Several other brokerages have also recently issued reports on CMI. Wells Fargo & Co set a $158.00 target price on Cummins and gave the company a hold rating in a research report on Wednesday, August 1st. JPMorgan Chase & Co. cut Cummins from a neutral rating to an underweight rating and cut their target price for the company from $156.00 to $137.00 in a research report on Friday, August 24th. Zacks Investment Research raised Cummins from a hold rating to a buy rating and set a $157.00 target price on the stock in a research report on Tuesday, October 23rd. Bank of America lifted their target price on Cummins from $157.00 to $160.00 and gave the company a neutral rating in a research report on Tuesday, October 9th. Finally, ValuEngine raised Cummins from a strong sell rating to a sell rating in a research report on Friday, September 21st. Two equities research analysts have rated the stock with a sell rating, fifteen have given a hold rating and nine have assigned a buy rating to the stock. The company has a consensus rating of Hold and an average target price of $165.77.
Shares of NYSE CMI traded up $4.00 during midday trading on Tuesday, hitting $138.40. 158,158 shares of the stock traded hands, compared to its average volume of 1,664,435. The company has a market cap of $21.22 billion, a price-to-earnings ratio of 13.03, a P/E/G ratio of 0.73 and a beta of 1.12. Cummins has a one year low of $124.72 and a one year high of $194.18. The company has a quick ratio of 1.03, a current ratio of 1.61 and a debt-to-equity ratio of 0.19.
Cummins declared that its board has authorized a stock buyback program on Tuesday, October 9th that allows the company to repurchase $2.00 billion in outstanding shares. This repurchase authorization allows the company to buy up to 8.3% of its shares through open market purchases. Shares repurchase programs are typically an indication that the company’s management believes its shares are undervalued.
The firm also recently disclosed a quarterly dividend, which will be paid on Monday, December 3rd. Shareholders of record on Thursday, November 15th will be given a $1.14 dividend. The ex-dividend date of this dividend is Wednesday, November 14th. This represents a $4.56 annualized dividend and a yield of 3.29%. Cummins’s dividend payout ratio is currently 42.94%.
In other Cummins news, CAO Marya M. Rose sold 14,579 shares of the business’s stock in a transaction on Monday, October 8th. The stock was sold at an average price of $151.07, for a total value of $2,202,449.53. Following the transaction, the chief accounting officer now owns 24,424 shares of the company’s stock, valued at $3,689,733.68. The transaction was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. Also, VP Tracy A. Embree sold 462 shares of the business’s stock in a transaction on Monday, August 6th. The stock was sold at an average price of $141.70, for a total value of $65,465.40. Following the completion of 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. In the last three months, insiders sold 26,087 shares of company stock worth $3,914,211. Insiders own 0.67% of the company’s stock.
A number of hedge funds have recently bought and sold shares of CMI. Edge Wealth Management LLC purchased a new position in Cummins in the third quarter worth $102,000. Migdal Insurance & Financial Holdings Ltd. lifted its position in shares of 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 buying an additional 881 shares during the last quarter. MHI Funds LLC purchased a new position in shares of Cummins during the 2nd quarter valued at $147,000. Qube Research & Technologies Ltd purchased a new position in shares of Cummins during the 2nd quarter valued at $155,000. Finally, Centaurus Financial Inc. lifted its position in shares of 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 buying an additional 520 shares during the last quarter. 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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