Cummins Inc. (CMI): Is it showing Green Signal

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Cummins Inc. (NYSE:CMI) changes shares on Wednesday trading session, with a change of 2.76% or $5.33 shares. The trading starts at $194.87 and closed at $193.01 throughout the day. The trading session low price was $194.23 and day high was $198.90 on Wednesday, August 05. After the session, the Industrials sector daily volume shifted to 0.98 million while its average volume is 1.27M. In other hand, the CMI market cap reached to $29.48B. While, its current target price is $201.63.

On June 29, 2020, U.S. home contracts post record jump, factory activity improves in Texas. According to the news reported on Reuters, Contracts to buy U.S. previously owned homes rebounded by the most on record in May, suggesting the housing market was starting to turn around after being hammered by the COVID-19 pandemic along with the rest of the economy.

Checking out the performance report which defines the increase or decrease of prices for a specific period. For the last 5 trading sessions, its performance is down -0.27% and up 12.97% for month. Its quarterly performance was 29.09% above, while its half year performance is up 19.17%. CMI yearly performance stood at positive 28.46% and rise 10.83% for year-to-date. Current recommendation for Cummins Inc. is 2.70.

Earnings per share or EPS is an important financial measure, which defines the profitability of a company. CMI EPS (TTM) for 12-month is 11.22. EPS for this year is 9.50%, while for the next year its value is 11.79. Its EPS Q/Q reached -56.30%. It has an EPS of 9.90% up for past five years and for the next five years will be down -3.42%.

Let’s take a look on the analyst recommendations on CMI for the current month and previous month. For the current month, 7 of 24 analysts recommend stock as Buy while 1 as Sell, 0 as overweight, 1 as underweight and 15 as Hold. As compared with the previous month ratings, 26 analysts participate in stock recommendation. Out of 26, 2 rated it sell, 7 rated it as Buy and 16 as Hold Ratings. On the other hand, target price ranges from $160.00 – $244.00. Average target price for CMI was reached at $201.56.

Vanguard Group, Inc. (The), Blackrock Inc. and State Street Corporation are the top three holders in Cummins Inc. (CMI) stock. On Mar 30, 2020, Vanguard Group, Inc. (The) has 12.91 million shares which valued 1.75 billion. On Mar 30, 2020, Blackrock Inc. owned 12.59 million shares which valued at 1.7 billion. On Mar 30, 2020, State Street Corporation has a total of 7.19 million shares which valued at 973.53 million. In the end, State Street Corporation have 4.87% shares outstanding of Cummins Inc. (CMI) on Mar 30, 2020. The insider ownership moved to 0.30% and institutional holding shifted to 85.00%.

The company posted an EPS (TTM) of 11.22. According to the most recent quarter report on (Sep 2020), 19 analysts estimated an average EPS of 2.29, while 3.83 EPS posted a year ago period. Analyst Estimated EPS for CMI published in the report was $1.81 – $2.72 during the same period. Comparing with last year, the average estimated EPS was 3.83 which is higher than 1.95 which was posted for recent quarter EPS.

A brief look on simple moving average (SMA) that determines the market price can impact a market. The SMA for CMI rise 18.97% for period of 200 days. SMA for 50 days was 11.51% which is showing green signal, while SMA-20 was 6.72%. The moving average value for Cummins Inc. (CMI) is 4.87M and 2.98% for 200 and 50 days respectively.

Let’s take a look on the insider transactions, in which multiple shareholders are showing interest in CMI stock. On Feb 14, Osowick Mark J, VP – Human Resources Op., sold 438 trading shares at the cost of $165.88, which valued at 72654.0. On Feb 13, LINEBARGER NORMAN THOMAS, Chairman & CEO, sold 10,447 shares at the cost of $167.54, with total shares of 85,189. On Feb 13, Satterthwaite Tony, President & COO, sold 5,395 shares at the cost of 167.75. After this transaction, Satterthwaite Tony total shares reached to 46,189 which valued at 0.91 million.