Cummins (NYSE:CMI) Rating Lowered to Hold at Zacks Research

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

Several other brokerages have also recently issued reports on CMI. Wall Street Zen raised Cummins from a “hold” rating to a “buy” rating in a research note on Saturday, November 15th. Wolfe Research lowered Cummins from an “outperform” rating to a “peer perform” rating and set a $540.00 price target on the stock. in a research note on Monday. Argus upped their price objective on shares of Cummins from $459.00 to $573.00 and gave the stock a “buy” rating in a research note on Tuesday, November 25th. Weiss Ratings reissued a “buy (b-)” rating on shares of Cummins in a research report on Monday, December 29th. Finally, JPMorgan Chase & Co. upped their price target on shares of Cummins from $485.00 to $580.00 and gave the stock a “neutral” rating in a research report on Wednesday, January 14th. Eleven equities research analysts have rated the stock with a Buy rating and six have given a Hold rating to the stock. According to data from MarketBeat, Cummins presently has a consensus rating of “Moderate Buy” and a consensus price target of $522.07.

Cummins Stock Performance

CMI stock opened at $583.51 on Wednesday. Cummins has a twelve month low of $260.02 and a twelve month high of $592.53. The firm has a market cap of $80.54 billion, a price-to-earnings ratio of 30.28, a PEG ratio of 2.03 and a beta of 1.12. The business’s fifty day simple moving average is $529.91 and its two-hundred day simple moving average is $451.36. The company has a quick ratio of 1.11, a current ratio of 1.77 and a debt-to-equity ratio of 0.52.

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

Insider Buying and Selling

In related news, CEO Jennifer Rumsey sold 4,570 shares of the 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 $20,320,403.20. This represents a 9.63% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. 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 transaction, the insider directly owned 9,271 shares in the company, valued at $4,536,485.72. This represents a 13.52% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 19,130 shares of company stock worth $9,045,544 in the last 90 days. 0.41% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Cummins

A number of large investors have recently modified their holdings of CMI. Thompson Investment Management Inc. acquired a new stake in Cummins in the 4th quarter worth approximately $26,000. Ares Financial Consulting LLC purchased a new stake in shares of Cummins during the fourth quarter valued at $29,000. Holos Integrated Wealth LLC acquired a new position in shares of Cummins in the 4th quarter valued at $32,000. Palouse Capital Management Inc. purchased a new position in Cummins in the 4th quarter worth $33,000. Finally, Flagship Wealth Advisors LLC acquired a new stake in Cummins during the 3rd quarter worth about $28,000. Hedge funds and other institutional investors own 83.46% of the company’s stock.

About Cummins

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.