As of Friday close, Cummins Inc.’s (NYSE:CMI) stock was up $0.72, moving up 0.31 percent to $233.62. The average number of shares traded per day over the past five days has been 605,280 shares. 1 time new highs have been achieved over the past 5 days, with a -$5.10 fall in that time frame. In the last twenty days, the average volume was 799,065, while in the previous 50 days, it was 949,698.
Since last month, CMI stock retreated -10.14%. Shares of the company fell to $230.31 on 08/18/23, the lowest level in the past month. A 52-week high of $265.28 was reached on 08/01/23 after having rallying from a 52-week low of $200.40. Since the beginning of this year, CMI’s stock price has dropped by -3.58% or -$8.67, and marked a new high 13 times. However, the stock has declined by -11.93% since its 52-week high.
CMI stock investors should be aware that Cummins Inc. (CMI) stock had its last reported insider trading activity 178 days ago on Feb 22. Fier Walter J, the VP – Chief Technical Officer of the company, disposed of 3,307 shares for $252.99 on Feb 22. It resulted in a $836,652 divestment by the insider. Barner Sharon R sold 5,929 shares at an average price of $257.13 on Feb 17. The insider now owns 16,144 shares following the transaction. On Feb 15, VP – Chief Administrative Off. Barner Sharon R sold 5,540 shares at $252.34 apiece. The transaction was valued at $1,397,976.
Valuation Metrics
Right now, Cummins Inc. (CMI) has a P/E ratio of about 13.09. The stock’s beta is 1.08. Besides these, the trailing price-to-sales (P/S) ratio of 1.02, the price-to-book (PB) ratio of 3.20, and the price-to-cash flow ratio of 29.31 may also be considered.
The latest dividend of $1.68 per share was paid out, which is 7.01% more than last year’s $1.57.
Financial Health
In the three months ended June 29, Cummins Inc.’s quick ratio stood at 0.80, while its current ratio was 1.40, showing that the company is not able to pay off its debt. According to company report, the long-term debt-to-equity ratio for the quarter ending June 29 was 0.49, and the total debt-to-equity ratio was 0.74. On the profitability front, the trailing twelve-month gross margin is 23.70% percent. In the year ended June 29, EBITDA margin amounted to 12.35%, whereas operating margins totaled 10.70%. Based on annual data, CMI earned $6.72 billion in gross profit and brought in $28.07 billion in revenue.
A company’s management is another factor that investors consider when determining the profitability of an investment. In the past year, return on investment (ROI) was 13.60%. Return on equity (ROE) for the past 12 months was 27.20%.
In Cummins Inc.’s quarter-end financial report for June 29, it reported total debt of $5.09 billion against cash and short-term investments of $512.0 million. According to the earnings report, the company had a higher net income in the recent quarter than it did in the previous quarter. CMI’s revenue rose 23.76% to $8.45 billion during the quarter, while net income inched up to $8.64 billion. While analysts expected Cummins Inc. to report $5.29 quarterly earnings, the actual figure was $5.05 per share, beating the consensus estimate by -4.50%. During the quarter, the company generated $1.25 billion in EBITDA. The liabilities of Cummins Inc. were 20.38 billion at the end of its most recent quarter ended June 29, and its total debt was $8.36 billion. The value of shareholders’ equity is $141.65 million.
Technical Picture
This quick technical analysis looks at Cummins Inc.’s (CMI) price momentum. With a historical volatility rate of 11.78%, the RSI 9-day stood at 30.00% on 18 August.
With respect to its five-day moving average, the current Cummins Inc. price is down by -2.14% percent or -$5.10. At present, CMI shares trade -9.71% below its 20-day simple moving average and +2.94% percent above its 100-day simple moving average. However, the stock is currently trading approximately +3.04% above its SMA50 and -4.45% below its SMA200.
Stochastic coefficient K was 4.53% and Stochastic coefficient D was 4.12%, while ATR was 5.00. Given the Stochastic reading of 9.47% for the 14-day period, the RSI (14) reading has been calculated as 35.74%. As of today, the MACD Oscillator reading stands at -2.76, while the 14-day reading stands at -7.40.
Analyst Ratings
Cummins Inc. downgraded its rating on Cummins Inc. (NYSE: CMI) to an In-line in a note to investors on May 09, 2023. The analysts firm previously had an Outperform rating on the stock.Cummins Inc. (CMI) has been rated Overweight by analysts. According to 0 brokerage firms, CMI is a sell, and 15 firms recommend it is a Hold. There are 0 analysts who say the stock is underweight. A total of 2 analysts rate Cummins Inc. stock as buy, with 6 recommending it as overweight.
With a median target price of $267.00, the current consensus forecast for the stock is $216.00 – $290.00. Based on these forecasts, analysts predict Cummins Inc. (CMI) will achieve an average price target of $260.08.
