Cummins (NYSE:CMI) Rating Increased to Buy at UBS Group

UBS Group upgraded shares of Cummins (NYSE:CMI) from a neutral rating to a buy rating in a research report report published on Friday morning, Marketbeat reports. UBS Group currently has $321.00 price target on the stock, up from their prior price target of $254.00.

Several other analysts also recently commented on CMI. TD Cowen increased their target price on Cummins from $260.00 to $272.00 and gave the company an outperform rating in a research note on Wednesday, February 7th. JPMorgan Chase & Co. dropped their price target on shares of Cummins from $255.00 to $245.00 and set an underweight rating for the company in a research note on Thursday, January 18th. Citigroup boosted their price target on shares of Cummins from $265.00 to $285.00 and gave the company a buy rating in a research report on Monday, February 12th. Bank of America lowered shares of Cummins from a neutral rating to an underperform rating and dropped their price target for the stock from $243.00 to $225.00 in a research note on Friday, January 19th. Finally, StockNews.com lowered shares of Cummins from a buy rating to a hold rating in a research report on Monday, March 4th. Two research analysts have rated the stock with a sell rating, five have issued a hold rating and five have given a buy rating to the stock. According to data from MarketBeat.com, Cummins presently has a consensus rating of Hold and an average price target of $268.91.

Cummins Stock Up 4.1 %

NYSE CMI opened at $286.12 on Friday. The company has a market capitalization of $40.59 billion, a price-to-earnings ratio of 55.24, a PEG ratio of 1.79 and a beta of 1.03. The company has a current ratio of 1.18, a quick ratio of 0.74 and a debt-to-equity ratio of 0.48. Cummins has a 1-year low of $203.18 and a 1-year high of $287.94. The stock’s 50 day moving average is $254.23 and its two-hundred day moving average is $238.23.

Cummins (NYSE:CMI) last announced its quarterly earnings data on Tuesday, February 6th. The company reported $4.14 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $4.41 by ($0.27). The company had revenue of $8.54 billion for the quarter, compared to the consensus estimate of $8.10 billion. Cummins had a return on equity of 25.68% and a net margin of 2.16%. The company’s revenue for the quarter was up 9.9% on a year-over-year basis. During the same quarter in the prior year, the company earned $4.52 EPS. Equities analysts forecast that Cummins will post 18.38 earnings per share for the current fiscal year.

Cummins Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Thursday, March 7th. Shareholders of record on Friday, February 23rd were given a dividend of $1.68 per share. The ex-dividend date of this dividend was Thursday, February 22nd. This represents a $6.72 dividend on an annualized basis and a yield of 2.35%. Cummins’s payout ratio is presently 129.73%.

Insider Activity

In other Cummins news, Director Daniel William Fisher acquired 562 shares of the stock in a transaction dated Tuesday, February 27th. The shares were bought at an average cost of $266.57 per share, for a total transaction of $149,812.34. Following the completion of the acquisition, the director now directly owns 1,068 shares of the company’s stock, valued at $284,696.76. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this link. In other Cummins news, VP Sharon R. Barner sold 2,100 shares of the stock in a transaction that occurred on Wednesday, February 28th. The stock was sold at an average price of $271.29, for a total transaction of $569,709.00. Following the transaction, the vice president now directly owns 16,899 shares in the company, valued at approximately $4,584,529.71. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, Director Daniel William Fisher acquired 562 shares of the company’s stock in a transaction on Tuesday, February 27th. The shares were bought at an average price of $266.57 per share, for a total transaction of $149,812.34. Following the completion of the purchase, the director now owns 1,068 shares in the company, valued at approximately $284,696.76. The disclosure for this purchase can be found here. Insiders sold a total of 51,289 shares of company stock valued at $13,576,838 in the last ninety days. 1.12% of the stock is owned by insiders.

Institutional Trading of Cummins

Hedge funds have recently bought and sold shares of the company. OFI Invest Asset Management bought a new position in Cummins in the third quarter valued at about $25,000. First United Bank & Trust purchased a new stake in Cummins during the 4th quarter valued at about $25,000. Private Wealth Management Group LLC acquired a new stake in Cummins during the fourth quarter worth about $26,000. Silver Oak Securities Incorporated purchased a new position in Cummins during the third quarter worth approximately $28,000. Finally, Global Wealth Strategies & Associates purchased a new position in shares of Cummins in the third quarter valued at approximately $29,000. Institutional investors own 81.81% of the company’s stock.

Cummins Company Profile

Cummins Inc designs, manufactures, distributes, and services diesel and natural gas engines, electric and hybrid powertrains, and related components worldwide. It operates through five segments: Engine, Distribution, Components, Power Systems, and Accelera. The company offers 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; and offers parts and services, as well as remanufactured parts and engines.