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

Key Points

• Wall Street Zen downgraded Cummins to “hold” from “buy,” though the broader analyst consensus remains “Moderate Buy,” with 13 Buy ratings and 5 Holds and an average price target of $708.18.
• Cummins shares opened at $530.72, well below their 52-week high of $737.76; the stock’s 50-day and 200-day moving averages were $555.86 and $619.86, respectively.
• The company’s latest quarterly revenue rose 9.4% year over year to $9.46 billion and exceeded estimates, but EPS of $6.73 missed the $7.21 consensus forecast. An executive also sold 698 shares, while institutional investors own 83.46% of the stock.

Cummins (NYSE:CMI - Get Free Report) was downgraded by analysts at Wall Street Zen from a "buy" rating to a "hold" rating in a research report issued on Saturday, Wall Street Zen reports.

CMI has been the topic of several other research reports. Zacks Research cut shares of Cummins from a "strong-buy" rating to a "hold" rating in a research note on Monday, July 13th. Truist Financial reduced their price objective on Cummins from $894.00 to $779.00 and set a "buy" rating for the company in a research note on Monday, October 5th. Citigroup decreased their target price on Cummins from $790.00 to $630.00 and set a "buy" rating on the stock in a report on Monday, October 12th. Weiss Ratings cut Cummins from a "buy (b)" rating to a "buy (b-)" rating in a report on Monday, August 31st. Finally, Bank of America lowered their target price on Cummins from $731.00 to $600.00 in a research report on Thursday, September 24th. Thirteen equities 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, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $708.18.

Cummins Price Performance

Shares of NYSE:CMI opened at $530.72 on Friday. The company has a quick ratio of 1.13, a current ratio of 1.73 and a debt-to-equity ratio of 0.48. The stock has a market capitalization of $73.06 billion, a PE ratio of 21.75, a price-to-earnings-growth ratio of 1.41 and a beta of 1.24. The firm's 50 day moving average price is $555.86 and its 200-day moving average price is $619.86. Cummins has a twelve month low of $405.82 and a twelve month high of $737.76.

Cummins (NYSE:CMI - Get Free Report) last announced its earnings results on Tuesday, August 4th. The company reported $6.73 earnings per share (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 business had revenue of $9.46 billion for the quarter, compared to the consensus estimate of $9.33 billion. During the same quarter last year, the firm posted $6.43 earnings per share. The business's quarterly revenue was up 9.4% compared to the same quarter last year. Equities research analysts expect that Cummins will post 29.98 EPS for the current year.

Insider Activity

In other news, VP Earl Newsome sold 698 shares of the firm's stock in a transaction on 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 directly owned 4,479 shares in the company, valued at $2,562,973.38. This trade represents a 13.48% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. 0.30% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several hedge funds have recently bought and sold shares of the company. Alpine Bank Wealth Management raised its stake in Cummins by 12.4% during the 3rd quarter. Alpine Bank Wealth Management now owns 562 shares of the company's stock valued at $271,000 after purchasing an additional 62 shares during the period. CWS Financial Advisors LLC lifted its holdings in Cummins by 973.2% in the 3rd quarter. CWS Financial Advisors LLC now owns 4,733 shares of the company's stock worth $2,445,000 after purchasing an additional 4,292 shares in the last quarter. Fulcrum Wealth Advisors LLC lifted its holdings in Cummins by 611.8% in the 3rd quarter. Fulcrum Wealth Advisors LLC now owns 16,264 shares of the company's stock worth $8,401,000 after purchasing an additional 13,979 shares in the last quarter. Kintegral Advisory LLC boosted its stake in Cummins by 223.8% in the 3rd quarter. Kintegral Advisory LLC now owns 26,140 shares of the company's stock worth $13,503,000 after purchasing an additional 18,068 shares during the period. Finally, Berman McAleer LLC boosted its stake in Cummins by 121.0% in the 3rd quarter. Berman McAleer LLC now owns 2,621 shares of the company's stock worth $1,354,000 after purchasing an additional 1,435 shares during the period. Institutional investors own 83.46% of the company's stock.

About Cummins

Cummins Inc NYSE: CMI is a global power technology company headquartered in Columbus, Indiana. Founded in 1919, the company designs, manufactures, sells and services power solutions for commercial, industrial and infrastructure applications.

Its products include diesel and natural-gas engines, electrified powertrains, batteries, fuel cell systems, generators and other power-generation equipment. Cummins also produces components such as filtration systems, fuel systems, turbochargers and emission-control technologies.

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