Stock Update (NYSE:CMI): Cummins Inc. Prevails in Patent Infringement Claims

Cummins Inc. (NYSE:CMI) and Cummins Ltd. (collectively “Cummins”) announced that they have reached agreement to resolve patent infringement claims against ADP Distributors Inc. and ADP Distributors USA, Inc., which do business as Rotomaster. The Consent Judgment reflecting these terms was entered by the United States District Court in Indianapolis, Indiana on August 16, 2016.

The litigation related to Rotomaster’s infringement of Cummins’ turbocharger patents in the U.S. and overseas. Under the terms of the settlement, Rotomaster shall cease producing infringing products in any countries where Cummins has valid patent rights and will cease infringing activities in the United States. Rotomaster acknowledged that Cummins’ patents are valid and enforceable and that Rotomaster infringed the patents.

“Cummins is pleased to have reached a resolution in this matter,” says Mahesh Narang, Executive Director and General Manager, Cummins Turbo Technologies, Cummins Inc. “Cummins respects the intellectual property rights of others and takes action necessary to protect and enforce its valuable intellectual property and to safeguard its own interests.” (Original Source)

Shares of Cummins are currently trading at $139.49, down $0.30 or -0.21%. CMI has a 1-year high of $147.10 and a 1-year low of $79.88. The stock’s 50-day moving average is $139.43 and its 200-day moving average is $126.66.

On the ratings front, Cummins has been the subject of a number of recent research reports. In a report issued on December 1, CLSA analyst Kristine Kubacki downgraded CMI to Buy. Separately, on November 23, UBS’s Steven Fisher reiterated a Hold rating on the stock and has a price target of $136.

According to, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Kristine Kubacki and Steven Fisher have a yearly average return of 11.2% and a loss of -1.1% respectively. Kubacki has a success rate of 50% and is ranked #1286 out of 4351 analysts, while Fisher has a success rate of 43% and is ranked #3283.

Overall, 4 research analysts have assigned a Hold rating and 4 research analysts have given a Buy rating to the stock. When considering if perhaps the stock is under or overvalued, the average price target is $132.00 which is -5.6% under where the stock opened today.

Cummins, Inc. engages in the design, manufacture, sale and service of diesel and natural gas engines and related technologies, including fuel systems, controls, air handing, filtration, emission, solutions and electrical power generation systems. It operates through the following segments: Engine, Distribution, Components, and Power Generation segments. The Engine segment manufactures and markets a broad range of diesel and natural gas powered engines under the Cummins brand name, as well as certain customer brand names, for the heavy- and medium-duty truck, bus, recreational vehicle (RV), light-duty automotive, agricultural, construction, mining, marine, oil and gas, rail and governmental equipment markets. The Distribution segment is consists of 37 company-owned and 5 joint venture distributors that service and distribute the full range of its products and services to end-users at approximately 500 locations in over 80 distribution territories. The Components segment provides supplies products which complement its engine segment, including after treatment systems, turbochargers, filtration products and fuel systems for commercial diesel applications. The Power Generation segment designs and manufactures most of the components that make up power generation systems, including controls, alternators, transfer switches and switchgear. 

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