Cummins (CMI) Stock Rating Reaffirmed by Wells Fargo & Co

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Cummins (NYSE:CMI)‘s stock had its “hold” rating reissued by stock analysts at Wells Fargo & Co in a research note issued on Tuesday.

A number of other brokerages also recently issued reports on CMI. ValuEngine raised shares of Cummins from a “strong sell” rating to a “sell” rating in a report on Friday, September 21st. Stifel Nicolaus increased their price target on shares of Cummins from $172.00 to $174.00 and gave the stock a “buy” rating in a report on Wednesday, October 10th. Piper Jaffray Companies raised shares of Cummins from a “neutral” rating to an “overweight” rating and increased their price target for the stock from $143.00 to $188.00 in a report on Thursday, October 4th. Bank of America increased their price target on shares of Cummins from $157.00 to $160.00 and gave the stock a “neutral” rating in a report on Tuesday, October 9th. Finally, Zacks Investment Research raised shares of Cummins from a “hold” rating to a “buy” rating and set a $166.00 price target on the stock in a report on Wednesday, September 26th. Three analysts have rated the stock with a sell rating, fifteen have given a hold rating and eight have issued a buy rating to the company. Cummins presently has an average rating of “Hold” and a consensus target price of $166.36.

Shares of Cummins stock opened at $134.40 on Tuesday. Cummins has a 12-month low of $124.72 and a 12-month high of $194.18. The stock has a market capitalization of $21.22 billion, a PE ratio of 12.66, a PEG ratio of 0.73 and a beta of 1.12. The company has a current ratio of 1.61, a quick ratio of 1.03 and a debt-to-equity ratio of 0.19.

Cummins (NYSE:CMI) last announced its quarterly earnings results on Tuesday, October 30th. The company reported $4.05 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $3.69 by $0.36. Cummins had a net margin of 4.67% and a return on equity of 26.30%. The firm had revenue of $5.94 billion for the quarter, compared to the consensus estimate of $5.96 billion. During the same period in the prior year, the firm posted $2.71 earnings per share. The company’s revenue for the quarter was up 12.5% on a year-over-year basis. On average, analysts anticipate that Cummins will post 15 earnings per share for the current year.

Cummins declared that its board has authorized a stock buyback program on Tuesday, October 9th that authorizes the company to repurchase $2.00 billion in outstanding shares. This repurchase authorization authorizes the company to repurchase up to 8.3% of its stock through open market purchases. Stock repurchase programs are typically an indication that the company’s management believes its shares are undervalued.

In related news, VP Tracy A. Embree sold 462 shares of the company’s stock in a transaction that occurred on Monday, August 6th. The shares were sold at an average price of $141.70, for a total value of $65,465.40. Following the transaction, the vice president now directly owns 4,122 shares in the company, valued at $584,087.40. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, VP Mark Andrew Smith sold 501 shares of the company’s stock in a transaction that occurred on Tuesday, October 9th. The stock was sold at an average price of $153.27, for a total transaction of $76,788.27. Following the completion of the transaction, the vice president now owns 4,463 shares in the company, valued at $684,044.01. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 26,087 shares of company stock worth $3,914,211. 0.67% of the stock is owned by company insiders.

Several hedge funds have recently bought and sold shares of the stock. Acropolis Investment Management LLC grew its position in Cummins by 6.9% during the third quarter. Acropolis Investment Management LLC now owns 5,302 shares of the company’s stock valued at $774,000 after acquiring an additional 340 shares during the last quarter. Security National Bank of SO Dak grew its position in Cummins by 7.2% during the second quarter. Security National Bank of SO Dak now owns 5,372 shares of the company’s stock valued at $714,000 after acquiring an additional 360 shares during the last quarter. BRYN MAWR TRUST Co grew its position in Cummins by 4.1% during the second quarter. BRYN MAWR TRUST Co now owns 9,410 shares of the company’s stock valued at $1,252,000 after acquiring an additional 369 shares during the last quarter. Essex Financial Services Inc. grew its position in Cummins by 10.0% during the second quarter. Essex Financial Services Inc. now owns 4,332 shares of the company’s stock valued at $576,000 after acquiring an additional 395 shares during the last quarter. Finally, Jag Capital Management LLC grew its position in Cummins by 3.8% during the second quarter. Jag Capital Management LLC now owns 10,899 shares of the company’s stock valued at $1,450,000 after acquiring an additional 402 shares during the last quarter. Institutional investors own 79.42% of the company’s stock.

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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Analyst Recommendations for Cummins (NYSE:CMI)

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