Wall Street Zen Upgrades Cummins (NYSE:CMI) to Buy

Key Points

• Wall Street Zen upgraded Cummins from “hold” to “buy.” Overall analyst sentiment is “Moderate Buy,” with 13 Buy ratings, five Holds, and a consensus price target of $703.18.
• Cummins shares opened at $517.64, down 0.4%, and remain below their 50-day and 200-day moving averages. The stock has traded between $413.98 and $737.76 over the past year.
• The company’s latest quarterly revenue rose 9.4% year over year to $9.46 billion, exceeding estimates, although EPS of $6.73 missed expectations of $7.21. Institutional investors own 83.46% of Cummins, while insiders own 0.30%.

Cummins (NYSE:CMI - Get Free Report) was upgraded by stock analysts at Wall Street Zen from a "hold" rating to a "buy" rating in a report released on Sunday, Wall Street Zen reports.

CMI has been the topic of several other research reports. Sanford C. Bernstein reiterated a "market perform" rating and issued a $700.00 price target on shares of Cummins in a report on Wednesday, August 5th. Zacks Research cut shares of Cummins from a "strong-buy" rating to a "hold" rating in a research note on Monday, July 13th. Morgan Stanley upped their price objective on shares of Cummins from $752.00 to $761.00 and gave the company an "overweight" rating in a report on Friday, July 17th. UBS Group cut their price objective on shares of 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 began coverage on shares of Cummins in a report on Sunday, August 23rd. They set an "outperform" rating and a $781.00 target price for the company. Thirteen equities research analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company. According to data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $703.18.

Cummins Stock Down 0.4%

NYSE:CMI opened at $517.64 on Friday. Cummins has a 1-year low of $413.98 and a 1-year high of $737.76. The company has a 50-day moving average of $545.26 and a 200 day moving average of $619.42. The firm has a market cap of $71.26 billion, a PE ratio of 26.45, a price-to-earnings-growth ratio of 1.37 and a beta of 1.24. The company has a debt-to-equity ratio of 0.48, a current ratio of 1.73 and a quick ratio of 1.13.

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 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 business posted $6.43 EPS. The firm's revenue was up 9.4% compared to the same quarter last year. As a group, research analysts anticipate that Cummins will post 29.98 EPS for the current fiscal year.

Insider Activity

In related news, VP Earl Newsome sold 698 shares of the company's stock in a transaction dated Monday, August 24th. The shares were 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 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 SEC, which can be accessed through this link. 0.30% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Several hedge funds have recently bought and sold shares of CMI. BlackRock Inc. bought a new stake in Cummins during the 2nd quarter worth approximately $8,204,241,000. Bank of America Corp DE bought a new position in Cummins in the 2nd quarter valued at $1,408,353,000. Bank of New York Mellon Corp bought a new position in Cummins in the 2nd quarter valued at $973,198,000. Robeco Institutional Asset Management B.V. boosted its stake in Cummins by 6.4% in the third quarter. Robeco Institutional Asset Management B.V. now owns 1,026,782 shares of the company's stock worth $530,405,000 after purchasing an additional 62,107 shares in the last quarter. Finally, Legal & General Group Plc acquired a new position in Cummins in the second quarter worth $666,635,000. Hedge funds and other institutional investors own 83.46% of the company's stock.

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.

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