Cummins (NYSE:CMI) Stock Moved Down to "Hold" by Wall Street Zen

Key Points

• Wall Street Zen downgraded Cummins from “Buy” to “Hold,” although the broader analyst consensus remains “Moderate Buy,” with 13 Buy ratings and five Holds.
• Cummins shares opened at $500.75, below both their 50-day moving average of $536.75 and 200-day moving average of $602.02. The stock’s consensus price target is $694.24.
• The company’s latest quarterly results showed revenue of $9.46 billion, above expectations, but earnings per share of $6.73 missed the $7.21 consensus estimate; 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 note issued to investors on Monday, Wall Street Zen reports.

A number of other research firms have also recently weighed in on CMI. CICC Research assumed coverage on shares of Cummins in a research report on Sunday, August 23rd. They set an "outperform" rating and a $781.00 price objective for the company. Wells Fargo & Company dropped their price objective on shares of Cummins from $760.00 to $608.00 and set an "overweight" rating on the stock in a report on Monday, October 26th. DA Davidson lifted their price objective on Cummins from $605.00 to $750.00 and gave the company a "buy" rating in a research report on Thursday, August 6th. Bank of America decreased their price target on Cummins from $731.00 to $600.00 in a research report on Thursday, September 24th. Finally, Weiss Ratings downgraded shares of Cummins from a "buy (b)" rating to a "buy (b-)" rating in a report on Monday, August 31st. Thirteen research analysts have rated the stock with a Buy rating and five have issued a Hold rating to the stock. Based on data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $694.24.

Cummins Price Performance

CMI opened at $500.75 on Monday. The stock's 50 day moving average price is $536.75 and its 200-day moving average price is $602.02. The stock has a market capitalization of $68.94 billion, a PE ratio of 25.59, a price-to-earnings-growth ratio of 1.32 and a beta of 1.24. Cummins has a 52-week low of $426.79 and a 52-week high of $737.76. The company has a debt-to-equity ratio of 0.48, a quick ratio of 1.13 and a current ratio of 1.73.

Cummins (NYSE:CMI - Get Free Report) last issued its quarterly earnings results on Tuesday, August 4th. The company reported $6.73 EPS for the quarter, missing analysts' consensus estimates of $7.21 by ($0.48). The company had revenue of $9.46 billion during the quarter, compared to analysts' expectations of $9.33 billion. Cummins had a return on equity of 25.29% and a net margin of 7.82%. The business's quarterly revenue was up 9.4% compared to the same quarter last year. During the same quarter in the previous year, the company earned $6.43 EPS. On average, equities research analysts predict that Cummins will post 29.98 EPS for the current year.

Insider Buying and Selling

In related news, VP Earl Newsome sold 698 shares of the 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 transaction, the vice president directly owned 4,479 shares of the company's stock, valued at approximately $2,562,973.38. This represents a 13.48% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Insiders own 0.30% of the company's stock.

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the stock. Sageworth Trust Co grew its holdings in shares of Cummins by 2.4% during the third quarter. Sageworth Trust Co now owns 1,444 shares of the company's stock valued at $746,000 after purchasing an additional 34 shares during the last quarter. Focused Wealth Management Inc grew its holdings in shares of Cummins by 15.4% in the 3rd quarter. Focused Wealth Management Inc now owns 419 shares of the company's stock worth $216,000 after purchasing an additional 56 shares during the last quarter. Rakuten Investment Management Inc. lifted its position in Cummins by 9.5% during the 3rd quarter. Rakuten Investment Management Inc. now owns 24,730 shares of the company's stock valued at $12,893,000 after purchasing an additional 2,150 shares during the period. Parr Mcknight Wealth Management Group LLC lifted its holdings in Cummins by 2.8% during the third quarter. Parr Mcknight Wealth Management Group LLC now owns 5,258 shares of the company's stock worth $2,716,000 after acquiring an additional 143 shares in the last quarter. Finally, AIA Group Ltd grew its position in Cummins by 22.1% in the third quarter. AIA Group Ltd now owns 12,335 shares of the company's stock valued at $6,372,000 after purchasing an additional 2,235 shares in the last quarter. 83.46% of the stock is currently owned by institutional investors and hedge funds.

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.

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