Cummins (NYSE:CMI) Downgraded to “Hold” at StockNews.com

StockNews.com cut shares of Cummins (NYSE:CMI) from a buy rating to a hold rating in a report released on Tuesday.

A number of other equities research analysts have also weighed in on CMI. Evercore ISI boosted their target price on shares of Cummins from $231.00 to $244.00 and gave the company an in-line rating in a research note on Tuesday, February 20th. Truist Financial initiated coverage on shares of Cummins in a research note on Thursday, March 14th. They set a hold rating and a $303.00 target price for the company. TD Cowen boosted their target price on shares of Cummins from $260.00 to $272.00 and gave the company an outperform rating in a research note on Wednesday, February 7th. Citigroup upped their price objective on Cummins from $265.00 to $285.00 and gave the stock a buy rating in a research note on Monday, February 12th. Finally, Morgan Stanley began coverage on Cummins in a research note on Monday, January 8th. They issued an overweight rating and a $278.00 price objective for the company. Two equities research analysts have rated the stock with a sell rating, four have assigned a hold rating and five have issued a buy rating to the company. Based on data from MarketBeat.com, the stock currently has an average rating of Hold and a consensus price target of $279.70.

Cummins Stock Performance

CMI stock opened at $282.66 on Tuesday. The stock has a market capitalization of $38.66 billion, a PE ratio of 54.57, a price-to-earnings-growth ratio of 1.98 and a beta of 1.04. Cummins has a 12-month low of $203.18 and a 12-month high of $304.24. The company has a current ratio of 1.18, a quick ratio of 0.74 and a debt-to-equity ratio of 0.48. The stock’s 50 day simple moving average is $284.29 and its 200 day simple moving average is $251.77.

Cummins (NYSE:CMI) last announced its earnings results on Tuesday, February 6th. The company reported $4.14 earnings per share for the quarter, missing analysts’ consensus estimates of $4.41 by ($0.27). The company had revenue of $8.54 billion for the quarter, compared to analysts’ expectations of $8.10 billion. Cummins had a net margin of 2.16% and a return on equity of 25.68%. Cummins’s quarterly revenue was up 9.9% on a year-over-year basis. During the same quarter in the prior year, the firm posted $4.52 earnings per share. As a group, research analysts forecast that Cummins will post 18.34 earnings per share for the current fiscal year.

Cummins Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Thursday, March 7th. Shareholders of record on Friday, February 23rd were paid a $1.68 dividend. The ex-dividend date of this dividend was Thursday, February 22nd. This represents a $6.72 dividend on an annualized basis and a yield of 2.38%. Cummins’s payout ratio is presently 129.73%.

Insiders Place Their Bets

In other Cummins news, Director Daniel William Fisher purchased 562 shares of the business’s stock in a transaction on Tuesday, February 27th. The stock was acquired at an average price of $266.57 per share, for a total transaction of $149,812.34. Following the purchase, the director now owns 1,068 shares of the company’s stock, valued at approximately $284,696.76. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. In related news, Director Daniel William Fisher acquired 562 shares of the company’s stock in a transaction on Tuesday, February 27th. The stock was acquired at an average price of $266.57 per share, with a total value of $149,812.34. Following the acquisition, the director now directly owns 1,068 shares of the company’s stock, valued at $284,696.76. The purchase was disclosed in a legal filing with the SEC, which is accessible through this link. Also, VP Sharon R. Barner sold 2,100 shares of the stock in a transaction dated Wednesday, February 28th. The shares were sold at an average price of $271.29, for a total transaction of $569,709.00. Following the transaction, the vice president now directly owns 16,899 shares of the company’s stock, valued at approximately $4,584,529.71. The disclosure for this sale can be found here. In the last quarter, insiders sold 51,289 shares of company stock worth $13,576,838. Corporate insiders own 0.56% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Balentine LLC boosted its holdings in shares of Cummins by 3.3% during the 3rd quarter. Balentine LLC now owns 3,929 shares of the company’s stock valued at $898,000 after purchasing an additional 127 shares during the last quarter. Sequoia Financial Advisors LLC lifted its holdings in shares of Cummins by 200.9% in the 4th quarter. Sequoia Financial Advisors LLC now owns 5,790 shares of the company’s stock valued at $1,387,000 after acquiring an additional 3,866 shares during the last quarter. Allen Mooney & Barnes Investment Advisors LLC bought a new position in shares of Cummins in the 3rd quarter valued at about $9,048,000. Capital Advisors Inc. OK bought a new position in shares of Cummins in the 4th quarter valued at about $24,915,000. Finally, SG Americas Securities LLC lifted its holdings in shares of Cummins by 227.6% in the 4th quarter. SG Americas Securities LLC now owns 24,281 shares of the company’s stock valued at $5,817,000 after acquiring an additional 16,869 shares during the last quarter. Institutional investors 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.