quarter worth approximately $28,000. Osterweis Capital Management Inc. bought a new position in shares of Cummins in the second quarter valued at approximately $31,000. Guerra Advisors Inc acquired a new position in shares of Cummins during the third quarter valued at approximately $36,000. Salomon & Ludwin LLC lifted its holdings in shares of Cummins by 1,333.3% in the third quarter. Salomon & Ludwin LLC now owns 86 shares of the company’s stock valued at $37,000 after buying an additional 80 shares during the period. Finally, Caitong International Asset Management Co. Ltd acquired a new position in Cummins during the third quarter worth about $37,000. 83.46% of the stock is currently owned by institutional investors.

Cummins Company Profile

Cummins Inc (NYSE: CMI) is a global power technology company that designs, manufactures, distributes and services a broad portfolio of diesel and natural gas engines, electrified powertrains, power generation systems and related components. Founded in 1919 and headquartered in Columbus, Indiana, Cummins has grown into one of the world’s leading suppliers of internal combustion engines and a provider of technologies that reduce emissions and improve fuel efficiency.

The company’s product lineup includes heavy-, medium- and light-duty engines for on-highway and off-highway applications, generator sets and power systems for commercial and industrial use, and key engine components such as turbochargers, fuel systems, air handling, filtration and aftertreatment solutions.