The stock of Cummins Inc. (NYSE: CMI) has decreased by -0.89 when compared to last closing price of 290.34. Despite this, the company has experienced a 0.57% gain in its stock price over the last five trading sessions. Zacks Investment Research reported 2024-03-19 that In the most recent trading session, Cummins (CMI) closed at $281.01, indicating a -1.79% shift from the previous trading day.
Is It Worth Investing in Cummins Inc. (NYSE: CMI) Right Now?
Cummins Inc. (NYSE: CMI) has a higher price-to-earnings ratio of 56.32x compared to its average ratio. CMI has 36-month beta value of 1.04. Analysts have mixed views on the stock, with 4 analysts rating it as a “buy,” 3 as “overweight,” 14 as “hold,” and 1 as “sell.”
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The public float for CMI is 139.45M, and currently, short sellers hold a 4.19% ratio of that float. The average trading volume of CMI on March 26, 2024 was 3.22M shares.
CMI’s Market Performance
The stock of Cummins Inc. (CMI) has seen a 0.57% increase in the past week, with a 9.01% rise in the past month, and a 17.93% gain in the past quarter. The volatility ratio for the week is 2.31%, and the volatility levels for the past 30 days are at 2.35% for CMI. The simple moving average for the past 20 days is 5.03% for CMI’s stock, with a 19.72% simple moving average for the past 200 days.
Analysts’ Opinion of CMI
Truist, on the other hand, stated in their research note that they expect to see CMI reach a price target of $303. The rating they have provided for CMI stocks is “Hold” according to the report published on March 14th, 2024.
TD Cowen gave a rating of “Outperform” to CMI, setting the target price at $272 in the report published on February 07th of the current year.
CMI Trading at 11.72% 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 -3.15% of loss for the given period.
Volatility was left at 2.35%, however, over the last 30 days, the volatility rate increased by 2.31%, as shares surge +8.10% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading +21.13% upper at present.
During the last 5 trading sessions, CMI rose by +0.57%, which changed the moving average for the period of 200-days by +26.92% in comparison to the 20-day moving average, which settled at $275.05. In addition, Cummins Inc. saw 20.12% in overturn over a single year, with a tendency to cut further gains.
Insider Trading
Reports are indicating that there were more than several insider trading activities at CMI starting from Barner Sharon R, who sale 2,100 shares at the price of $271.29 back on Feb 28 ’24. After this action, Barner Sharon R now owns 16,899 shares of Cummins Inc., valued at $569,709 using the latest closing price.
Quintos Karen H, the Director of Cummins Inc., sale 1,000 shares at $270.24 during a trade that took place back on Feb 28 ’24, which means that Quintos Karen H is holding 2,835 shares at $270,238 based on the most recent closing price.
Stock Fundamentals for CMI
Current profitability levels for the company are sitting at:
- 0.05 for the present operating margin
- 0.24 for the gross margin
The net margin for Cummins Inc. stands at 0.02. The total capital return value is set at 0.09. Equity return is now at value 8.25, with 2.36 for asset returns.
Based on Cummins Inc. (CMI), the company’s capital structure generated 0.45 points at debt to capital in total, while cash flow to debt ratio is standing at 0.55. The debt to equity ratio resting at 0.81. The interest coverage ratio of the stock is 4.7.
Currently, EBITDA for the company is 3.02 billion with net debt to EBITDA at 1.67. When we switch over and look at the enterprise to sales, we see a ratio of 1.35. The receivables turnover for the company is 6.1for trailing twelve months and the total asset turnover is 1.06. The liquidity ratio also appears to be rather interesting for investors as it stands at 1.18.
Conclusion
To put it simply, Cummins Inc. (CMI) has had a better performance in recent times. Analysts have a bullish opinion on the stock, with some rating it as a “buy” and others as a “hold”. It is worth mentioning that the stock is currently trading in close proximity to its 50-day moving average and its 52-week high.
