Cummins Inc. (NYSE:CMI) – Investment analysts at Piper Jaffray Companies cut their Q4 2019 earnings per share estimates for shares of Cummins in a research note issued on Tuesday, October 30th. Piper Jaffray Companies analyst A. Potter now expects that the company will post earnings of $4.25 per share for the quarter, down from their previous forecast of $4.27. Piper Jaffray Companies currently has a “Overweight” rating and a $188.00 target price on the stock. Piper Jaffray Companies also issued estimates for Cummins’ FY2022 earnings at $15.52 EPS.
Several other equities analysts have also issued reports on CMI. Zacks Investment Research lowered Cummins from a “buy” rating to a “hold” rating in a report on Wednesday, July 4th. JPMorgan Chase & Co. lowered Cummins from a “neutral” rating to an “underweight” rating and reduced their target price for the company from $156.00 to $137.00 in a report on Friday, August 24th. Wells Fargo & Co set a $158.00 target price on Cummins and gave the company a “hold” rating in a report on Wednesday, August 1st. ValuEngine raised Cummins from a “strong sell” rating to a “sell” rating in a report on Friday, September 21st. Finally, Stifel Nicolaus set a $156.00 target price on Cummins and gave the company a “buy” rating in a report on Monday, September 10th. Two equities research analysts have rated the stock with a sell rating, sixteen have given a hold rating and eight have assigned a buy rating to the company’s stock. Cummins currently has an average rating of “Hold” and an average target price of $164.77.
Cummins (NYSE:CMI) last issued its quarterly earnings data on Tuesday, October 30th. The company reported $4.05 EPS for the quarter, topping analysts’ consensus estimates of $3.76 by $0.29. The firm had revenue of $5.94 billion during the quarter, compared to analyst estimates of $5.96 billion. Cummins had a return on equity of 29.17% and a net margin of 5.57%. The company’s revenue for the quarter was up 12.5% on a year-over-year basis. During the same period in the previous year, the company posted $2.71 EPS.
Cummins announced that its Board of Directors has initiated a share buyback program on Tuesday, October 9th that allows the company to repurchase $2.00 billion in outstanding shares. This repurchase authorization allows the company to buy up to 8.3% of its stock through open market purchases. Stock repurchase programs are typically a sign that the company’s board believes its stock is undervalued.
The company also recently disclosed 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. The ex-dividend date is Wednesday, November 14th. This represents a $4.56 annualized dividend and a yield of 3.29%. Cummins’s payout ratio is 42.94%.
In other Cummins news, VP Tracy A. Embree sold 462 shares of the stock in a transaction on Monday, August 6th. The stock was sold at an average price of $141.70, for a total transaction of $65,465.40. Following the sale, the vice president now owns 4,122 shares in the company, valued at $584,087.40. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, Director Alexis M. Herman sold 735 shares of the stock in a transaction on Friday, August 3rd. The stock was 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. In the last quarter, insiders sold 26,087 shares of company stock worth $3,914,211. 0.62% of the stock is owned by company insiders.
Several large investors have recently bought and sold shares of CMI. Edge Wealth Management LLC purchased a new stake in shares of Cummins during the third quarter worth $102,000. Migdal Insurance & Financial Holdings Ltd. lifted its position in shares of Cummins by 5,873.3% during the second quarter. Migdal Insurance & Financial Holdings Ltd. now owns 896 shares of the company’s stock worth $119,000 after acquiring an additional 881 shares in the last quarter. MHI Funds LLC purchased a new stake in shares of Cummins in the second quarter worth $147,000. Qube Research & Technologies Ltd purchased a new stake in shares of Cummins in the second quarter worth $155,000. Finally, Centaurus Financial Inc. raised its position in shares of Cummins by 73.2% in the second quarter. Centaurus Financial Inc. now owns 1,230 shares of the company’s stock worth $164,000 after buying an additional 520 shares in the last quarter. Hedge funds and other institutional investors own 79.42% of the company’s stock.
Cummins Company Profile
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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