Analyzing the Price-to-Earnings Ratio of Cummins Inc. (CMI)

The price-to-earnings ratio for Cummins Inc. (NYSE: CMI) is above average at 57.67x. The 36-month beta value for CMI is also noteworthy at 1.04. There are mixed opinions on the stock, with 4 analysts rating it as a “buy,” 3 rating it as “overweight,” 14 rating it as “hold,” and 1 rating it as “sell.”

The public float for CMI is 139.45M, and at present, short sellers hold a 23.30% of that float. The average trading volume of CMI on April 04, 2024 was 3.22M shares.

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CMI) stock’s latest price update

The stock price of Cummins Inc. (NYSE: CMI) has dropped by -0.41 compared to previous close of 295.87. Despite this, the company has seen a gain of 0.98% in its stock price over the last five trading days. Invezz reported 2024-03-29 that Cummins (NYSE: CMI) stock price has silently surged to a record high, joining other industrial giants like Emerson Electric, Rolls-Royce, and Illinois Tool Works. It has jumped for three straight weeks, reaching a record high of $295.

CMI’s Market Performance

CMI’s stock has risen by 0.98% in the past week, with a monthly rise of 8.61% and a quarterly rise of 22.18%. The volatility ratio for the week is 1.26% while the volatility levels for the last 30 days are 2.25% for Cummins Inc. The simple moving average for the last 20 days is 4.80% for CMI’s stock, with a simple moving average of 21.65% for the last 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 11.34% 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 -0.82% of loss for the given period.

Volatility was left at 2.25%, however, over the last 30 days, the volatility rate increased by 1.26%, as shares surge +8.59% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading +25.99% upper at present.

During the last 5 trading sessions, CMI rose by +0.98%, which changed the moving average for the period of 200-days by +24.23% in comparison to the 20-day moving average, which settled at $282.34. In addition, Cummins Inc. saw 23.00% 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 1.37. 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

In summary, Cummins Inc. (CMI) has had a better performance as of late. Analysts have bullish opinions on the stock, with some viewing 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.

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