Cummins (CMI) Upgraded to “Sell” at ValuEngine

Cummins (NYSE:CMI) was upgraded by research analysts at ValuEngine from a “strong sell” rating to a “sell” rating in a report issued on Thursday.

A number of other analysts have also commented on the company. Zacks Investment Research raised Cummins from a “hold” rating to a “buy” rating and set a $166.00 price target on the stock in a research note on Wednesday, September 26th. Stifel Nicolaus reissued a “buy” rating and set a $172.00 price target on shares of Cummins in a research note on Monday, October 1st. JPMorgan Chase & Co. lowered Cummins from a “neutral” rating to an “underweight” rating and cut their price target for the company from $156.00 to $137.00 in a research note on Friday, August 24th. Bank of America lifted their price target on Cummins from $157.00 to $160.00 and gave the company a “neutral” rating in a research note on Tuesday, October 9th. Finally, Piper Jaffray Companies raised Cummins from a “neutral” rating to an “overweight” rating and lifted their price target for the company from $143.00 to $188.00 in a research note on Thursday, October 4th. Two investment analysts have rated the stock with a sell rating, fourteen have assigned a hold rating and eight have issued a buy rating to the company. The stock presently has a consensus rating of “Hold” and an average price target of $163.30.

Shares of CMI stock traded down $0.48 during mid-day trading on Thursday, reaching $146.25. 1,176,705 shares of the stock traded hands, compared to its average volume of 1,547,613. Cummins has a 1-year low of $124.72 and a 1-year high of $194.18. The firm has a market capitalization of $23.30 billion, a price-to-earnings ratio of 13.77, a PEG ratio of 0.79 and a beta of 1.16. The company has a current ratio of 1.54, a quick ratio of 0.94 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 EPS for the quarter, beating the Zacks’ consensus estimate of $3.76 by $0.29. Cummins had a return on equity of 29.17% and a net margin of 5.57%. The firm had revenue of $5.94 billion for the quarter, compared to analyst estimates of $5.96 billion. During the same period last year, the firm posted $2.71 earnings per share. The business’s revenue for the quarter was up 12.5% on a year-over-year basis. On average, sell-side analysts predict that Cummins will post 15.34 earnings per share for the current fiscal year.

Cummins declared that its board has approved a share 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 purchase up to 8.3% of its shares through open market purchases. Shares repurchase programs are typically an indication that the company’s board of directors believes its shares are undervalued.

In other Cummins news, Director Alexis M. Herman sold 775 shares of Cummins stock in a transaction that occurred on Monday, November 5th. The stock was sold at an average price of $143.64, for a total value of $111,321.00. Following the completion of the sale, the director now directly owns 30,069 shares in the company, valued at $4,319,111.16. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, VP Mark Andrew Smith sold 501 shares of Cummins stock in a transaction that occurred on Tuesday, October 9th. The stock was sold at an average price of $153.27, for a total value of $76,788.27. Following the completion of the sale, the vice president now owns 4,463 shares of the company’s stock, valued at $684,044.01. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 26,495 shares of company stock worth $3,974,777. 0.62% of the stock is owned by insiders.

A number of hedge funds have recently modified their holdings of CMI. Acropolis Investment Management LLC increased its holdings in shares of 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 in the last quarter. Security National Bank of SO Dak increased its holdings in shares of 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 in the last quarter. BRYN MAWR TRUST Co increased its holdings in shares of 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 in the last quarter. Commerce Bank increased its holdings in shares of Cummins by 2.4% during the third quarter. Commerce Bank now owns 16,408 shares of the company’s stock valued at $2,397,000 after acquiring an additional 385 shares in the last quarter. Finally, Essex Financial Services Inc. increased its holdings in shares of 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 in the last quarter. Institutional investors and hedge funds own 79.79% 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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