Cummins (CMI) Upgraded at Robert W. Baird

Robert W. Baird upgraded shares of Cummins (NYSE:CMI) from an underperform rating to a neutral rating in a research note issued to investors on Wednesday morning, MarketBeat.com reports.

Several other equities research analysts have also issued reports on CMI. Zacks Investment Research upgraded shares of Cummins from a hold rating to a buy rating and set a $148.00 target price for the company in a report on Tuesday, July 3rd. Stifel Nicolaus upgraded shares of Cummins from a hold rating to a buy rating and lowered their target price for the stock from $174.00 to $160.00 in a report on Tuesday, July 10th. Oppenheimer lowered their target price on shares of Cummins from $168.00 to $192.00 and set an outperform rating for the company in a report on Monday, July 23rd. Wells Fargo & Co set a $158.00 target price on shares of Cummins and gave the stock a hold rating in a report on Wednesday, August 1st. Finally, Credit Suisse Group lowered their target price on shares of Cummins from $175.00 to $171.00 and set an outperform rating for the company in a report on Wednesday, August 1st. Two analysts have rated the stock with a sell rating, fourteen have given a hold rating and eight have issued a buy rating to the company’s stock. The stock presently has an average rating of Hold and a consensus price target of $163.60.

Shares of Cummins stock traded down $0.36 during trading on Wednesday, hitting $141.83. The stock had a trading volume of 1,355,994 shares, compared to its average volume of 1,941,929. The firm has a market capitalization of $21.95 billion, a PE ratio of 13.35, a price-to-earnings-growth ratio of 0.76 and a beta of 1.16. The company has a current ratio of 1.54, a quick ratio of 1.03 and a debt-to-equity ratio of 0.19. Cummins has a 12 month low of $124.72 and a 12 month high of $194.18.

Cummins (NYSE:CMI) last released its earnings results on Tuesday, October 30th. The company reported $4.05 earnings per share (EPS) for the quarter, topping the Thomson Reuters’ consensus estimate 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 net margin of 5.57% and a return on equity of 29.17%. The business’s revenue was up 12.5% on a year-over-year basis. During the same quarter last year, the business earned $2.71 EPS. As a group, sell-side analysts predict that Cummins will post 15.33 earnings per share for the current fiscal year.

Cummins announced that its Board of Directors has authorized a share repurchase plan on Tuesday, October 9th that authorizes the company to buyback $2.00 billion in shares. This buyback authorization authorizes the company to reacquire up to 8.3% of its stock through open market purchases. Stock buyback plans are generally a sign that the company’s board of directors believes its stock is undervalued.

The business also recently disclosed a quarterly dividend, which will be paid on Monday, December 3rd. Investors of record on Thursday, November 15th will be issued a dividend of $1.14 per share. The ex-dividend date is Wednesday, November 14th. This represents a $4.56 dividend on an annualized basis and a yield of 3.22%. Cummins’s payout ratio is 42.94%.

In other Cummins news, VP Mark Andrew Smith sold 501 shares of the firm’s stock in a transaction dated Tuesday, October 9th. The shares were sold at an average price of $153.27, for a total transaction of $76,788.27. Following the transaction, the vice president now owns 4,463 shares of the company’s stock, valued at approximately $684,044.01. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, VP Tracy A. Embree sold 462 shares of the firm’s stock in a transaction dated Monday, August 6th. The shares were sold at an average price of $141.70, for a total transaction of $65,465.40. Following the transaction, the vice president now directly owns 4,122 shares in the company, valued at approximately $584,087.40. The disclosure for this sale can be found here. Insiders have sold a total of 25,352 shares of company stock valued at $3,811,385 in the last quarter. 0.62% of the stock is currently owned by company insiders.

A number of hedge funds and other institutional investors have recently bought and sold shares of CMI. Edge Wealth Management LLC purchased a new position in Cummins during the 3rd quarter valued at about $102,000. Migdal Insurance & Financial Holdings Ltd. increased its position in Cummins by 5,873.3% during the 2nd quarter. Migdal Insurance & Financial Holdings Ltd. now owns 896 shares of the company’s stock valued at $119,000 after purchasing an additional 881 shares during the period. MHI Funds LLC purchased a new position in Cummins during the 2nd quarter valued at about $147,000. Qube Research & Technologies Ltd purchased a new position in Cummins during the 2nd quarter valued at about $155,000. Finally, Centaurus Financial Inc. increased its position in Cummins by 73.2% during the 2nd quarter. Centaurus Financial Inc. now owns 1,230 shares of the company’s stock valued at $164,000 after purchasing an additional 520 shares during the period. 79.42% of the stock is currently owned by institutional investors and hedge funds.

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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Analyst Recommendations for Cummins (NYSE:CMI)

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