Cummins (NYSE:CMI) Stock Rating Cut to Hold at Wall Street Zen

Wall Street Zen cut shares of Cummins (NYSE:CMI) from a buy rating to a hold rating in a research report report published on Monday morning,Wall Street Zen reports.

CMI has been the topic of a number of other reports. Zacks Research lowered shares of Cummins from a “strong-buy” rating to a “hold” rating in a research note on Monday, July 13th. Citigroup dropped their price target on Cummins from $790.00 to $630.00 and set a “buy” rating for the company in a research report on Monday, October 12th. DA Davidson upped their price target on Cummins from $605.00 to $750.00 and gave the company a “buy” rating in a research report on Thursday, August 6th. Sanford C. Bernstein reaffirmed a “market perform” rating and issued a $700.00 price target on shares of Cummins in a report on Wednesday, August 5th. Finally, Morgan Stanley lifted their price objective on Cummins from $752.00 to $761.00 and gave the stock an “overweight” rating in a research report on Friday, July 17th. Thirteen research analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the stock. According to data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus target price of $694.24.

Cummins Stock Performance

NYSE:CMI opened at $500.00 on Monday. The company’s 50-day moving average price is $535.00 and its 200-day moving average price is $601.68. 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 company has a market cap of $68.83 billion, a P/E ratio of 21.70, a P/E/G ratio of 1.40 and a beta of 1.24. Cummins has a twelve month low of $426.79 and a twelve month high of $737.76.

Cummins (NYSE:CMI) last posted its quarterly earnings results on Tuesday, August 4th. The company reported $6.73 earnings per share for the quarter, missing analysts’ consensus estimates of $7.21 by ($0.48). Cummins had a return on equity of 25.29% and a net margin of 7.82%. The business had revenue of $9.46 billion for the quarter, compared to analyst estimates of $9.33 billion. During the same quarter in the previous year, the firm posted $6.43 earnings per share. The business’s revenue was up 9.4% compared to the same quarter last year. On average, sell-side analysts forecast that Cummins will post 29.98 earnings per share for the current fiscal year.

Cummins Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, December 3rd. Shareholders of record on Friday, November 20th will be given a $2.20 dividend. This represents a $8.80 annualized dividend and a yield of 1.8%. The ex-dividend date of this dividend is Friday, November 20th. Cummins’s payout ratio is currently 44.97%.

Insider Activity

In other news, VP Earl Newsome sold 698 shares of the stock in a transaction dated Monday, August 24th. The shares were sold at an average price of $572.22, for a total transaction of $399,409.56. Following the sale, the vice president owned 4,479 shares of the company’s stock, valued at approximately $2,562,973.38. This represents a 13.48% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Corporate insiders own 0.30% of the company’s stock.

Institutional Investors Weigh In On Cummins

Several large investors have recently added to or reduced their stakes in CMI. BlackRock Inc. purchased a new stake in Cummins in the 2nd quarter valued at approximately $8,204,241,000. Bank of America Corp DE acquired a new stake in Cummins in the 2nd quarter worth about $1,408,353,000. Bank of New York Mellon Corp purchased a new stake in Cummins in the second quarter valued at approximately $973,198,000. Legal & General Group Plc acquired a new position in shares of Cummins in the 2nd quarter valued at $666,635,000. Finally, Vontobel Holding Ltd. boosted its holdings in shares of Cummins by 1,436.1% in the 3rd quarter. Vontobel Holding Ltd. now owns 584,674 shares of the company’s stock valued at $302,025,000 after purchasing an additional 546,613 shares during the last quarter. 83.46% of the stock is owned by hedge funds and other institutional investors.

About Cummins

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.