Cummins stock: buy or sell?

CMI stock price: $141.97 -3.21% At close on August 23rd, 2019

Updated on:
August 23rd, 2019

2

Shares of Cummins closed today at $141.97 and eased a shocking -3.21%.

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.

Buy setupElegible
New all-time highNo
New 52 week highNo
Price crossing up 200d MANo
100d MA crossing up 200d MANo
This doesn't mean CMI will fall in coming sessions, or it will not rise higher. Simply, it doesn't match our recommended trading systems.

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.

Is CMI a good stock to buy?
DateAnalyst / BrokerPrevious ratingCurrent rating
2019-7-31Morgan Stanleyn/aEqual Weight
2019-7-31Credit Suisse Groupn/aOutperform
2019-7-2Loop CapitalHoldSell
2019-7-16Standpoint ResearchBuyHold
2019-6-3Wells Fargo & Con/aMarket Perform
2019-5-1UBS GroupSellSell
2019-5-1Credit Suisse Groupn/aOutperform
2019-4-16CitigroupNeutralBuy
2019-2-7Robert W. BairdNeutralOutperform
2019-2-7OppenheimerOutperformMarket Perform
2019-2-7OppenheimerOutperformMarket Perform

Cummins stock analysis

Daily outlook

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%).

CMI stock chart (daily)

Weekly outlook

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%.

CMI stock chart (weekly)

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 $167.90

How 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:
CMI stock price predictions
DateAnalyst / BrokerActionPrevious targetCurrent targetDiff
2019-7-31Morgan StanleyLowers Target$167.00$162.00-3%
2019-7-31Credit Suisse GroupReiterates$198.00$203.002.5%
2019-7-2Loop CapitalDowngrades$168.00$145.00-13.7%
2019-6-3Wells Fargo & CoLowers Target$175.00$165.00-5.7%
2019-5-1UBS GroupRaises Target$130.00$135.003.8%
2019-5-1Credit Suisse GroupReiterates$165.00$198.0020%
2019-4-16CitigroupUpgradesn/a$167.00-
(in average)$167.20$167.900.0%
Moving in a range from $203.00 and $135.00, the price forecast for Cummins stock is $167.90. In average, analysts' outlook on CMI price target is stable from previous estimations.

Financials and fundamental analysis

Earnings date and Earnings per Share

Cummins let down analysts on February when it reported an Earnings per Share (EPS) of $3.48 when the analysts' forecast was $3.82.
CMI earnings date and EPS evolution
QuarterReporting dateEstimated EPSActual EPSSurprise
2017-Q2-n/a2.53n/a
2017-Q32017-10-312.462.7110.2%
2017-Q42018-02-062.673.0313.5%
2018-Q12018-05-012.913.313.4%
2018-Q22018-07-313.674.1412.8%
2018-Q32018-10-303.754.058.0%
2018-Q42019-02-063.823.48-8.9%
2019-Q1-n/an/an/a
2019-Q2-n/an/an/a
2019-Q3-n/an/an/a

Annual financial results

Compared 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%.

CMI annual Sales and Income evolution
YearSalesYoYIncome/(margin)YoY
2013$17,300 M-$1,480 M8.6%-
2014$19,221 M11.10%$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 M16.67%$999 M4.9%-28.34%
2018$23,771 M16.36%$2,141 M9.0%114.31%

Quarterly financial results

Cummins 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%.
CMI quarterly Sales and Income evolution
QuarterSales1QoQ2Income1/(margin)QoQ2
2017-Q2$5,080 M-$424 M8.3%-
2017-Q3$5,285 M4.04%$453 M8.6%6.84%
2017-Q4$5,476 M3.61%$-274 M-5.0%-160.49%
2018-Q1$5,570 M1.72%$325 M5.8%-218.61%
2018-Q2$6,132 M10.09%$545 M8.9%67.69%
2018-Q3$5,943 M-3.08%$692 M11.6%26.97%
2018-Q4$6,126 M3.08%$579 M9.5%-16.33%
2019-Q1$6,004 M-1.99%$663 M11.0%14.51%

Cummins ownership

When 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:

CMIBGGBWACATCNHI
Market cap$22.4 B$185.9 M$6.4 B$65.2 B$12.3 B
Total shares157.5 M42.1 M207.6 M571.9 M1,350.0 M
Float shares156.9 M40.5 M204.8 M561.4 M1,340.0 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 selling0.0%0.0%0.0%0.0%0.0%

Cummins summary

Friday, August 23rd, 2019
Open$145.59
Close$141.97
Day range$141.15 - $146.23
Previous close$146.68
Session gain-3.21%
Average true range$4.05
50d mov avg$161.72
100d mov avg$161.15
200d mov avg$152.35
Daily patternlt02c
Weekly pattern lt06c

Cummins performance

To 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:
Stock3m6m12m
CMICummins-10.43%-7.21%3.88%
BGGBriggs & Stratton-54.34%-66.44%-77.60%
BWABorgWarner-13.02%-25.31%-29.33%
CATCaterpillar-6.50%-16.64%-15.28%
CNHICNH Industrial3.16%-14.35%-21.02%
GEGeneral Electric-13.24%-16.09%-31.00%
NAVNavistar Internat...-22.59%-37.96%-43.57%
PCARPACCAR-6.99%-9.66%-2.13%
RBCRegal Beloit-5.35%-16.38%-14.45%
WPRTWestport Fuel Sys...10.24%87.92%-2.44%

Cummins competitors

We chose a few stocks to conform a list of Cummins competitors to watch if you are interested in investing in CMI:

Latest Cummins stock news