Wells Fargo & Company Begins Coverage on Cummins (NYSE:CMI)

Stock analysts at Wells Fargo & Company initiated coverage on shares of Cummins (NYSE:CMI) in a note issued to investors on Thursday, MarketBeat.com reports. The firm set an “overweight” rating on the stock.

Other analysts have also recently issued reports about the stock. Evercore ISI reissued an “outperform” rating on shares of Cummins in a research note on Tuesday, August 19th. Melius Research upgraded Cummins from a “hold” rating to a “buy” rating and set a $500.00 price objective on the stock in a research report on Wednesday, September 3rd. Melius upgraded Cummins from a “hold” rating to a “buy” rating and set a $500.00 target price for the company in a research report on Wednesday, September 3rd. Barclays raised their price target on Cummins from $430.00 to $515.00 and gave the company an “equal weight” rating in a report on Tuesday. Finally, Sanford C. Bernstein reissued a “market perform” rating and set a $475.00 price objective on shares of Cummins in a report on Friday, November 7th. Ten equities research analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus target price of $445.93.

Cummins Stock Performance

Shares of Cummins stock traded down $5.95 during midday trading on Thursday, hitting $461.54. The company had a trading volume of 1,147,194 shares, compared to its average volume of 881,019. The stock has a market cap of $63.71 billion, a PE ratio of 21.70, a P/E/G ratio of 2.05 and a beta of 1.07. Cummins has a 1-year low of $260.02 and a 1-year high of $484.84. The business’s 50 day simple moving average is $428.42 and its two-hundred day simple moving average is $374.95. The company has a debt-to-equity ratio of 0.53, a current ratio of 1.64 and a quick ratio of 1.03.

Cummins (NYSE:CMI) last released its earnings results on Thursday, November 6th. The company reported $5.59 earnings per share for the quarter, topping analysts’ consensus estimates of $4.83 by $0.76. Cummins had a return on equity of 26.96% and a net margin of 8.72%.The business had revenue of $8.32 billion for the quarter, compared to the consensus estimate of $7.97 billion. During the same period last year, the business earned $5.86 earnings per share. The firm’s revenue for the quarter was down 1.6% compared to the same quarter last year. As a group, equities analysts predict that Cummins will post 22.54 EPS for the current fiscal year.

Insider Activity

In other Cummins news, CFO Mark Andrew Smith sold 13,110 shares of the firm’s stock in a transaction that occurred on Thursday, November 6th. The shares were sold at an average price of $470.66, for a total transaction of $6,170,352.60. Following the sale, the chief financial officer directly owned 31,582 shares in the company, valued at approximately $14,864,384.12. This trade represents a 29.33% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this link. Also, CEO Jennifer Rumsey sold 4,570 shares of Cummins 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 transaction, the chief executive officer directly owned 42,880 shares in the company, valued at approximately $20,320,403.20. The trade was a 9.63% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 38,127 shares of company stock worth $16,993,030 over the last three months. Company insiders own 0.41% of the company’s stock.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the business. Vanguard Group Inc. lifted its holdings in Cummins by 2.0% during the 2nd quarter. Vanguard Group Inc. now owns 17,628,149 shares of the company’s stock valued at $5,773,219,000 after purchasing an additional 344,680 shares during the last quarter. State Street Corp lifted its stake in shares of Cummins by 1.4% during the 2nd quarter. State Street Corp now owns 6,539,191 shares of the company’s stock worth $2,141,585,000 after buying an additional 92,073 shares during the last quarter. Geode Capital Management LLC lifted its stake in shares of Cummins by 1.3% during the 2nd quarter. Geode Capital Management LLC now owns 3,499,240 shares of the company’s stock worth $1,141,138,000 after buying an additional 43,720 shares during the last quarter. Fisher Asset Management LLC boosted its holdings in shares of Cummins by 2.8% during the 3rd quarter. Fisher Asset Management LLC now owns 3,367,001 shares of the company’s stock worth $1,422,121,000 after buying an additional 91,956 shares during the period. Finally, Northern Trust Corp raised its holdings in Cummins by 1.2% in the 1st quarter. Northern Trust Corp now owns 1,905,214 shares of the company’s stock valued at $597,170,000 after acquiring an additional 22,202 shares during the period. Institutional investors and hedge funds own 83.46% of the company’s stock.

About Cummins

Cummins Inc designs, manufactures, distributes, and services diesel and natural gas engines, electric and hybrid powertrains, and related components worldwide. It operates through five segments: Engine, Distribution, Components, Power Systems, and Accelera. The company offers 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; and offers parts and services, as well as remanufactured parts and engines.