Cummins stock: buy or sell?
August 23rd, 2019
Cummins Inc. designs, manufactures, distributes, and services diesel and natural gas engines, and engine-related component products worldwide.
Should I buy Cummins stock?You can't be a successful trader if you don't follow a methodolgy or system that assist you in choosing companies and the correct market timing. Following a trading plan helps to make decisions easier, quicker and with less hesitations. There are thousands of trading strategies for you to choose, but at Stocks2.com we prefer those that are simple but successful.
Currently, Cummins stock doesn't match any of these trading strategies, so our recommendation is not to buy.
|New all-time high||No|
|New 52 week high||No|
|Price crossing up 200d MA||No|
|100d MA crossing up 200d MA||No|
Is Cummins stock a buy?
Everyday, hundreds of stock ratings are posted by financial analysts to indicate a particular stock's attractiveness.At Stocks2.com, we gathered 11 ratings published for CMI stock in the last month.
|Date||Analyst / Broker||Previous rating||Current rating|
|2019-7-31||Morgan Stanley||n/a||Equal Weight|
|2019-7-31||Credit Suisse Group||n/a||Outperform|
|2019-6-3||Wells Fargo & Co||n/a||Market Perform|
|2019-5-1||Credit Suisse Group||n/a||Outperform|
|2019-2-7||Robert W. Baird||Neutral||Outperform|
Cummins stock analysis
Cummins ended today at $141.97 and eased a shocking -3.21%.
Cummins closed today at $141.97 and eased a shocking -3.21%. Since price and SMA200d lines crossed down on August/9, CMI fell $-10.40 per share (-6.83%).
Cummins closed this week at $141.97 and fell a shocking -4.04%. Counting this, it's been 4 sliding weeks in a row, loosing $-31.23 (-18.23%). Early August CMI collapsed a dreadful -5.81% in just one week.
Once Cummins failed to resist above the support, it inescapably dropped down. Possible next supports for CMI stock are 137.65. Since early August, when CMI stock price broke down the 40-weeks moving avarage line, it slid $-15.31 per share (-9.73%). Stocks below the 40w moving average line are usually not recommended for average traders. By mid January, SMA20w and SMA40w crossed up triggering a rise of 4.13%.
Cummins stock price history
Cummins stock historical price chart
CMI stock reached 52-week highs on Jul/24 at $174.36, and all-time highs 2018-01-29 with a price of 184.18.
Cummins stock price target is $167.90How much a stock will be priced tomorrow or next week is quite unpredictable However, banks and other financial institutions analysts, with the help of lots of data and algorithms do their best to predict the stock prices movement. We do not recommend to follow these stock price predictions without a critical thinking from your side, as their accuracy is usually low. We have 7 price targets for CMI stock released in the last 30 days:
|Date||Analyst / Broker||Action||Previous target||Current target||Diff|
|2019-7-31||Morgan Stanley||Lowers Target||$167.00||$162.00||-3%|
|2019-7-31||Credit Suisse Group||Reiterates||$198.00||$203.00||2.5%|
|2019-6-3||Wells Fargo & Co||Lowers Target||$175.00||$165.00||-5.7%|
|2019-5-1||UBS Group||Raises Target||$130.00||$135.00||3.8%|
|2019-5-1||Credit Suisse Group||Reiterates||$165.00||$198.00||20%|
Financials and fundamental analysis
Earnings date and Earnings per ShareCummins let down analysts on February when it reported an Earnings per Share (EPS) of $3.48 when the analysts' forecast was $3.82.
|Quarter||Reporting date||Estimated EPS||Actual EPS||Surprise|
Annual financial resultsCompared to 2017, last anual sales report draw an outstanding growth of 16.36% to $23,771.00 million dollars. When comparing 2018 vs 2017, however, profit margin (that is, the net income divided by revenues) appreciated a 4.12% to 9.01%.
