Cummins (NYSE:CMI) Cut to Hold at Wall Street Zen

Wall Street Zen lowered shares of Cummins (NYSE:CMI) from a buy rating to a hold rating in a research note released on Saturday morning,Wall Street Zen reports.

A number of other research analysts have also recently commented on CMI. UBS Group cut their price target on shares of Cummins from $835.00 to $741.00 and set a “buy” rating for the company in a research note on Wednesday, September 30th. Morgan Stanley upped their price objective on Cummins from $752.00 to $761.00 and gave the company an “overweight” rating in a research note on Friday, July 17th. Evercore lowered their price objective on Cummins from $845.00 to $782.00 and set an “outperform” rating on the stock in a research note on Tuesday, August 11th. DA Davidson increased their target price on Cummins from $605.00 to $750.00 and gave the stock a “buy” rating in a report on Thursday, August 6th. Finally, Sanford C. Bernstein restated a “market perform” rating and set a $700.00 target price on shares of Cummins in a research report on Wednesday, August 5th. Thirteen analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company. According to data from MarketBeat, Cummins has an average rating of “Moderate Buy” and an average price target of $703.18.

Cummins Price Performance

NYSE:CMI opened at $522.38 on Friday. The company has a 50-day moving average of $553.66 and a 200-day moving average of $620.52. The company has a market capitalization of $71.91 billion, a price-to-earnings ratio of 21.70, a PEG ratio of 1.40 and a beta of 1.24. Cummins has a 52 week low of $407.57 and a 52 week high of $737.76. The company has a debt-to-equity ratio of 0.48, a quick ratio of 1.13 and a current ratio of 1.73.

Cummins (NYSE:CMI) last issued its earnings results on Tuesday, August 4th. The company reported $6.73 earnings per share for the quarter, missing the consensus estimate of $7.21 by ($0.48). The business had revenue of $9.46 billion for the quarter, compared to analyst estimates of $9.33 billion. Cummins had a net margin of 7.82% and a return on equity of 25.29%. Cummins’s revenue was up 9.4% on a year-over-year basis. During the same quarter last year, the firm posted $6.43 earnings per share. As a group, equities research analysts anticipate that Cummins will post 29.98 earnings per share for the current fiscal year.

Cummins Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Thursday, December 3rd. Stockholders of record on Friday, November 20th will be issued a $2.20 dividend. The ex-dividend date of this dividend is Friday, November 20th. This represents a $8.80 annualized dividend and a dividend yield of 1.7%. Cummins’s dividend payout ratio is presently 44.97%.

Insider Activity

In related news, VP Earl Newsome sold 698 shares of Cummins stock in a transaction dated Monday, August 24th. The shares were sold at an average price of $572.22, for a total transaction of $399,409.56. Following the completion of the transaction, the vice president directly owned 4,479 shares of the company’s stock, valued at $2,562,973.38. This trade represents a 13.48% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. 0.30% of the stock is owned by company insiders.

Institutional Trading of Cummins

Several hedge funds have recently modified their holdings of the company. BlackRock Inc. acquired a new position in shares of Cummins during the 2nd quarter worth approximately $8,204,241,000. Bank of America Corp DE bought a new position in shares of Cummins during the second quarter worth approximately $1,408,353,000. Bank of New York Mellon Corp bought a new position in shares of Cummins during the second quarter worth approximately $973,198,000. Legal & General Group Plc bought a new position in shares of Cummins during the second quarter worth approximately $666,635,000. Finally, Amundi raised its position in shares of Cummins by 19.7% in the second quarter. Amundi now owns 893,772 shares of the company’s stock valued at $637,446,000 after buying an additional 147,093 shares in the last quarter. Institutional investors and hedge funds own 83.46% of the company’s stock.

Cummins Company Profile

Cummins Inc is a global power technology company headquartered in Columbus, Indiana. Founded in 1919, the company designs, manufactures, sells and services engines and power systems for commercial vehicles, industrial equipment, mining, construction, agriculture, marine applications and other markets.

Cummins’ product portfolio includes diesel and natural gas engines, generators and other power-generation equipment, as well as fuel systems, filtration products, emissions-control systems, turbochargers and drivetrain components.