JP Morgan lowered the price target for the Cummins Inc. (NYSE:CMI) stock to “a Neutral”. The rating was released on August 18, 2022, according to finviz. We previously noted in another research note published on July 20, 2022 by Bernstein that downgraded the stock from an Outperform to a Mkt perform with a price target of $190 for CMI stock. The research report from Morgan Stanley has resumed the stock to Equal-Weight, with a price target set at $205. The stock was downgraded by UBS, who disclosed in a research note on March 18, 2022, from Buy to Neutral and set the price objective to $214. In their research brief published August 24, 2021, Goldman analysts downgraded the Cummins Inc. stock from Buy to Neutral with a price target of $230.
The latest trade, Performances and Moving Averages give us the following Picture
The share price of Cummins Inc. (NYSE:CMI) raised 2.05% to close Tuesday’s market session at $247.86, higher as compared to yesterday’s close. The stock price fluctuated between $240.00 and $251.11 throughout the trading session with the volume trading being 1675966 shares, which represented a significant variation when compared to the three months average volume of 936.80K shares. The firm’s stock price fluctuated -0.51% within the last five trades and 2.33% within the last 30 trades, which was a significant change from the beginning of this year. Despite the fact that the share price increased 20.15% in the last 6 months and 6.47% was added to its value over the previous 3 months. CMI stock is trading at a margin of 1.94%, 1.48% and 13.16% apart from the 20-Day, 50-Day and 200-Day Simple Moving Average prices.
As of the close of trading, CMI deals in the Industrials domain. The stock is trading -2.60 percent below its 52-week high and 34.51 percent above its 52-week low. For example, looking both at the price and the high and low measurements of 52 weeks will give you a clearer picture of the direction the price is heading. The firm’s Weighted Alpha is 17.65. A positive weighted alpha indicates the firm has done well over the course of the year, whereas one below 0 indicates that the firm has done poorly.
What Does Cummins Inc.’s Profitability and Valuation Ratios Tell Us About the Stock?
With regard to the profitability of the company, the operating margin is currently at 10.00 percent and the profit margin is 7.30 percent, and the company has reported a gross margin of 23.80 percent. The profit margin, also known as the revenue ratio or gross profit ratio, is an efficiency figure used to estimate the business’s profitability by comparing net income and sales. The higher the number, the more profits are generated for the company and vice versa.
The stock’s market cap achieved a total value of $34.94 billion as of the last trading session. Market capitalization is the total value of all outstanding shares of a corporation and it is used to measure a company’s market value. The price-to-earnings ratio for Cummins Inc. (NYSE:CMI) is 18.47. The price-to-earnings ratio is a method of assessing corporate values by comparing them to their per-share profit. Forward P/E stands at 12.54. Forward price-to-earnings is calculated using predicted earnings for the next financial year’s P/E determination. The stock has achieved an effective Price-to-Sales Ratio of 1.34 that mirrors the cost to be found for sales by the market. The firm managed a Price-to-Book ratio of 4.17, which equates the market value of a stock with its book value.
Is Insider Trading a Real Thing?
Almost all investors and traders prefer to invest in shares controlled by the management of a corporation as a management company will be more likely to run the business itself and to never conduct things against the management’s desires and will always try to do what is best for their shareholders. Currently, 0.20 percent of Cummins Inc. shares are owned by insiders, and 85.40 percent are held by financial institutions. ChangDiaz Franklin R, the Director at Cummins Inc. (CMI) has sold 3,200 shares of firm on Nov 16 at a price of $249.34 against the total amount of $0.8 million. In another inside trade, Di Leo Allen Bruno V, Director of Cummins Inc. (NYSE:CMI) sold 950 shares of the firm on Nov 16 for a total worth of $0.24 million at a price of $250.30. An inside trade which took place on Nov 14, VP – Chief Administrative Off. of Cummins Inc. Barner Sharon R sold 2,442 shares of firm against total price of $0.61 million at the cost of $251.76 per share.