Cummins Inc. (NYSE:CMI) finished Friday with an addition of $1.5 to close at $238.72, an upside of 0.63 percent. An average of 643,260 shares of common stock have been traded in the last five days. There was a gain of $2.21 in the past week, and it reached a new high 20 times over the past 12 months. The last 20 days have seen an average of 920,475 shares traded, while the 50-day average volume stands at 1,003,100.
CMI stock has decreased by -6.20% in the last month. The company shares reached their 1-month lowest point of $232.40 on 08/08/23. With the stock rallying to its 52-week high on 08/01/23, shares of the company touched a low of $200.40 and a high of $265.28 in 52 weeks. It has reached a new high 13 times so far this year and lost -1.47% or -$3.57 in price. In spite of this, the price is down -10.01% from the 52-week high.
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Insider Transactions
CMI stock investors should be aware that Cummins Inc. (CMI) stock had its last reported insider trading activity 171 days ago on Feb 22. In this transaction, the insider spent $836,652. VP – Chief Administrative Off., Barner Sharon R, disposed of 5,929 shares at a price of $257.13 on Feb 17. The insider now owns more than $1,524,553 worth of shares. Prior to that, VP – Chief Administrative Off. Barner Sharon R went on to Sale 5,540 shares at $252.34 each on Feb 15. An amount of $1,397,976 was transacted.
Valuation Metrics
Cummins Inc. (CMI) has a trailing price-to-earnings (P/E) ratio of 13.37. The stock’s beta is 1.07. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 1.08, the price-to-book (PB) ratio at 3.27, and the price-to-cash flow ratio at 148.80.
The company has a payout ratio of 35.00%. The company’s most recent quarterly dividend payment was $1.68 a share, representing a up of 7.01% from $1.57 last year.
Financial Health
The quick ratio of Cummins Inc. for the three months ended June 29 was 0.80, and the current ratio was 1.40, indicating that the company is not able to meet its debt obligations. Further, the company has a long term debt to equity ratio of 0.49 and a total debt to equity ratio of 0.74 for the quarter ending June 29. Cummins Inc.’s EBITDA margin for the year ending June 29 is 12.35%, while its operating margin for the same period stands at 10.70%. Its gross profit as reported stood at $6.72 billion compared to revenue of $28.07 billion.
For investors, determining the potential profitability of the investment also depends on the performance of the company’s management. In the past 12 months, Cummins Inc.’s return on assets was 8.20%.
Earnings Surprise
For the three-month period that ended June 29, Cummins Inc. had $512.0 million in cash and short-term investments compared to $5.09 billion in total debt. In the quarter under review, the net income was up than the previous quarter. The company posted a net income of $720.0 million in the quarter, while revenues were grew 2.5%. The analyst consensus anticipated Cummins Inc.’s latest quarter earnings to come in at $5.29 per share, but it turned out to be $5.05, a -4.50% surprise. For the quarter, EBITDA amounted to $1.25 billion. Shareholders own equity worth $141.65 million.
Technical Picture
From a technical analysis perspective, let’s take a brief look at Cummins Inc. (CMI) price momentum. RSI 9-day as of the close on 11 August was 33.21%, suggesting the stock is Neutral, with historical volatility in this time frame at 41.14%.
As of today, CMI’s price is $238.02 +0.93% or $2.21 from its 5-day moving average. CMI is currently trading -5.33% lower than its 20-day SMA and +3.80% higher than its 100-day SMA. However, the stock’s current price level is +16.78% above the SMA50 and +2.21% above the SMA200.
The stochastic %K and %D were 17.57% and 16.37%, respectively, and the average true range (ATR) was 5.78. With the 14-day stochastic at 19.22% and the average true range at 5.64, the RSI (14) stands at 39.33%. The stock has reached -5.87 on the 9-day MACD Oscillator while the 14-day reading was at -11.01.
Analyst Ratings
Evercore ISI downgraded Cummins Inc. (NYSE: CMI) to a an In-line rating in its most recent analyst report. Previously, the stock was rated as an Outperform. The consensus rating for Cummins Inc. (CMI) among analysts is Overweight. According to current brokerage recommendations, 0 brokerage firms advise that investors sell CMI, while 15 suggest investors hold. There are 0 analysts who rate the stock as underweight. The stock is rated overweight by 2 analysts, while 6 others rate it as a “buy”.
What is CMI’s price target for the next 12 months?
Analysts predict a range of price targets between $216.00 and $290.00, with a median target of $263.00. Taking a look at these predictions, the average price target given by analysts for Cummins Inc. (CMI) stock is $259.75.
