Cummins (NYSE:CMI) Downgraded to Hold Rating by Zacks Research

Zacks Research lowered shares of Cummins (NYSE:CMI) from a strong-buy rating to a hold rating in a research note published on Monday,Zacks.com reports.

Other research analysts have also recently issued research reports about the company. Truist Financial boosted their price objective on Cummins from $815.00 to $901.00 and gave the stock a “buy” rating in a research note on Thursday, July 2nd. Morgan Stanley increased their target price on Cummins from $675.00 to $752.00 and gave the company an “overweight” rating in a research note on Wednesday, May 6th. Sanford C. Bernstein reiterated a “market perform” rating on shares of Cummins in a report on Friday, May 22nd. UBS Group reissued a “buy” rating on shares of Cummins in a research report on Wednesday, June 17th. Finally, Raymond James Financial upped their price target on Cummins from $675.00 to $745.00 and gave the stock an “outperform” rating in a report on Tuesday, May 26th. Eleven equities research analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the stock. According to data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus target price of $739.43.

Cummins Stock Performance

Shares of CMI stock opened at $675.02 on Monday. The company has a current ratio of 1.71, a quick ratio of 1.11 and a debt-to-equity ratio of 0.50. The company has a market cap of $93.15 billion, a PE ratio of 35.03, a P/E/G ratio of 1.62 and a beta of 1.22. The company’s fifty day simple moving average is $679.36 and its 200-day simple moving average is $612.10. Cummins has a 52 week low of $339.74 and a 52 week high of $737.76.

Cummins (NYSE:CMI) last announced its quarterly earnings results on Tuesday, May 5th. The company reported $6.15 earnings per share for the quarter, topping analysts’ consensus estimates of $5.63 by $0.52. Cummins had a net margin of 7.89% and a return on equity of 25.25%. The firm had revenue of $8.40 billion during the quarter, compared to analysts’ expectations of $8.37 billion. During the same period in the prior year, the company earned $5.96 EPS. The firm’s revenue was up 2.7% on a year-over-year basis. As a group, equities research analysts anticipate that Cummins will post 29.33 EPS for the current year.

Cummins Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, September 3rd. Shareholders of record on Friday, August 21st will be paid a dividend of $2.20 per share. The ex-dividend date is Friday, August 21st. This is an increase from Cummins’s previous quarterly dividend of $2.00. This represents a $8.80 annualized dividend and a yield of 1.3%. Cummins’s payout ratio is currently 41.52%.

Insider Activity at Cummins

In other Cummins news, VP Marvin Boakye sold 3,481 shares of the stock in a transaction that occurred on Friday, May 8th. The stock was sold at an average price of $679.90, for a total transaction of $2,366,731.90. Following the transaction, the vice president owned 8,508 shares of the company’s stock, valued at $5,784,589.20. This trade represents a 29.03% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Also, CAO Nicole Lamb-Hale sold 2,408 shares of Cummins stock in a transaction that occurred on Friday, May 8th. The stock was sold at an average price of $685.34, for a total value of $1,650,298.72. Following the completion of the transaction, the chief accounting officer owned 14,084 shares of the company’s stock, valued at approximately $9,652,328.56. The trade was a 14.60% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 13,579 shares of company stock worth $9,377,684 over the last quarter. 0.30% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Cummins

A number of hedge funds have recently added to or reduced their stakes in CMI. Thompson Investment Management Inc. bought a new position in shares of Cummins in the 4th quarter worth about $26,000. Activest Wealth Management grew its position in shares of Cummins by 537.5% during the 4th quarter. Activest Wealth Management now owns 51 shares of the company’s stock valued at $26,000 after buying an additional 43 shares during the last quarter. Cedar Mountain Advisors LLC raised its stake in Cummins by 1,500.0% during the first quarter. Cedar Mountain Advisors LLC now owns 48 shares of the company’s stock worth $26,000 after acquiring an additional 45 shares during the period. Wellington Shields Capital Management LLC acquired a new stake in Cummins during the fourth quarter worth about $27,000. Finally, Key Financial Inc lifted its holdings in Cummins by 62.5% in the first quarter. Key Financial Inc now owns 52 shares of the company’s stock worth $28,000 after acquiring an additional 20 shares during the last quarter. Institutional investors and hedge funds 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.