UBS Group set a $130.00 price objective on Cummins (NYSE:CMI) in a research report released on Tuesday, www.stocktargetadvisor.com reports. The brokerage currently has a sell rating on the stock.
Several other analysts have also recently weighed in on CMI. Stifel Nicolaus raised Cummins from a hold rating to a buy rating and lowered their price target for the company from $174.00 to $160.00 in a report on Tuesday, July 10th. Oppenheimer lowered their price target on Cummins from $168.00 to $192.00 and set an outperform rating on the stock in a report on Monday, July 23rd. Wells Fargo & Co set a $158.00 price target on Cummins and gave the company a hold rating in a report on Wednesday, August 1st. Credit Suisse Group lowered their price target on Cummins from $175.00 to $171.00 and set an outperform rating on the stock in a report on Wednesday, August 1st. Finally, Bank of America raised their price target on Cummins from $154.00 to $157.00 and gave the company a neutral rating in a report on Wednesday, August 1st. Two equities research analysts have rated the stock with a sell rating, fourteen have issued a hold rating and eight have given a buy rating to the company’s stock. Cummins currently has an average rating of Hold and a consensus price target of $163.30.
CMI traded down $3.18 during trading on Tuesday, reaching $143.07. 2,661,700 shares of the company were exchanged, compared to its average volume of 1,897,357. The stock has a market capitalization of $23.56 billion, a price-to-earnings ratio of 13.47, a price-to-earnings-growth ratio of 0.80 and a beta of 1.16. The company has a debt-to-equity ratio of 0.19, a quick ratio of 0.94 and a current ratio of 1.54. Cummins has a 12-month low of $124.72 and a 12-month high of $194.18.
Cummins (NYSE:CMI) last released its quarterly earnings results on Tuesday, October 30th. The company reported $4.05 earnings per share for the quarter, beating the consensus estimate of $3.76 by $0.29. Cummins had a return on equity of 29.17% and a net margin of 5.57%. The firm had revenue of $5.94 billion for the quarter, compared to analysts’ expectations of $5.96 billion. During the same quarter last year, the firm posted $2.71 EPS. The company’s revenue was up 12.5% compared to the same quarter last year. On average, research analysts forecast that Cummins will post 15.34 earnings per share for the current fiscal year.
Cummins declared that its Board of Directors has authorized a share buyback plan on Tuesday, October 9th that permits the company to buyback $2.00 billion in outstanding shares. This buyback authorization permits the company to repurchase up to 8.3% of its shares through open market purchases. Shares buyback plans are often an indication that the company’s management believes its stock is undervalued.
The company also recently disclosed a quarterly dividend, which will be paid on Monday, December 3rd. Investors of record on Thursday, November 15th will be issued a dividend of $1.14 per share. The ex-dividend date is Wednesday, November 14th. This represents a $4.56 dividend on an annualized basis and a dividend yield of 3.19%. Cummins’s dividend payout ratio is 42.94%.
In related news, CFO Pat Ward sold 4,503 shares of the firm’s stock in a transaction that occurred on Wednesday, October 3rd. The stock was sold at an average price of $148.93, for a total transaction of $670,631.79. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, insider Tony Satterthwaite sold 830 shares of the firm’s stock in a transaction that occurred on Monday, November 5th. The stock was sold at an average price of $141.61, for a total value of $117,536.30. Following the transaction, the insider now owns 40,371 shares in the company, valued at $5,716,937.31. The disclosure for this sale can be found here. Over the last 90 days, insiders have sold 26,495 shares of company stock worth $3,974,777. 0.62% of the stock is owned by corporate insiders.
Institutional investors and hedge funds have recently bought and sold shares of the stock. IFM Investors Pty Ltd grew its position in shares of Cummins by 46.5% in the 2nd quarter. IFM Investors Pty Ltd now owns 7,203 shares of the company’s stock worth $958,000 after buying an additional 2,287 shares during the last quarter. Polianta Ltd bought a new stake in shares of Cummins in the 2nd quarter worth approximately $1,157,000. Fulton Bank N.A. grew its position in shares of Cummins by 5.3% in the 2nd quarter. Fulton Bank N.A. now owns 14,400 shares of the company’s stock worth $1,915,000 after buying an additional 728 shares during the last quarter. Capital Investment Advisors LLC grew its position in shares of Cummins by 207.7% in the 2nd quarter. Capital Investment Advisors LLC now owns 37,751 shares of the company’s stock worth $5,021,000 after buying an additional 25,481 shares during the last quarter. Finally, Osborn Williams & Donohoe LLC grew its position in shares of Cummins by 63.2% in the 2nd quarter. Osborn Williams & Donohoe LLC now owns 20,967 shares of the company’s stock worth $2,789,000 after buying an additional 8,121 shares during the last quarter. Institutional investors and hedge funds own 79.79% 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.
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