Cummins (NYSE:CMI) Stock Rating Lowered by StockNews.com

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

Several other brokerages also recently commented on CMI. The Goldman Sachs Group upped their price objective on shares of Cummins from $270.00 to $306.00 and gave the company a neutral rating in a research note on Tuesday, April 16th. Truist Financial assumed coverage on Cummins in a report on Thursday, March 14th. They issued a hold rating and a $303.00 price objective for the company. UBS Group raised Cummins from a neutral rating to a buy rating and boosted their target price for the company from $254.00 to $321.00 in a research note on Friday, March 15th. Morgan Stanley began coverage on Cummins in a research note on Monday, January 8th. They issued an overweight rating and a $278.00 price target for the company. Finally, Bank of America cut shares of Cummins from a neutral rating to an underperform rating and cut their price target for the company from $243.00 to $225.00 in a report on Friday, January 19th. Two analysts have rated the stock with a sell rating, five have given a hold rating and five have issued a buy rating to the company. According to MarketBeat, the company presently has a consensus rating of Hold and an average price target of $282.55.

Cummins Price Performance

CMI opened at $280.74 on Tuesday. The company has a debt-to-equity ratio of 0.48, a current ratio of 1.18 and a quick ratio of 0.74. The stock’s 50 day simple moving average is $285.06 and its 200 day simple moving average is $252.19. The firm has a market cap of $38.39 billion, a price-to-earnings ratio of 54.20, a PEG ratio of 1.93 and a beta of 1.04. Cummins has a 1 year low of $203.18 and a 1 year high of $304.24.

Cummins (NYSE:CMI) last issued its earnings results on Tuesday, February 6th. The company reported $4.14 earnings per share (EPS) 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 firm had revenue of $8.54 billion during the quarter, compared to the consensus estimate of $8.10 billion. During the same quarter in the prior year, the business posted $4.52 EPS. The firm’s revenue for the quarter was up 9.9% on a year-over-year basis. As a group, analysts predict that Cummins will post 18.34 earnings per share for the current year.

Cummins Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Thursday, March 7th. Investors of record on Friday, February 23rd were given a dividend of $1.68 per share. The ex-dividend date of this dividend was Thursday, February 22nd. This represents a $6.72 dividend on an annualized basis and a yield of 2.39%. Cummins’s dividend payout ratio (DPR) is currently 129.73%.

Insider Buying and Selling

In other Cummins news, SVP Tony Satterthwaite sold 37,450 shares of the firm’s stock in a transaction that occurred on Wednesday, February 21st. The shares were sold at an average price of $265.05, for a total transaction of $9,926,122.50. Following the completion of the transaction, the senior vice president now owns 73,741 shares of the company’s stock, valued at $19,545,052.05. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. In related news, VP Sharon R. Barner sold 11,000 shares of the company’s stock in a transaction dated Thursday, February 15th. The shares were sold at an average price of $262.16, for a total value of $2,883,760.00. Following the transaction, 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 SEC, which is accessible through the SEC website. Also, SVP Tony Satterthwaite sold 37,450 shares of the stock in a transaction dated Wednesday, February 21st. The shares were sold at an average price of $265.05, for a total transaction of $9,926,122.50. Following the sale, the senior vice president now directly owns 73,741 shares in the company, valued at $19,545,052.05. The disclosure for this sale can be found here. Insiders have sold 51,289 shares of company stock valued at $13,576,838 over the last quarter. Corporate insiders own 0.56% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently made changes to their positions in the company. First United Bank & Trust purchased a new position in Cummins in the 4th quarter worth approximately $25,000. Private Wealth Management Group LLC purchased a new stake in shares of Cummins during the fourth quarter valued at $26,000. JNBA Financial Advisors grew its stake in shares of Cummins by 1,111.1% in the first quarter. JNBA Financial Advisors now owns 109 shares of the company’s stock worth $32,000 after acquiring an additional 100 shares during the period. OFI Invest Asset Management purchased a new position in shares of Cummins during the third quarter valued at approximately $25,000. Finally, Silver Oak Securities Incorporated bought a new position in Cummins during the third quarter valued at approximately $28,000. Institutional investors own 83.46% of the company’s stock.

About Cummins

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.