Cummins (CMI) Downgraded to “Hold” at Zacks Investment Research

Zacks Investment Research cut shares of Cummins (NYSE:CMI) from a buy rating to a hold rating in a report released on Tuesday.

According to Zacks, “Cummins is poised to gain from Johnson Matthey’s UK automotive battery business acquisition. The acquisition will widen its energy storage product range, enabling it to be a leader in electrified power. Also, the company’s new innovative products and strategies launches will boost financials. In 2018, the company expects high profitability on the basis of higher sales and cost reduction initiatives. It has provided a bullish outlook for the current year. In 2017, Cummins has also achieved its target of returning 50% of full-year operating cash flow to its shareholders in the form of share repurchases and dividends to boost their confidence in the company. Also, it plans to achieve the same target in 2018 as well.”

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Other equities research analysts have also issued research reports about the stock. Wells Fargo reiterated a buy rating and set a $195.00 price objective (down previously from $210.00) on shares of Cummins in a research note on Thursday, February 22nd. Bank of America upgraded shares of Cummins from a neutral rating to a buy rating and set a $215.00 price objective on the stock in a research note on Friday, January 19th. ValuEngine upgraded shares of Cummins from a hold rating to a buy rating in a research note on Friday, February 2nd. TheStreet lowered shares of Cummins from a b rating to a c+ rating in a research note on Tuesday, February 6th. Finally, Barclays restated an equal weight rating and issued a $191.00 price target (up previously from $180.00) on shares of Cummins in a research note on Wednesday, January 24th. One equities research analyst has rated the stock with a sell rating, fifteen have issued a hold rating and seven have given a buy rating to the stock. The company has an average rating of Hold and a consensus target price of $184.21.

CMI opened at $161.40 on Tuesday. The stock has a market cap of $28,003.79, a P/E ratio of 15.19, a price-to-earnings-growth ratio of 1.17 and a beta of 1.22. Cummins has a fifty-two week low of $149.85 and a fifty-two week high of $194.18. The company has a current ratio of 1.57, a quick ratio of 1.01 and a debt-to-equity ratio of 0.19.

Cummins (NYSE:CMI) last released its quarterly earnings data on Tuesday, February 6th. The company reported $3.03 earnings per share for the quarter, topping the consensus estimate of $2.65 by $0.38. The firm had revenue of $5.48 billion for the quarter, compared to analyst estimates of $5.23 billion. Cummins had a net margin of 4.89% and a return on equity of 22.18%. Cummins’s quarterly revenue was up 21.6% on a year-over-year basis. During the same quarter in the prior year, the business earned $2.25 earnings per share. sell-side analysts predict that Cummins will post 12.62 earnings per share for the current fiscal year.

Several institutional investors have recently bought and sold shares of the company. Advisor Partners LLC boosted its holdings in shares of Cummins by 8.1% in the fourth quarter. Advisor Partners LLC now owns 3,596 shares of the company’s stock valued at $680,000 after acquiring an additional 269 shares in the last quarter. Parallel Advisors LLC boosted its holdings in shares of Cummins by 6.4% in the fourth quarter. Parallel Advisors LLC now owns 5,004 shares of the company’s stock valued at $884,000 after acquiring an additional 303 shares in the last quarter. Baird Financial Group Inc. boosted its holdings in shares of Cummins by 1.1% in the fourth quarter. Baird Financial Group Inc. now owns 28,069 shares of the company’s stock valued at $4,958,000 after acquiring an additional 310 shares in the last quarter. Kessler Investment Group LLC boosted its holdings in shares of Cummins by 1.8% in the fourth quarter. Kessler Investment Group LLC now owns 18,785 shares of the company’s stock valued at $3,318,000 after acquiring an additional 329 shares in the last quarter. Finally, Jacobs & Co. CA boosted its holdings in shares of Cummins by 1.3% in the fourth quarter. Jacobs & Co. CA now owns 25,673 shares of the company’s stock valued at $4,483,000 after acquiring an additional 330 shares in the last quarter. Institutional investors and hedge funds own 83.50% of the company’s stock.

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About Cummins

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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