Cummins (NYSE:CMI) Downgraded by Wall Street Zen to Hold

Wall Street Zen downgraded shares of Cummins (NYSE:CMI) from a buy rating to a hold rating in a research report sent to investors on Saturday morning,Wall Street Zen reports.

Several other research analysts have also recently weighed in on the company. Zacks Research cut Cummins from a “strong-buy” rating to a “hold” rating in a research note on Monday, July 13th. Morgan Stanley boosted their target price on shares of Cummins from $752.00 to $761.00 and gave the stock an “overweight” rating in a research report on Friday, July 17th. Bank of America reduced their target price on shares of Cummins from $731.00 to $600.00 in a research note on Thursday, September 24th. UBS Group lowered their price objective on Cummins from $835.00 to $741.00 and set a “buy” rating on the stock in a research note on Wednesday, September 30th. Finally, CICC Research initiated coverage on Cummins in a report on Sunday, August 23rd. They set an “outperform” rating and a $781.00 price target for the company. Thirteen research analysts have rated the stock with a Buy rating and five have given a Hold rating to the company. According to data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus target price of $708.18.

Cummins Price Performance

Shares of CMI opened at $530.72 on Friday. The company has a current ratio of 1.73, a quick ratio of 1.13 and a debt-to-equity ratio of 0.48. The firm has a market cap of $73.06 billion, a price-to-earnings ratio of 27.12, a PEG ratio of 1.40 and a beta of 1.24. Cummins has a 52 week low of $405.82 and a 52 week high of $737.76. The stock has a 50 day moving average of $555.86 and a 200-day moving average of $619.86.

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

Cummins Announces Dividend

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

Insider Buying and Selling at Cummins

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

Institutional Investors Weigh In On Cummins

Several institutional investors and hedge funds have recently added to or reduced their stakes in CMI. Valmark Advisers Inc. raised its stake in shares of Cummins by 1.9% during the first quarter. Valmark Advisers Inc. now owns 877 shares of the company’s stock valued at $472,000 after acquiring an additional 16 shares during the last quarter. Guardian Partners Inc. lifted its stake in Cummins by 1.0% in the first quarter. Guardian Partners Inc. now owns 1,584 shares of the company’s stock valued at $852,000 after buying an additional 16 shares during the period. Uhlmann Price Securities LLC boosted its stake in Cummins by 2.4% during the first quarter. Uhlmann Price Securities LLC now owns 717 shares of the company’s stock worth $386,000 after acquiring an additional 17 shares in the last quarter. Legacy Financial Advisors Inc. boosted its position in shares of Cummins by 2.0% during the 2nd quarter. Legacy Financial Advisors Inc. now owns 955 shares of the company’s stock worth $681,000 after purchasing an additional 19 shares in the last quarter. Finally, Mengis Capital Management Inc. boosted its holdings in Cummins by 0.3% in the fourth quarter. Mengis Capital Management Inc. now owns 6,463 shares of the company’s stock worth $3,299,000 after acquiring an additional 20 shares in the last quarter. 83.46% of the stock is currently owned by institutional investors.

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.