Cummins (CMI) Price Target Lowered to $151.00 at Morgan Stanley

Cummins (NYSE:CMI) had its target price cut by Morgan Stanley from $165.00 to $151.00 in a research report released on Wednesday morning. They currently have a hold rating on the stock.

Several other analysts also recently issued reports on CMI. Zacks Investment Research downgraded Cummins from a buy rating to a hold rating in a report on Wednesday, July 4th. Bank of America boosted their price objective on Cummins from $154.00 to $157.00 and gave the stock a neutral rating in a report on Wednesday, August 1st. ValuEngine downgraded Cummins from a sell rating to a strong sell rating in a report on Wednesday, October 24th. Oppenheimer restated a buy rating and set a $164.00 price objective on shares of Cummins in a report on Tuesday, October 30th. Finally, Wells Fargo & Co restated a hold rating and set a $145.00 price objective (down previously from $158.00) on shares of Cummins in a report on Tuesday, October 30th. Two equities research analysts have rated the stock with a sell rating, fourteen have assigned a hold rating and eight have given a buy rating to the company’s stock. The stock currently has a consensus rating of Hold and an average target price of $163.60.

NYSE CMI traded down $0.36 on Wednesday, hitting $141.83. 1,355,994 shares of the company were exchanged, compared to its average volume of 1,939,000. The company has a current ratio of 1.54, a quick ratio of 1.03 and a debt-to-equity ratio of 0.19. The company has a market cap of $22.77 billion, a PE ratio of 9.77, a PEG ratio of 0.77 and a beta of 1.16. Cummins has a twelve month low of $124.72 and a twelve month high of $194.18.

Cummins (NYSE:CMI) last posted its quarterly earnings data on Tuesday, October 30th. The company reported $4.05 earnings per share (EPS) for the quarter, topping the Thomson Reuters’ consensus estimate of $3.76 by $0.29. The firm had revenue of $5.94 billion for the quarter, compared to the consensus estimate of $5.96 billion. Cummins had a return on equity of 29.17% and a net margin of 5.57%. The business’s revenue for the quarter was up 12.5% compared to the same quarter last year. During the same quarter in the previous year, the company earned $2.71 EPS. Research analysts forecast that Cummins will post 15.34 EPS for the current fiscal year.

The firm also recently announced a quarterly dividend, which will be paid on Monday, December 3rd. Stockholders of record on Thursday, November 15th will be issued a $1.14 dividend. The ex-dividend date of this dividend is Wednesday, November 14th. This represents a $4.56 dividend on an annualized basis and a dividend yield of 3.22%. Cummins’s dividend payout ratio is 42.94%.

Cummins declared that its Board of Directors has authorized a share repurchase plan on Tuesday, October 9th that allows the company to repurchase $2.00 billion in outstanding shares. This repurchase authorization allows the company to reacquire up to 8.3% of its stock through open market purchases. Stock repurchase plans are often a sign that the company’s board of directors believes its shares are undervalued.

In other news, CAO Marya M. Rose sold 14,579 shares of the company’s stock in a transaction dated Monday, October 8th. The stock was sold at an average price of $151.07, for a total value of $2,202,449.53. Following the transaction, the chief accounting officer now owns 24,424 shares in the company, valued at approximately $3,689,733.68. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, VP Tracy A. Embree sold 462 shares of the company’s stock in a transaction dated Monday, August 6th. The shares were sold at an average price of $141.70, for a total value of $65,465.40. Following the completion of the transaction, the vice president now owns 4,122 shares in the company, valued at approximately $584,087.40. The disclosure for this sale can be found here. Insiders sold a total of 25,352 shares of company stock worth $3,811,385 in the last quarter. 0.62% of the stock is owned by corporate insiders.

Institutional investors and hedge funds have recently modified their holdings of the company. Edge Wealth Management LLC acquired a new position in Cummins in the third quarter worth approximately $102,000. Migdal Insurance & Financial Holdings Ltd. increased its holdings in Cummins by 5,873.3% in the second quarter. Migdal Insurance & Financial Holdings Ltd. now owns 896 shares of the company’s stock worth $119,000 after buying an additional 881 shares during the last quarter. MHI Funds LLC acquired a new position in Cummins in the second quarter worth approximately $147,000. Qube Research & Technologies Ltd acquired a new position in Cummins in the second quarter worth approximately $155,000. Finally, Centaurus Financial Inc. increased its holdings in Cummins by 73.2% in the second quarter. Centaurus Financial Inc. now owns 1,230 shares of the company’s stock worth $164,000 after buying an additional 520 shares during the last quarter. Institutional investors own 79.42% 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 worldwide. It operates through four segments: Engine, Distribution, Components, and Power Systems segments. The Engine segment manufactures and markets a range of diesel and natural gas powered engines under the Cummins and other customer brands for the heavy-and medium-duty truck, bus, recreational vehicle, light-duty automotive, construction, mining, marine, rail, oil and gas, defense, and agricultural markets.

See Also: Understanding Price to Earnings Ratio (PE)

Analyst Recommendations for Cummins (NYSE:CMI)

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