Other research analysts have also issued research reports about the company. Standpoint Research raised Cummins from a hold rating to a buy rating in a research report on Monday, June 18th. Zacks Investment Research raised Cummins from a hold rating to a buy rating and set a $148.00 price target on the stock in a research report on Tuesday, July 3rd. Wells Fargo & Co set a $158.00 price target on Cummins and gave the stock a hold rating in a research report on Wednesday, August 1st. Mizuho started coverage on Cummins in a research report on Friday, June 29th. They set a neutral rating and a $150.00 price target on the stock. Finally, Citigroup lowered their price target on Cummins from $160.00 to $150.00 and set a neutral rating on the stock in a research report on Monday, June 25th. Four research analysts have rated the stock with a sell rating, fifteen have assigned a hold rating and seven have issued a buy rating to the company’s stock. The stock currently has a consensus rating of Hold and a consensus target price of $167.48.
Shares of NYSE:CMI traded down $1.60 during trading on Wednesday, hitting $146.26. 79,612 shares of the company were exchanged, compared to its average volume of 1,513,828. The firm has a market capitalization of $24.07 billion, a price-to-earnings ratio of 13.82, a price-to-earnings-growth ratio of 0.84 and a beta of 1.12. Cummins has a fifty-two week low of $129.90 and a fifty-two week high of $194.18. The company has a quick ratio of 1.03, a current ratio of 1.61 and a debt-to-equity ratio of 0.19.
Cummins (NYSE:CMI) last posted its quarterly earnings results on Tuesday, July 31st. The company reported $3.32 earnings per share for the quarter, missing the Thomson Reuters’ consensus estimate of $3.63 by ($0.31). The company had revenue of $6.13 billion for the quarter, compared to analyst estimates of $5.81 billion. Cummins had a return on equity of 26.30% and a net margin of 4.67%. The firm’s revenue for the quarter was up 20.8% compared to the same quarter last year. During the same period last year, the firm earned $2.53 EPS. As a group, analysts anticipate that Cummins will post 14.94 earnings per share for the current year.
The company also recently declared a quarterly dividend, which will be paid on Monday, December 3rd. Investors of record on Thursday, November 15th will be paid a $1.14 dividend. This represents a $4.56 annualized dividend and a yield of 3.12%. Cummins’s dividend payout ratio (DPR) is presently 42.94%.
Cummins announced that its board has initiated a stock buyback plan on Tuesday, October 9th that permits the company to repurchase $2.00 billion in shares. This repurchase authorization permits the company to purchase up to 8.3% of its stock through open market purchases. Stock repurchase plans are often a sign that the company’s board of directors believes its stock is undervalued.
In related news, VP Tracy A. Embree sold 462 shares of the business’s stock in a transaction on Monday, August 6th. The stock was sold at an average price of $141.70, for a total value of $65,465.40. Following the completion of the sale, the vice president now directly owns 4,122 shares in the company, valued at approximately $584,087.40. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Alexis M. Herman sold 735 shares of the business’s stock in a transaction on Friday, August 3rd. The shares were sold at an average price of $139.90, for a total value of $102,826.50. The disclosure for this sale can be found here. Insiders sold a total of 26,087 shares of company stock valued at $3,914,211 over the last 90 days. 0.67% of the stock is currently owned by corporate insiders.
A number of institutional investors and hedge funds have recently added to or reduced their stakes in the stock. DNB Asset Management AS increased its stake in shares of Cummins by 1.1% in the third quarter. DNB Asset Management AS now owns 42,856 shares of the company’s stock valued at $6,260,000 after buying an additional 450 shares during the period. Manning & Napier Group LLC boosted its position in shares of Cummins by 4.8% during the 3rd quarter. Manning & Napier Group LLC now owns 43,704 shares of the company’s stock valued at $6,383,000 after purchasing an additional 2,000 shares in the last quarter. Lourd Capital LLC bought a new stake in shares of Cummins during the 3rd quarter valued at about $329,000. Beech Hill Advisors Inc. bought a new stake in shares of Cummins during the 3rd quarter valued at about $4,085,000. Finally, Gyroscope Capital Management Group LLC bought a new stake in shares of Cummins during the 3rd quarter valued at about $8,218,000. Institutional investors and hedge funds own 79.26% of the company’s stock.
Cummins Inc designs, manufactures, distributes, and services diesel and natural gas engines, and engine-related component products worldwide. It operates through four segments: Engine, Distribution, Components, and Power Systems segments. The Engine segment manufactures and markets a range of 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.
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