Cummins (NYSE:CMI) Cut to “Hold” at Zacks Research

Zacks Research downgraded shares of Cummins (NYSE:CMI) from a strong-buy rating to a hold rating in a research report sent to investors on Wednesday,Zacks.com reports.

Other research analysts have also recently issued research reports about the stock. Wolfe Research cut shares of Cummins from an “outperform” rating to a “peer perform” rating and set a $540.00 target price on the stock. in a report on Monday. Citigroup increased their price target on shares of Cummins from $580.00 to $630.00 and gave the company a “buy” rating in a research report on Tuesday, January 13th. Weiss Ratings reissued a “buy (b-)” rating on shares of Cummins in a report on Monday, December 29th. Truist Financial upped their price objective on shares of Cummins from $628.00 to $653.00 and gave the company a “buy” rating in a research note on Thursday, December 18th. Finally, JPMorgan Chase & Co. raised their target price on Cummins from $485.00 to $580.00 and gave the stock a “neutral” rating in a research note on Wednesday, January 14th. Eleven investment analysts have rated the stock with a Buy rating and six have given a Hold rating to the stock. According to MarketBeat, Cummins presently has an average rating of “Moderate Buy” and an average target price of $522.07.

Cummins Stock Performance

NYSE CMI opened at $578.24 on Wednesday. The company has a 50-day simple moving average of $532.03 and a two-hundred day simple moving average of $453.01. Cummins has a 12-month low of $260.02 and a 12-month high of $592.53. The firm has a market cap of $79.82 billion, a price-to-earnings ratio of 30.01, a PEG ratio of 2.05 and a beta of 1.12. The company has a quick ratio of 1.11, a current ratio of 1.77 and a debt-to-equity ratio of 0.52.

Cummins (NYSE:CMI) last released its earnings results on Thursday, November 6th. The company reported $5.59 earnings per share for the quarter, beating analysts’ consensus estimates of $4.83 by $0.76. Cummins had a return on equity of 26.02% and a net margin of 7.95%.The company had revenue of $8.32 billion during the quarter, compared to analyst estimates of $7.97 billion. During the same quarter in the previous year, the company posted $5.86 EPS. Cummins’s revenue for the quarter was down 1.6% on a year-over-year basis. On average, equities analysts forecast that Cummins will post 22.54 EPS for the current year.

Insiders Place Their Bets

In other Cummins news, CEO Jennifer Rumsey sold 4,570 shares of Cummins stock in a transaction that occurred on Tuesday, November 11th. The stock was sold at an average price of $473.89, for a total transaction of $2,165,677.30. Following the sale, the chief executive officer directly owned 42,880 shares of the company’s stock, valued at approximately $20,320,403.20. The trade was a 9.63% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, insider Brett Michael Merritt sold 1,450 shares of the company’s stock in a transaction that occurred on Tuesday, November 25th. The stock was sold at an average price of $489.32, for a total value of $709,514.00. Following the transaction, the insider owned 9,271 shares in the company, valued at $4,536,485.72. This trade represents a 13.52% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 19,130 shares of company stock worth $9,045,544 over the last three months. Company insiders own 0.41% of the company’s stock.

Institutional Trading of Cummins

Hedge funds have recently modified their holdings of the business. Vanguard Group Inc. lifted its position in Cummins by 0.6% during the 4th quarter. Vanguard Group Inc. now owns 17,746,775 shares of the company’s stock valued at $9,058,841,000 after acquiring an additional 98,544 shares during the period. State Street Corp lifted its holdings in shares of Cummins by 1.4% during the second quarter. State Street Corp now owns 6,539,191 shares of the company’s stock valued at $2,141,585,000 after purchasing an additional 92,073 shares during the last quarter. Geode Capital Management LLC grew its stake in shares of Cummins by 1.3% in the 2nd quarter. Geode Capital Management LLC now owns 3,499,240 shares of the company’s stock worth $1,141,138,000 after buying an additional 43,720 shares during the last quarter. Fisher Asset Management LLC increased its position in Cummins by 2.8% during the 3rd quarter. Fisher Asset Management LLC now owns 3,367,001 shares of the company’s stock valued at $1,422,121,000 after buying an additional 91,956 shares in the last quarter. Finally, Norges Bank bought a new position in Cummins during the 2nd quarter valued at approximately $505,941,000. Institutional investors own 83.46% of the company’s stock.

About Cummins

Cummins Inc (NYSE: CMI) is a global power technology company that designs, manufactures, distributes and services a broad portfolio of diesel and natural gas engines, electrified powertrains, power generation systems and related components. Founded in 1919 and headquartered in Columbus, Indiana, Cummins has grown into one of the world’s leading suppliers of internal combustion engines and a provider of technologies that reduce emissions and improve fuel efficiency.

The company’s product lineup includes heavy-, medium- and light-duty engines for on-highway and off-highway applications, generator sets and power systems for commercial and industrial use, and key engine components such as turbochargers, fuel systems, air handling, filtration and aftertreatment solutions.