Cummins (NYSE:CMI) Cut to Hold at Vertical Research

Vertical Research lowered shares of Cummins (NYSE:CMI - Free Report) from a buy rating to a hold rating in a report released on Wednesday morning, MarketBeat reports. The firm currently has $350.00 price objective on the stock.

A number of other research firms have also recently weighed in on CMI. Barclays upped their price objective on shares of Cummins from $259.00 to $310.00 and gave the company an "equal weight" rating in a research report on Monday, August 5th. JPMorgan Chase & Co. upped their target price on shares of Cummins from $285.00 to $340.00 and gave the company an "underweight" rating in a research note on Friday, October 11th. Evercore ISI upped their target price on shares of Cummins from $290.00 to $294.00 and gave the company an "in-line" rating in a research note on Monday, August 19th. Citigroup upped their target price on shares of Cummins from $345.00 to $375.00 and gave the company a "buy" rating in a research note on Wednesday, October 9th. Finally, Robert W. Baird upped their target price on shares of Cummins from $330.00 to $372.00 and gave the company a "neutral" rating in a research note on Wednesday. Two investment analysts have rated the stock with a sell rating, seven have assigned a hold rating and five have assigned a buy rating to the company. According to MarketBeat.com, Cummins has a consensus rating of "Hold" and an average target price of $324.83.

Cummins Stock Up 0.5 %

Cummins stock traded up $1.61 during trading on Wednesday, reaching $356.07. 1,155,553 shares of the company's stock were exchanged, compared to its average volume of 1,508,413. The company's 50-day moving average is $320.21 and its two-hundred day moving average is $297.86. The company has a debt-to-equity ratio of 0.51, a quick ratio of 0.82 and a current ratio of 1.34. Cummins has a 52-week low of $214.57 and a 52-week high of $370.21. The firm has a market cap of $48.80 billion, a price-to-earnings ratio of 25.58, a PEG ratio of 1.88 and a beta of 0.97.

Cummins (NYSE:CMI - Get Free Report) last announced its quarterly earnings results on Tuesday, November 5th. The company reported $5.86 earnings per share for the quarter, topping analysts' consensus estimates of $4.89 by $0.97. The firm had revenue of $8.46 billion during the quarter, compared to analysts' expectations of $8.29 billion. Cummins had a net margin of 5.69% and a return on equity of 25.73%. The firm's revenue was up .3% on a year-over-year basis. During the same period in the prior year, the company earned $4.73 EPS. On average, analysts predict that Cummins will post 19.96 earnings per share for the current year.

Cummins Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, December 5th. Shareholders of record on Friday, November 22nd will be given a dividend of $1.82 per share. This represents a $7.28 annualized dividend and a yield of 2.04%. The ex-dividend date of this dividend is Friday, November 22nd. Cummins's payout ratio is 52.49%.

Insiders Place Their Bets

In other news, VP Sharon R. Barner sold 4,780 shares of Cummins stock in a transaction dated Thursday, August 15th. The stock was sold at an average price of $300.35, for a total transaction of $1,435,673.00. Following the completion of the sale, the vice president now directly owns 20,873 shares in the company, valued at $6,269,205.55. The trade was a 0.00 % decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. In related news, VP Sharon R. Barner sold 4,780 shares of Cummins stock in a transaction on Thursday, August 15th. The shares were sold at an average price of $300.35, for a total value of $1,435,673.00. Following the completion of the sale, the vice president now owns 20,873 shares of the company's stock, valued at approximately $6,269,205.55. The trade was a 0.00 % decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, SVP Tony Satterthwaite sold 24,250 shares of the stock in a transaction on Friday, August 23rd. The stock was sold at an average price of $308.24, for a total transaction of $7,474,820.00. Following the transaction, the senior vice president now directly owns 77,442 shares in the company, valued at $23,870,722.08. The trade was a 0.00 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Corporate insiders own 0.56% of the company's stock.

Institutional Trading of Cummins

A number of institutional investors and hedge funds have recently modified their holdings of CMI. Cultivar Capital Inc. bought a new position in Cummins in the 2nd quarter worth approximately $28,000. CarsonAllaria Wealth Management Ltd. acquired a new position in Cummins during the 2nd quarter valued at $28,000. Lynx Investment Advisory bought a new stake in Cummins in the 2nd quarter valued at $29,000. LRI Investments LLC bought a new stake in Cummins in the 1st quarter valued at $31,000. Finally, Kathleen S. Wright Associates Inc. bought a new stake in Cummins in the 3rd quarter valued at $34,000. 83.46% 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, 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.