Cummins Inc. (CMI) Performance and Fundamentals Dashboard tells a completely different story

Cummins Inc. (NYSE: CMI) stock jumped 0.20% on Thursday to $210.96 against a previous-day closing price of $210.53. With 0.76 million shares changed hands, the volume of the stock remained lighter than its average volume of 1.08 million shares. During the session, the Specialty Industrial Machinery company that operates in wider Industrials sector, reached to the highest price of $212.76 whereas the lowest price it dropped to was $208.64. The 52-week range on CMI shows that it touched its highest point at $261.91 and its lowest point at $184.27 during that stretch. It currently has a 1-year price target of $257.77. With its current market cap of 29.59 billion, CMI has annualized dividend of $6.28 while the current yield stands at 2.98%. Beta for the stock currently stands at 1.02.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of CMI was down-trending over the past week, with a drop of -1.72%, but this was down by -7.40% over a month. Three-month performance dropped to -13.58% while six-month performance fell -15.71%. The stock gained 7.35% in the past year, while it has lost -12.93% so far this year. A look at the trailing 12-month EPS for CMI yields 17.74 with Next year EPS estimates of 19.76. For the next quarter, that number is 5.24. This implies an EPS growth rate of 3.50% for this year and -1.02% for next year. EPS is expected to grow by 11.51% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 7.30%.

Float and Shares Shorts:

At present, 141.50 million CMI shares are outstanding with a float of 140.40 million shares on hand for trading. On May 14, 2023, short shares totaled 1.79 million, which was 1.27% higher than short shares on Apr 13, 2023. In addition to Mr. Norman Thomas Linebarger as the firm’s Exec. Chairman, Ms. Jennifer W. Rumsey serves as its Pres, CEO & Director.

Institutional Ownership:

Through their ownership of 86.30% of CMI’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 43.10% of CMI, in contrast to 41.81% held by mutual funds. Shares owned by individuals account for 1.47%. As the largest shareholder in CMI with 9.07% of the stake, The Vanguard Group, Inc. holds 12,825,815 shares worth 12,825,815. A second-largest stockholder of CMI, BlackRock Fund Advisors, holds 7,509,922 shares, controlling over 5.31% of the firm’s shares. SSgA Funds Management, Inc. is the third largest shareholder in CMI, holding 6,482,278 shares or 4.59% stake. With a 3.11% stake in CMI, the Vanguard Total Stock Market ETF is the largest stakeholder. A total of 4,391,894 shares are owned by the mutual fund manager. The Vanguard 500 Index Fund, which owns about 2.35% of CMI stock, is the second-largest Mutual Fund holder. It holds 3,316,621 shares valued at 779.54 million. Fidelity 500 Index Fund holds 1.11% of the stake in CMI, owning 1,563,536 shares worth 367.49 million.


An Overview of Recent Financials:

Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Mar 30, 2023, CMI reported revenue of $6.59B and operating income of $802.00M. The EBITDA in the recently reported quarter was $1.06B and diluted EPS was $4.94.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for CMI since 0 analysts follow the stock currently. In the same way, a target price assigned to a stock can also reveal much about its potential. With CMI analysts setting a high price target of $299.00 and a low target of $216.00, the average target price over the next 12 months is $256.53. Based on these targets, CMI could surge 41.73% to reach the target high and rise by 2.39% to reach the target low. Reaching the average price target will result in a growth of 21.6% from current levels.


EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy.

Summary of Insider Activity:

Insiders traded CMI stock several times over the past three months with 22 Buys and 24 Sells. In these transactions, 49,439 shares were bought while 19,371 shares were sold. The number of buy transactions has increased to 58 while that of sell transactions has risen to 72 over the past year. The total number of shares bought during that period was 244,699 while 242,920 shares were sold.

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