Cummins stock: buy or sell?
November 19th, 2019
Cummins Inc. designs, manufactures, distributes, and services diesel and natural gas engines, and engine-related component products worldwide.
Should I buy Cummins stock?Make a decision about when to buy or sell stocks is one of the hardest parts of being a trader or investor. That's why is so important to choose your own trading strategy that fits your character as inversor. There are thousands of trading strategies for you to choose, but at Stocks2.com we prefer those that are simple but successful.
None of our preferred buy setups matches with Cummins stock situation right now, therefore this is not a suitable entry point.
|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 published by financial analysts to indicate a particular stock's attractiveness.At Stocks2.com, we detected 11 ratings published for CMI stock in the last 30 days.
|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 stayed steady a bad -0.27% and closed at $182.97.
Cummins shares stayed stable -0.27% to $182.97 today. On Oct/10 CMI price bounced up over the SMA of 200 days demonstrating to be a significant support for this stock. From a daily outlook perspective, CMI is drawing an uptrend of rising tops and rising bottoms. Since its last top on November 8th at $185.40, price slid and found support around $179.66. Breaking down under $179.66 would cancel the current uptrend and it might slide further to test lower supports. Note that $185.40 might act as a resistance line. If Cummins breakouts over $185.40 with average or higher volume, this would be a clear signal that the uptrend resumes. Since SMA50d and SMA100d crossed up on November/4, CMI price climbed $7.66 per share (4.37%). On November 8th, CMI hit new all time highs, pushing higher previous ATH of $183.21 recorded on Nov/7. New ATHs are usual entry points for many trading setups as there aren't higher resistences.
Shares of Cummins ended this week at $182.97 and depreciated an ugly -0.56%. Early November CMI skyrocketed a brilliant 5.21% in just one week.
Not so far away is the last all-time high Cummins marked early November. Cummins stock is trading in the range of its last top and last bottom. Loosing would mean breaking the current uptrend. Breakdowns under last bottom are selling point signals for some trading strategies. Since early September when CMI stock price broke up the SMA40w line, it gained $34.76 (23.45%). Since mid January when SMA20w and SMA40w crossed up, CMI price gained $47.60 per share (35.16%).
Cummins stock price history
Cummins stock historical price chart
CMI stock reached all-time highs on Nov/8 with a price of $185.40.
Cummins stock price target is $167.90Nobody can reliably foresee how stock prices may evolve in the future. However, financial institutions invest time and resources to provide the most accurated estimations to help investors to make their decisions. You should not follow the analysts' CMI stock price predictions in the hope that they will be met as they may be wrong and not met. For the last month we found 7 price forecasts for CMI stock:
|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 ShareOn February, Cummins didn't meet the expectations of the experts and posted a fateful EPS of $3.48 per share when experts were expecting $3.82.
|Quarter||Reporting date||Estimated EPS||Actual EPS||Surprise|
Annual financial resultsIn 2018, Cummins annual turnover rocketed an amazing 16.36% to $23,771.00 M dollars from $20,428.00 marked in 2017. In contrast, its profit margin (compared to revenues) raised to 9.01%, that is $2,141.00 million.
|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 sales for 2018-Q4, a 3.08% up compared to previous quarter. Reported quarter earnings marked $579.00 million 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 turnover to same quarter last year, Cummins sales marked a cool growth and skyrocketed 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 invest in shares of a company, it's worth to overview 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||$28.0 B||$258.7 M||$9.0 B||$79.1 B||$14.7 B|
|Total shares||153.2 M||42.5 M||206.5 M||552.7 M||1,350.0 M|
|Float shares||152.3 M||40.5 M||204.8 M||551.5 M||972.0 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%|
|Tuesday, November 19th, 2019|
|Day range||$181.27 - $184.37|
|Average true range||$3.32|
|50d mov avg||$168.28|
|100d mov avg||$162.69|
|200d mov avg||$159.87|
Cummins performanceTo measure stock performance is always good to compare with competitors or related stocks. For Cummins, the comparison is made against Briggs & Stratton, BorgWarner, Caterpillar, CNH Industrial, General Electric, Navistar International, PACCAR, Regal Beloit and Westport Fuel Systems.
|BGGBriggs & Stratton||49.63%||-36.63%||-57.77%|
|WPRTWestport Fuel Sys...||-0.38%||3.94%||28.16%|
Cummins competitorsWe selected a few stocks to conform a list of Cummins competitors to examine 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