Cummins (NYSE:CMI) Cut to “Buy” at Wall Street Zen

Cummins (NYSE:CMI) was downgraded by equities researchers at Wall Street Zen from a “strong-buy” rating to a “buy” rating in a report issued on Sunday.

A number of other equities research analysts also recently weighed in on CMI. Raymond James Financial boosted their price objective on shares of Cummins from $585.00 to $675.00 and gave the company an “outperform” rating in a research report on Monday, February 9th. Wells Fargo & Company lifted their target price on Cummins from $599.00 to $630.00 and gave the company an “overweight” rating in a research note on Friday, January 23rd. Zacks Research lowered Cummins from a “strong-buy” rating to a “hold” rating in a report on Wednesday, January 28th. UBS Group set a $565.00 price target on Cummins and gave the stock a “neutral” rating in a research report on Friday, February 6th. Finally, Wolfe Research downgraded Cummins from an “outperform” rating to a “peer perform” rating and set a $540.00 price target on the stock. in a report on Monday, January 26th. Eleven investment analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the stock. Based on data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $588.93.

Cummins Stock Performance

Cummins stock opened at $539.59 on Friday. The company has a debt-to-equity ratio of 0.51, a current ratio of 1.76 and a quick ratio of 1.16. Cummins has a 12 month low of $260.02 and a 12 month high of $617.98. The company has a fifty day moving average price of $570.78 and a two-hundred day moving average price of $490.67. The company has a market cap of $74.55 billion, a PE ratio of 26.30, a P/E/G ratio of 1.71 and a beta of 1.12.

Cummins (NYSE:CMI) last issued its earnings results on Thursday, February 5th. The company reported $5.81 earnings per share for the quarter, topping analysts’ consensus estimates of $5.17 by $0.64. Cummins had a net margin of 8.44% and a return on equity of 25.71%. The company had revenue of $8.54 billion for the quarter, compared to analysts’ expectations of $8.09 billion. During the same period in the prior year, the company earned $5.16 earnings per share. The firm’s revenue was up 1.1% compared to the same quarter last year. Research analysts expect that Cummins will post 22.54 earnings per share for the current year.

Insiders Place Their Bets

In related news, Director William I. Miller sold 18,107 shares of the stock in a transaction that occurred on Wednesday, February 11th. The stock was sold at an average price of $597.10, for a total value of $10,811,689.70. Following the completion of the transaction, the director directly owned 34,243 shares of the company’s stock, valued at $20,446,495.30. This represents a 34.59% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, VP Donald G. Jackson sold 1,600 shares of Cummins stock in a transaction on Tuesday, February 24th. The shares were sold at an average price of $600.13, for a total value of $960,208.00. Following the sale, the vice president directly owned 7,214 shares in the company, valued at $4,329,337.82. The trade was a 18.15% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders sold 31,195 shares of company stock worth $18,397,489. 0.41% of the stock is owned by company insiders.

Institutional Investors Weigh In On Cummins

Institutional investors have recently bought and sold shares of the stock. Brighton Jones LLC boosted its holdings in shares of Cummins by 4.1% in the fourth quarter. Brighton Jones LLC now owns 2,112 shares of the company’s stock valued at $736,000 after acquiring an additional 83 shares in the last quarter. Intech Investment Management LLC raised its holdings in Cummins by 40.8% during the first quarter. Intech Investment Management LLC now owns 3,956 shares of the company’s stock worth $1,240,000 after purchasing an additional 1,146 shares in the last quarter. Wedbush Securities Inc. raised its holdings in Cummins by 5.7% during the second quarter. Wedbush Securities Inc. now owns 1,518 shares of the company’s stock worth $497,000 after purchasing an additional 82 shares in the last quarter. KCM Investment Advisors LLC lifted its position in Cummins by 2.4% in the second quarter. KCM Investment Advisors LLC now owns 2,003 shares of the company’s stock worth $656,000 after purchasing an additional 47 shares during the period. Finally, Penserra Capital Management LLC lifted its position in Cummins by 13.0% in the second quarter. Penserra Capital Management LLC now owns 756 shares of the company’s stock worth $246,000 after purchasing an additional 87 shares during the period. Institutional investors and hedge funds 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.