Cummins (NYSE:CMI) Stock Rating Lowered by StockNews.com

StockNews.com lowered shares of Cummins (NYSE:CMI) from a buy rating to a hold rating in a research note published on Tuesday morning.

Other analysts also recently issued reports about the stock. Bank of America raised shares of Cummins from an “underperform” rating to a “neutral” rating and boosted their price target for the stock from $354.00 to $358.00 in a research note on Tuesday, January 14th. Jefferies Financial Group boosted their target price on Cummins from $410.00 to $435.00 and gave the company a “buy” rating in a research note on Friday, December 6th. UBS Group reduced their price target on Cummins from $432.00 to $400.00 and set a “buy” rating on the stock in a research report on Tuesday, March 18th. Citigroup dropped their price objective on Cummins from $435.00 to $430.00 and set a “buy” rating for the company in a research note on Tuesday, January 14th. Finally, JPMorgan Chase & Co. lowered their price target on shares of Cummins from $420.00 to $375.00 and set a “neutral” rating for the company in a report on Tuesday, March 18th. Nine research analysts have rated the stock with a hold rating and five have issued a buy rating to the stock. Based on data from MarketBeat.com, the company currently has an average rating of “Hold” and a consensus price target of $389.50.

Cummins Stock Performance

Shares of NYSE CMI opened at $330.57 on Tuesday. The stock’s 50-day moving average is $354.72 and its 200 day moving average is $348.24. The stock has a market cap of $45.45 billion, a price-to-earnings ratio of 11.73, a P/E/G ratio of 2.19 and a beta of 1.01. Cummins has a 1-year low of $261.51 and a 1-year high of $387.90. The company has a current ratio of 1.31, a quick ratio of 0.80 and a debt-to-equity ratio of 0.42.

Cummins (NYSE:CMI) last posted its quarterly earnings results on Tuesday, February 4th. The company reported $5.16 EPS for the quarter, topping the consensus estimate of $4.70 by $0.46. Cummins had a net margin of 11.57% and a return on equity of 27.12%. The firm had revenue of $8.45 billion for the quarter, compared to the consensus estimate of $8.06 billion. During the same period last year, the firm posted $4.14 earnings per share. The business’s revenue was down 1.1% compared to the same quarter last year. On average, sell-side analysts anticipate that Cummins will post 22.54 EPS for the current fiscal year.

Cummins Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Thursday, March 6th. Shareholders of record on Friday, February 21st were issued a $1.82 dividend. The ex-dividend date was Friday, February 21st. This represents a $7.28 annualized dividend and a yield of 2.20%. Cummins’s dividend payout ratio (DPR) is presently 25.84%.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently made changes to their positions in CMI. Global Trust Asset Management LLC boosted its position in shares of Cummins by 59.6% during the fourth quarter. Global Trust Asset Management LLC now owns 75 shares of the company’s stock valued at $26,000 after purchasing an additional 28 shares in the last quarter. BankPlus Trust Department purchased a new position in Cummins during the fourth quarter valued at $26,000. Compass Financial Services Inc bought a new stake in shares of Cummins during the 4th quarter valued at $27,000. Meeder Asset Management Inc. grew its position in shares of Cummins by 208.0% in the 4th quarter. Meeder Asset Management Inc. now owns 77 shares of the company’s stock worth $27,000 after buying an additional 52 shares during the period. Finally, TCTC Holdings LLC bought a new position in shares of Cummins in the 4th quarter worth about $28,000. Hedge funds and other institutional investors own 83.46% 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.