StockNews.com Lowers Cummins (NYSE:CMI) to Hold

StockNews.com downgraded shares of Cummins (NYSE:CMI - Free Report) from a buy rating to a hold rating in a research report released on Tuesday morning.

A number of other brokerages have also issued reports on CMI. Bank of America cut shares of Cummins from a neutral rating to an underperform rating and lowered their target price for the company from $243.00 to $225.00 in a research note on Friday, January 19th. TheStreet cut Cummins from an a- rating to a c+ rating in a research report on Tuesday, February 6th. Citigroup increased their price target on shares of Cummins from $265.00 to $285.00 and gave the company a buy rating in a research note on Monday, February 12th. The Goldman Sachs Group lifted their target price on Cummins from $270.00 to $306.00 and gave the stock a neutral rating in a report on Tuesday, April 16th. Finally, JPMorgan Chase & Co. upped their price target on shares of Cummins from $245.00 to $275.00 and gave the stock an underweight rating in a research report on Monday, March 25th. Two research analysts have rated the stock with a sell rating, four have issued a hold rating and five have assigned a buy rating to the company. Based on data from MarketBeat, the stock has an average rating of Hold and a consensus price target of $279.70.

Cummins Trading Down 3.7 %

Shares of Cummins stock traded down $10.99 during mid-day trading on Tuesday, hitting $282.66. 1,212,230 shares of the stock were exchanged, compared to its average volume of 2,643,755. The company has a 50-day simple moving average of $284.29 and a 200 day simple moving average of $251.77. The company has a current ratio of 1.18, a quick ratio of 0.74 and a debt-to-equity ratio of 0.48. The stock has a market capitalization of $38.66 billion, a price-to-earnings ratio of 54.57, a price-to-earnings-growth ratio of 1.98 and a beta of 1.04. Cummins has a twelve month low of $203.18 and a twelve month high of $304.24.

Cummins (NYSE:CMI - Get Free Report) last released its earnings results on Tuesday, February 6th. The company reported $4.14 earnings per share for the quarter, missing the consensus estimate of $4.41 by ($0.27). Cummins had a return on equity of 25.68% and a net margin of 2.16%. The business had revenue of $8.54 billion for the quarter, compared to analysts' expectations of $8.10 billion. During the same quarter last year, the company posted $4.52 earnings per share. The business's quarterly revenue was up 9.9% compared to the same quarter last year. Research analysts forecast that Cummins will post 18.34 EPS for the current year.

Cummins Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Thursday, March 7th. Shareholders of record on Friday, February 23rd were issued a $1.68 dividend. This represents a $6.72 dividend on an annualized basis and a yield of 2.38%. The ex-dividend date of this dividend was Thursday, February 22nd. Cummins's payout ratio is 129.73%.

Insider Activity

In other Cummins news, VP Sharon R. Barner sold 11,000 shares of the business's stock in a transaction on Thursday, February 15th. The shares were sold at an average price of $262.16, for a total transaction of $2,883,760.00. Following the completion of the sale, the vice president now owns 17,874 shares in the company, valued at approximately $4,685,847.84. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. In other Cummins news, VP Sharon R. Barner sold 11,000 shares of the business's stock in a transaction that occurred on Thursday, February 15th. The stock was sold at an average price of $262.16, for a total transaction of $2,883,760.00. Following the completion of the sale, the vice president now directly owns 17,874 shares of the company's stock, valued at approximately $4,685,847.84. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CEO Jennifer Rumsey sold 739 shares of the firm's stock in a transaction that occurred on Friday, February 16th. The shares were sold at an average price of $266.91, for a total value of $197,246.49. Following the completion of the transaction, the chief executive officer now owns 2,698 shares in the company, valued at approximately $720,123.18. The disclosure for this sale can be found here. Insiders sold a total of 51,289 shares of company stock worth $13,576,838 in the last three months. Company insiders own 0.56% of the company's stock.

Hedge Funds Weigh In On Cummins

Hedge funds and other institutional investors have recently modified their holdings of the business. Vanguard Group Inc. raised its position in Cummins by 13.1% in the third quarter. Vanguard Group Inc. now owns 17,761,317 shares of the company's stock worth $4,057,750,000 after acquiring an additional 2,055,239 shares during the period. Norges Bank bought a new stake in shares of Cummins in the 4th quarter worth approximately $298,867,000. International Assets Investment Management LLC lifted its stake in Cummins by 21,025.8% in the fourth quarter. International Assets Investment Management LLC now owns 735,177 shares of the company's stock valued at $176,126,000 after purchasing an additional 731,697 shares during the last quarter. iA Global Asset Management Inc. bought a new position in Cummins during the third quarter valued at $71,268,000. Finally, Envestnet Asset Management Inc. increased its position in Cummins by 88.9% in the third quarter. Envestnet Asset Management Inc. now owns 584,163 shares of the company's stock worth $133,458,000 after buying an additional 274,927 shares during the last quarter. Hedge funds and other institutional investors own 83.46% of the company's stock.

Cummins Company Profile

Cummins Inc designs, manufactures, distributes, and services diesel and natural gas engines, electric and hybrid powertrains, and related components worldwide. It operates through five segments: Engine, Distribution, Components, Power Systems, and Accelera. The company offers diesel and natural gas-powered engines under the Cummins and other customer brands for the heavy and medium-duty truck, bus, recreational vehicle, light-duty automotive, construction, mining, marine, rail, oil and gas, defense, and agricultural markets; and offers parts and services, as well as remanufactured parts and engines.