Worth Watching: Is Cummins Inc. a Buy? The Stock Reaches 52-Week High Today

Worth Watching: Is Cummins Inc. a Buy? The Stock Reaches 52 Week High Today

The stock of Cummins Inc. (NYSE:CMI) hit a new 52-week high and has $170.73 target or 33.00% above today’s $128.37 share price. The 7 months bullish chart indicates low risk for the $21.76B company. The 1-year high was reported on Sep, 30 by Barchart.com. If the $170.73 price target is reached, the company will be worth $7.18 billion more.
The 52-week high event is an important milestone for every stock because it shows very positive momentum and is time when buyers come in. During such notable technical setup, fundamental investors usually stay away and are careful shorting or selling the stock. About 675,501 shares traded hands. Cummins Inc. (NYSE:CMI) has risen 27.24% since February 26, 2016 and is uptrending. It has outperformed by 16.81% the S&P500.

Analysts await Cummins Inc. (NYSE:CMI) to report earnings on October, 25. They expect $1.93 earnings per share, down 9.81% or $0.21 from last year’s $2.14 per share. CMI’s profit will be $327.15 million for 16.63 P/E if the $1.93 EPS becomes a reality. After $2.40 actual earnings per share reported by Cummins Inc. for the previous quarter, Wall Street now forecasts -19.58% negative EPS growth.

Cummins Inc. (NYSE:CMI) Ratings Coverage

Out of 19 analysts covering Cummins (NYSE:CMI), 3 rate it a “Buy”, 3 “Sell”, while 13 “Hold”. This means 16% are positive. $162 is the highest target while $79 is the lowest. The $109.28 average target is -14.87% below today’s ($128.37) stock price. Cummins has been the topic of 44 analyst reports since July 22, 2015 according to StockzIntelligence Inc. The firm earned “Hold” rating on Thursday, September 1 by Jefferies. The firm has “Buy” rating given on Monday, August 24 by Standpoint Research. Morgan Stanley downgraded Cummins Inc. (NYSE:CMI) on Wednesday, October 28 to “Underweight” rating. The rating was maintained by Citigroup with “Neutral” on Friday, May 13. The stock has “Neutral” rating given by UBS on Tuesday, October 20. The firm has “Sell” rating by Deutsche Bank given on Wednesday, September 7. The stock of Cummins Inc. (NYSE:CMI) earned “Outperform” rating by Macquarie Research on Friday, February 5. On Friday, September 25 the stock rating was downgraded by William Blair to “Market Perform”. The company was downgraded on Monday, April 11 by Macquarie Research. The rating was initiated by CLSA on Friday, September 30 with “Buy”.

According to Zacks Investment Research, “Cummins Inc. is one of the leading worldwide designers and manufacturers of diesel engines. The company also produces natural gas engines and engine components and subsystems. Cummins provides power and components for a wide variety of equipment in its key businesses: engine, power generation, and filtration.”

Insitutional Activity: The institutional sentiment decreased to 0.95 in 2016 Q2. Its down 0.12, from 1.07 in 2016Q1. The ratio is negative, as 75 funds sold all Cummins Inc. shares owned while 250 reduced positions. 62 funds bought stakes while 246 increased positions. They now own 134.04 million shares or 12.52% less from 153.23 million shares in 2016Q1.
American Natl Registered Inv Advisor last reported 0.23% of its portfolio in the stock. Pinnacle Assocs Limited holds 1.55% or 639,971 shares in its portfolio. World Asset Management Inc owns 16,592 shares or 0.07% of their US portfolio. Texan Capital Mngmt accumulated 0.61% or 11,873 shares. Beacon Cap Management holds 200 shares or 0% of its portfolio. holds 0% of its portfolio in Cummins Inc. (NYSE:CMI) for 3.49 million shares. Johnson Investment Counsel owns 4,718 shares or 0.02% of their US portfolio. Meiji Yasuda Asset Mngmt Limited has 0.06% invested in the company for 3,562 shares. Northern Trust accumulated 0.08% or 2.20M shares. Checchi Cap Advisers Limited Liability Co last reported 1,280 shares in the company. Moreover, Whittier Tru Of Nevada has 0% invested in Cummins Inc. (NYSE:CMI) for 75 shares. Us Savings Bank De owns 149,329 shares or 0.06% of their US portfolio. Utd Fire Grp accumulated 67,630 shares or 3.04% of the stock. Columbia Asset Mgmt owns 3,400 shares or 0.14% of their US portfolio. The Missouri-based Benjamin F Edwards has invested 0.1% in Cummins Inc. (NYSE:CMI).

Insider Transactions: Since April 18, 2016, the stock had 0 buys, and 15 sales for $5.30 million net activity. Ward Pat sold 5,000 shares worth $612,500. Shares for $123,446 were sold by HERMAN ALEXIS M. 1,463 shares were sold by Padmanabhan Srikanth, worth $164,677. 3,000 shares were sold by CHAPMAN STEVEN M, worth $375,000 on Friday, August 5. HUNT MARSHA L also sold $63,132 worth of Cummins Inc. (NYSE:CMI) shares. $104,099 worth of Cummins Inc. (NYSE:CMI) shares were sold by Ewald Thaddeus B. On Friday, August 5 Freeland Richard Joseph sold $312,500 worth of the stock or 2,500 shares.

Another recent and important Cummins Inc. (NYSE:CMI) news was published by Seekingalpha.com which published an article titled: “Cummins Seems To Be In A Period Of Transition” on September 27, 2016.

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