Zacks Investment Research Downgrades Cummins Inc. (CMI) to Hold
Cummins Inc. (NYSE:CMI) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a report issued on Tuesday.
According to Zacks, “Zacks Consensus Estimate for Cummins’ quarterly earnings has remained unchanged of late. The company expects to witness a growing trend in its truck and construction products’ demand, along with growth in global mining customers, which will have a positive impact on its sales figure. The company is also developing a Class 7 heavy-duty electric truck having a 140 kWh battery pack, to cater bus and commercial truck operators. Moreover, it has also provided an improved outlook for fiscal 2017. The company is also poised to benefit from its business expansions in China and acquisitions and partnerships in North America. Also, its shares have outperformed against the industry, year to date. However, challenging market condition, currency headwinds and high warranty costs might dent the financials of Cummins.”
CMI has been the subject of a number of other reports. Deutsche Bank AG boosted their target price on shares of Cummins from $139.00 to $142.00 and gave the stock a “sell” rating in a report on Tuesday, July 4th. Jefferies Group LLC reiterated a “hold” rating and issued a $165.00 target price on shares of Cummins in a report on Thursday, September 7th. ValuEngine downgraded shares of Cummins from a “buy” rating to a “hold” rating in a report on Tuesday, August 1st. Piper Jaffray Companies reiterated a “hold” rating and issued a $159.00 target price on shares of Cummins in a report on Tuesday, September 12th. Finally, Goldman Sachs Group, Inc. (The) downgraded shares of Cummins from a “conviction-buy” rating to a “buy” rating and set a $192.00 target price for the company. in a report on Monday, August 7th. One analyst has rated the stock with a sell rating, ten have issued a hold rating and seven have assigned a buy rating to the stock. The stock currently has a consensus rating of “Hold” and an average target price of $162.02.
Shares of Cummins (CMI) traded down 0.2838% during mid-day trading on Tuesday, reaching $171.2625. 204,896 shares of the company traded hands. Cummins has a 52 week low of $121.22 and a 52 week high of $172.72. The stock has a market capitalization of $28.60 billion, a PE ratio of 19.3583 and a beta of 1.13. The firm has a 50 day moving average of $161.77 and a 200-day moving average of $158.27.
Cummins (NYSE:CMI) last announced its earnings results on Tuesday, August 1st. The company reported $2.53 EPS for the quarter, missing the Zacks’ consensus estimate of $2.58 by ($0.05). The firm had revenue of $5.08 billion during the quarter, compared to the consensus estimate of $4.80 billion. Cummins had a return on equity of 20.67% and a net margin of 8.10%. The business’s revenue for the quarter was up 12.1% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $2.40 earnings per share. On average, equities research analysts expect that Cummins will post $7.98 EPS for the current fiscal year.
In related news, insider Jill E. Cook sold 7,000 shares of the company’s stock in a transaction that occurred on Monday, July 24th. The stock was sold at an average price of $165.86, for a total value of $1,161,020.00. Following the sale, the insider now owns 9,671 shares in the company, valued at $1,604,032.06. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, Director Franklin R. Changdiaz sold 1,633 shares of the company’s stock in a transaction that occurred on Wednesday, August 9th. The shares were sold at an average price of $159.27, for a total value of $260,087.91. Following the completion of the sale, the director now owns 5,814 shares in the company, valued at approximately $925,995.78. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 17,633 shares of company stock worth $2,942,108. Corporate insiders own 0.62% of the company’s stock.
Hedge funds and other institutional investors have recently modified their holdings of the stock. Carroll Financial Associates Inc. boosted its position in Cummins by 13.4% in the second quarter. Carroll Financial Associates Inc. now owns 702 shares of the company’s stock valued at $113,000 after buying an additional 83 shares during the last quarter. Captrust Financial Advisors purchased a new stake in Cummins in the second quarter valued at approximately $137,000. First Interstate Bank boosted its position in Cummins by 26.3% in the first quarter. First Interstate Bank now owns 931 shares of the company’s stock valued at $141,000 after buying an additional 194 shares during the last quarter. Acrospire Investment Management LLC purchased a new stake in Cummins in the second quarter valued at approximately $146,000. Finally, Harbour Capital Advisors LLC purchased a new stake in Cummins in the first quarter valued at approximately $150,000. Hedge funds and other institutional investors own 80.38% of the company’s stock.
Cummins Inc designs, manufactures, distributes and services diesel and natural gas engines and engine-related component products. The Company’s segments include Engine, Distribution, Components and Power Systems. The Engine segment manufactures and markets a range of diesel and natural gas powered engines under the Cummins brand name, as well as certain customer brand names, for the heavy and medium-duty truck, bus, recreational vehicle (RV), light-duty automotive and agricultural markets.
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