Wolfe Research Upgrades Cummins (NYSE:CMI) to Outperform

Key Points

• Wolfe Research has upgraded Cummins from a "peer perform" rating to an "outperform" rating, reflecting improved analyst sentiment towards the company's performance.
• Various analysts have recently revised their target prices for Cummins, with Morgan Stanley setting it at $350.00 and Goldman Sachs raising it to $431.00.
• Cummins reported strong quarterly earnings with $6.43 per share, surpassing estimates and showing a revenue of $8.64 billion, although revenue declined 1.7% year-over-year.

Cummins (NYSE:CMI - Get Free Report) was upgraded by investment analysts at Wolfe Research from a "hold" rating to an "outperform" rating in a report issued on Monday, Marketbeat reports.

Several other analysts have also recently weighed in on CMI. Robert W. Baird upped their price objective on shares of Cummins from $315.00 to $355.00 and gave the stock a "neutral" rating in a research note on Friday, July 11th. Evercore ISI decreased their price target on shares of Cummins from $451.00 to $419.00 and set an "outperform" rating on the stock in a research note on Monday, May 19th. Citigroup increased their price target on shares of Cummins from $380.00 to $425.00 and gave the company a "buy" rating in a research note on Wednesday, August 6th. Morgan Stanley increased their price target on shares of Cummins from $340.00 to $350.00 and gave the company an "overweight" rating in a research note on Tuesday, May 6th. Finally, Barclays increased their price target on shares of Cummins from $381.00 to $387.00 and gave the company an "equal weight" rating in a research note on Monday, July 21st. One equities research analyst has rated the stock with a sell rating, eight have assigned a hold rating and six have issued a buy rating to the company. Based on data from MarketBeat.com, the stock presently has an average rating of "Hold" and an average price target of $370.83.

Cummins Price Performance

Cummins stock traded up $9.34 during trading hours on Monday, hitting $397.65. 350,061 shares of the stock were exchanged, compared to its average volume of 885,266. The company has a debt-to-equity ratio of 0.53, a quick ratio of 1.03 and a current ratio of 1.64. The stock has a market capitalization of $54.79 billion, a P/E ratio of 18.68, a P/E/G ratio of 1.88 and a beta of 1.02. Cummins has a 12 month low of $260.02 and a 12 month high of $397.50. The business's 50-day moving average is $341.28 and its two-hundred day moving average is $331.35.

Cummins (NYSE:CMI - Get Free Report) last issued its quarterly earnings data on Tuesday, August 5th. The company reported $6.43 earnings per share for the quarter, topping the consensus estimate of $5.21 by $1.22. The firm had revenue of $8.64 billion for the quarter, compared to analysts' expectations of $8.45 billion. Cummins had a net margin of 8.72% and a return on equity of 26.96%. The company's quarterly revenue was down 1.7% compared to the same quarter last year. During the same period in the prior year, the firm earned $5.26 earnings per share. Equities research analysts expect that Cummins will post 22.54 EPS for the current fiscal year.

Insiders Place Their Bets

In other news, Director John H. Stone bought 1,000 shares of the business's stock in a transaction on Friday, May 16th. The shares were bought at an average cost of $332.08 per share, for a total transaction of $332,080.00. Following the completion of the acquisition, the director owned 2,441 shares in the company, valued at approximately $810,607.28. This trade represents a 69.40% increase in their position. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Company insiders own 0.41% of the company's stock.

Institutional Investors Weigh In On Cummins

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Olde Wealth Management LLC bought a new position in Cummins in the first quarter valued at $30,000. Accredited Wealth Management LLC acquired a new stake in shares of Cummins during the 1st quarter worth about $31,000. Capital A Wealth Management LLC acquired a new stake in shares of Cummins during the 4th quarter worth about $32,000. Opal Wealth Advisors LLC acquired a new stake in Cummins in the 1st quarter worth about $37,000. Finally, Richardson Financial Services Inc. acquired a new stake in Cummins in the 1st quarter worth about $39,000. 83.46% of the stock is currently owned by institutional investors and hedge funds.

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.