|2013||$17,300 M||-||$1,480 M8.6%||-|
|2014||$19,221 M||11.10%||$1,651 M8.6%||11.55%|
|2015||$19,110 M||-0.58%||$1,399 M7.3%||-15.26%|
|2016||$17,509 M||-8.38%||$1,394 M8.0%||-0.36%|
|2017||$20,428 M||16.67%||$999 M4.9%||-28.34%|
|2018||$23,771 M||16.36%||$2,141 M9.0%||114.31%|
Quarterly financial resultsCummins reported $6,126.00 million in revenues for 2018-Q4, a 3.08% improvement compared to previous quarter. Reported quarter earnings marked $579.00 M with a profit margin of 9.45%. Profit margin declined a -2.19% compared to previous quarter when profit margin was 11.64%. When comparing sales to same quarter last year, Cummins sales marked a great growth and rocketed a 11.87%.
|2017-Q2||$5,080 M||-||$424 M8.3%||-|
|2017-Q3||$5,285 M||4.04%||$453 M8.6%||6.84%|
|2017-Q4||$5,476 M||3.61%||$-274 M-5.0%||-160.49%|
|2018-Q1||$5,570 M||1.72%||$325 M5.8%||-218.61%|
|2018-Q2||$6,132 M||10.09%||$545 M8.9%||67.69%|
|2018-Q3||$5,943 M||-3.08%||$692 M11.6%||26.97%|
|2018-Q4||$6,126 M||3.08%||$579 M9.5%||-16.33%|
|2019-Q1||$6,004 M||-1.99%||$663 M11.0%||14.51%|
Cummins ownershipWhen you are planning to buy a company, it's worth to check its ownership structure.
Management staff in all public traded companies that hold equity is required to report every transaction to the SEC. For Cummins, 0.27% of all outstanding shares are owned by its staff.
Bearish positions for CMI stock account 0.00%, no big difference from last month.
The following table compares ownership indicators for other stocks related to Cummins:
|Market cap||$22.4 B||$185.9 M||$6.4 B||$65.2 B||$12.3 B|
|Total shares||157.5 M||42.1 M||207.6 M||571.9 M||1,350.0 M|
|Float shares||156.9 M||40.5 M||204.8 M||561.4 M||1,340.0 M|
|- Institutional holdings (%)||84.5%||91.6%||94.3%||68.6%||42.0%|
|- Insider holdings (%)||0.3%||4.9%||0.6%||0.2%||26.9%|
|Shares in short selling||0.0%||0.0%||0.0%||0.0%||0.0%|
|Friday, August 23rd, 2019|
|Day range||$141.15 - $146.23|
|Average true range||$4.05|
|50d mov avg||$161.72|
|100d mov avg||$161.15|
|200d mov avg||$152.35|
Cummins performanceTo measure stock performance is always good to compare with competitors or related stocks. In the following table, we compare Cummins to Briggs & Stratton, BorgWarner, Caterpillar, CNH Industrial, General Electric, Navistar International, PACCAR, Regal Beloit and Westport Fuel Systems:
|BGGBriggs & Stratton||-54.34%||-66.44%||-77.60%|
|WPRTWestport Fuel Sys...||10.24%||87.92%||-2.44%|
Cummins competitorsWe chose a few stocks to conform a list of Cummins competitors to watch if you are interested in investing in CMI:
- Briggs & Stratton (BGG)
- BorgWarner (BWA)
- Caterpillar (CAT)
- CNH Industrial (CNHI)
- General Electric (GE)
- Navistar International (NAV)
- PACCAR (PCAR)
- Regal Beloit (RBC)
- Westport Fuel Systems (WPRT)
Latest Cummins stock news
- Seeking AlphaCummins: Dividends From DieselApril 3, 2019
- Seeking AlphaCummins: Running Your Portfolio On DieselMarch 12, 2019
- Seeking AlphaCummins: Keep On Trucking With This Undervalued StockJanuary 8, 2019
- Seeking AlphaMy Thoughts On Cummins' Q2 2018 ResultsAugust 2, 2018
- InvestorPlace3 Big Stock Charts for Wednesday: Cummins, Under Armour and Procter & GambleAugust 1, 2018