Cummins Inc. (NYSE:CMI) went down by -0.82% from its latest closing price compared to the recent 1-year high of $215.43. The company’s stock price has collected 4.01% of gains in the last five trading sessions. Barron’s reported on 09/23/20 that Three Machinery Stocks for the ‘Rise of Industrial Tech’
Is It Worth Investing in Cummins Inc. (NYSE :CMI) Right Now?
Cummins Inc. (NYSE:CMI) scored a price-to-earnings ratio above its average ratio, recording 18.82 x from its present earnings ratio. Plus, the 36-month beta value for CMI is at 1.10. Opinions of the stock are interesting as 8 analysts out of 25 who provided ratings for Cummins Inc. declared the stock was a “buy,” while 1 rated the stock as “overweight,” 14 rated it as “hold,” and 1 as “sell.”
The average price from analysts is $214.53, which is $3.9 above the current price. CMI currently public float of 147.25M and currently shorts hold a 2.13% ratio of that float. Today, the average trading volume of CMI was 980.63K shares.
CMI’s Market Performance
CMI stocks went up by 4.01% for the week, with a monthly jump of 1.89% and a quarterly performance of 23.52%, while its annual performance rate touched 34.04%. The volatility ratio for the week stands at 2.86% while the volatility levels for the past 30 days are set at 2.76% for Cummins Inc.. The simple moving average for the period of the last 20 days is 1.33% for CMI stocks with a simple moving average of 22.61% for the last 200 days.
Analysts’ Opinion of CMI
Many brokerage firms have already submitted their reports for CMI stocks, with Bernstein repeating the rating for CMI by listing it as a “Outperform.” The predicted price for CMI in the upcoming period, according to Bernstein is $255 based on the research report published on September 23rd of the current year 2020.
UBS, on the other hand, stated in their research note that they expect to see CMI reach a price target of $240, previously predicting the price at $193. The rating they have provided for CMI stocks is “Buy” according to the report published on September 08th, 2020.
CMI Trading at 3.11% from the 50-Day Moving Average
After a stumble in the market that brought CMI to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -1.98% of loss for the given period.
Volatility was left at 2.76%, however, over the last 30 days, the volatility rate increased by 2.86%, as shares surge +0.05% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading +13.42% upper at present.
During the last 5 trading sessions, CMI rose by +4.01%, which changed the moving average for the period of 200-days by +15.72% in comparison to the 20-day moving average, which settled at $208.38. In addition, Cummins Inc. saw 17.99% in overturn over a single year, with a tendency to cut further gains.
Reports are indicating that there were more than several insider trading activities at CMI starting from Osowick Mark J, who sale 438 shares at the price of $165.88 back on Feb 14. After this action, Osowick Mark J now owns 6,954 shares of Cummins Inc., valued at $72,654 using the latest closing price.
LINEBARGER NORMAN THOMAS, the Chairman & CEO of Cummins Inc., sale 10,447 shares at $167.54 during a trade that took place back on Feb 13, which means that LINEBARGER NORMAN THOMAS is holding 85,189 shares at $1,750,283 based on the most recent closing price.
Stock Fundamentals for CMI
Current profitability levels for the company are sitting at:
- +10.63 for the present operating margin
- +25.29 for the gross margin
The net margin for Cummins Inc. stands at +9.59. The total capital return value is set at 22.70, while invested capital returns managed to touch 24.57. Equity return is now at value 23.10, with 8.50 for asset returns.
Based on Cummins Inc. (CMI), the company’s capital structure generated 38.20 points at debt to equity in total, while total debt to capital is 27.64. Total debt to assets is 14.53, with long-term debt to equity ratio resting at 25.92. Finally, the long-term debt to capital ratio is 18.76.
Currently, EBITDA for the company is 389.00M with total debt to EBITDA at 0.75. When we switch over and look at the enterprise to sales, we see a ratio of 1.29, with the company’s debt to enterprise value settled at 0.09. The receivables turnover for the company is 6.01 and the total asset turnover is 1.22. The liquidity ratio also appears to be rather interesting for investors as it stands at 1.50.