Zacks Investment Research upgraded shares of Cummins (NYSE:CMI) from a hold rating to a buy rating in a research report released on Friday morning, Zacks.com reports. Zacks Investment Research currently has $185.00 target price on the stock.
According to Zacks, “In the first quarter of 2019, Cummins’ earnings and revenues surpassed the respective Zacks Consensus Estimate. Further, the figures witnessed a year over year growth. Increased truck production and improved market share in North America along with increased power generation equipment sales and global demand for construction equipment are driving Cummins financials. Similar to the prior year, the company aims to return 75% of operating cash flow to shareholders. Partnerships, product development and business acquisitions will likely expand the company’s reach across all end-markets. However, softening truck volume in China, India and Europe are likely to hurt Cummins’ top line. In 2019, lowering demand in these markets isexpected to hamper performance. Also, rising R&D expenses for product launches and high material costs are other headwinds.”
CMI has been the topic of several other research reports. Mizuho set a $155.00 price objective on shares of Cummins and gave the company a hold rating in a research report on Saturday, February 9th. CIBC restated a market perform rating on shares of Cummins in a research report on Thursday, February 7th. Piper Jaffray Companies set a $195.00 price target on shares of Cummins and gave the stock a buy rating in a research report on Thursday, April 4th. Oppenheimer restated a market perform rating and issued a $164.00 price target on shares of Cummins in a research report on Thursday, February 7th. Finally, Credit Suisse Group restated a buy rating and issued a $168.00 price target on shares of Cummins in a research report on Tuesday, January 22nd. One investment analyst has rated the stock with a sell rating, eleven have assigned a hold rating and eight have given a buy rating to the stock. Cummins has a consensus rating of Hold and a consensus price target of $166.16.
Cummins stock opened at $167.60 on Friday. The company has a market cap of $26.40 billion, a PE ratio of 12.67, a P/E/G ratio of 1.26 and a beta of 1.10. The company has a current ratio of 1.57, a quick ratio of 0.95 and a debt-to-equity ratio of 0.18. Cummins has a 1 year low of $124.40 and a 1 year high of $169.45.
Cummins (NYSE:CMI) last released its quarterly earnings data on Tuesday, April 30th. The company reported $4.20 earnings per share (EPS) for the quarter, beating the consensus estimate of $3.51 by $0.69. The firm had revenue of $6 billion for the quarter, compared to analysts’ expectations of $5.80 billion. Cummins had a net margin of 10.24% and a return on equity of 30.72%. The company’s revenue for the quarter was up 7.8% compared to the same quarter last year. During the same quarter last year, the business posted $3.30 earnings per share. As a group, analysts anticipate that Cummins will post 16.19 earnings per share for the current fiscal year.
In other Cummins news, VP Tracy A. Embree sold 206 shares of the business’s stock in a transaction on Wednesday, February 6th. The shares were sold at an average price of $150.00, for a total transaction of $30,900.00. Following the transaction, the vice president now owns 4,221 shares in the company, valued at $633,150. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Also, insider Srikanth Padmanabhan sold 1,687 shares of the business’s stock in a transaction on Monday, March 18th. The shares were sold at an average price of $160.00, for a total transaction of $269,920.00. The disclosure for this sale can be found here. Insiders have sold 2,316 shares of company stock worth $364,321 in the last quarter. Company insiders own 0.95% of the company’s stock.
A number of hedge funds have recently bought and sold shares of CMI. Martingale Asset Management L P increased its position in Cummins by 11.2% during the third quarter. Martingale Asset Management L P now owns 30,761 shares of the company’s stock valued at $4,494,000 after acquiring an additional 3,101 shares during the last quarter. Nordea Investment Management AB boosted its stake in shares of Cummins by 2.1% during the third quarter. Nordea Investment Management AB now owns 1,354,117 shares of the company’s stock valued at $197,801,000 after purchasing an additional 27,494 shares during the period. Legal & General Group Plc boosted its stake in shares of Cummins by 7.2% during the third quarter. Legal & General Group Plc now owns 887,408 shares of the company’s stock valued at $129,624,000 after purchasing an additional 59,419 shares during the period. Morgan Stanley boosted its stake in shares of Cummins by 5.3% during the third quarter. Morgan Stanley now owns 1,727,365 shares of the company’s stock valued at $252,315,000 after purchasing an additional 86,791 shares during the period. Finally, Great Lakes Advisors LLC purchased a new stake in shares of Cummins during the third quarter valued at $1,383,000. Institutional investors and hedge funds own 82.69% 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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