Goldman Sachs Group Upgrades Cummins (NYSE:CMI) to Buy

Cummins (NYSE:CMI) was upgraded by research analysts at Goldman Sachs Group from a “neutral” rating to a “buy” rating in a research note issued to investors on Thursday, Marketbeat reports. The firm presently has a $200.00 price target on the stock, up from their prior price target of $192.00. Goldman Sachs Group’s price objective would suggest a potential upside of 19.92% from the company’s previous close.

CMI has been the subject of a number of other reports. Cfra lowered shares of Cummins from a “buy” rating to a “hold” rating in a research note on Wednesday, October 30th. Citigroup reduced their price target on shares of Cummins from $200.00 to $190.00 and set a “buy” rating for the company in a research note on Friday, February 7th. JPMorgan Chase & Co. lifted their price target on shares of Cummins from $175.00 to $190.00 and gave the stock a “neutral” rating in a research note on Friday, December 20th. UBS Group upgraded shares of Cummins from a “sell” rating to a “neutral” rating and lifted their price target for the stock from $162.00 to $167.00 in a research note on Thursday, February 6th. Finally, Raymond James began coverage on shares of Cummins in a research note on Wednesday, November 27th. They issued a “market perform” rating for the company. One investment analyst has rated the stock with a sell rating, twelve have given a hold rating and eight have issued a buy rating to the company’s stock. The company currently has an average rating of “Hold” and a consensus price target of $183.19.

NYSE:CMI opened at $166.78 on Thursday. The firm has a market cap of $25.45 billion, a P/E ratio of 11.57, a P/E/G ratio of 2.11 and a beta of 1.15. The company has a debt-to-equity ratio of 0.19, a quick ratio of 0.94 and a current ratio of 1.50. Cummins has a fifty-two week low of $141.14 and a fifty-two week high of $186.73. The firm has a 50-day simple moving average of $170.59 and a two-hundred day simple moving average of $168.05.

Cummins (NYSE:CMI) last released its quarterly earnings data on Tuesday, February 4th. The company reported $2.56 earnings per share for the quarter, beating analysts’ consensus estimates of $2.42 by $0.14. Cummins had a net margin of 9.59% and a return on equity of 26.49%. The business had revenue of $5.58 billion during the quarter, compared to analyst estimates of $5.39 billion. During the same period last year, the business earned $3.48 EPS. Cummins’s revenue was down 8.9% compared to the same quarter last year. On average, equities research analysts predict that Cummins will post 12.1 EPS for the current year.

Cummins declared that its board has initiated a share repurchase program on Tuesday, December 10th that allows the company to repurchase $2.00 billion in outstanding shares. This repurchase authorization allows the company to buy up to 7.2% of its shares through open market purchases. Shares repurchase programs are typically an indication that the company’s management believes its stock is undervalued.

In related news, COO Tony Satterthwaite sold 5,395 shares of the firm’s stock in a transaction that occurred on Thursday, February 13th. The shares were sold at an average price of $167.75, for a total value of $905,011.25. Following the transaction, the chief operating officer now owns 51,584 shares of the company’s stock, valued at $8,653,216. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, VP Mark J. Osowick sold 438 shares of Cummins stock in a transaction that occurred on Friday, February 14th. The shares were sold at an average price of $165.88, for a total transaction of $72,655.44. Following the transaction, the vice president now directly owns 7,392 shares in the company, valued at approximately $1,226,184.96. The disclosure for this sale can be found here. In the last three months, insiders sold 16,280 shares of company stock worth $2,727,957. 0.95% of the stock is currently owned by insiders.

A number of large investors have recently modified their holdings of CMI. American International Group Inc. lifted its holdings in Cummins by 2,162.4% during the fourth quarter. American International Group Inc. now owns 1,728,050 shares of the company’s stock valued at $309,252,000 after purchasing an additional 1,651,668 shares in the last quarter. BlackRock Inc. lifted its holdings in Cummins by 5.8% during the second quarter. BlackRock Inc. now owns 11,488,896 shares of the company’s stock valued at $1,968,509,000 after purchasing an additional 629,235 shares in the last quarter. Hotchkis & Wiley Capital Management LLC lifted its holdings in Cummins by 9.7% during the fourth quarter. Hotchkis & Wiley Capital Management LLC now owns 2,769,641 shares of the company’s stock valued at $495,655,000 after purchasing an additional 244,103 shares in the last quarter. Johanson Financial Advisors Inc. purchased a new position in Cummins during the fourth quarter valued at approximately $1,226,000. Finally, Bank of Montreal Can lifted its holdings in Cummins by 39.5% during the fourth quarter. Bank of Montreal Can now owns 684,649 shares of the company’s stock valued at $122,524,000 after purchasing an additional 194,013 shares in the last quarter. 82.98% 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.

Recommended Story: How to interpret the current ratio

Analyst Recommendations for Cummins (NYSE:CMI)

Receive News & Ratings for Cummins Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Cummins and related companies with MarketBeat.com's FREE daily email newsletter.