Is Selling Cummins Inc. (CMI) Here a Winning Strategy?

June 17, 2018 - By Nellie Frank

Cummins Inc. (NYSE:CMI) Logo

Investors sentiment decreased to 0.9 in Q1 2018. Its down 0.37, from 1.27 in 2017Q4. It dropped, as 70 investors sold Cummins Inc. shares while 284 reduced holdings. 71 funds opened positions while 246 raised stakes. 128.35 million shares or 2.63% less from 131.82 million shares in 2017Q4 were reported.
Whittier Tru Of Nevada Incorporated invested 0.01% in Cummins Inc. (NYSE:CMI). Massachusetts-based Rhumbline Advisers has invested 0.11% in Cummins Inc. (NYSE:CMI). 4,578 are owned by Benjamin F Edwards Inc. Moreover, Millennium Management Ltd has 0.16% invested in Cummins Inc. (NYSE:CMI) for 736,626 shares. Lingohr & Partner Asset Mngmt Gmbh reported 6,391 shares stake. Crossvault Capital Limited Co holds 1,300 shares. Parallax Volatility Advisers Lp holds 0% or 6,844 shares in its portfolio. Walter & Keenan Financial Consulting Mi Adv holds 0.22% of its portfolio in Cummins Inc. (NYSE:CMI) for 3,100 shares. Adams Asset Advsrs Limited Liability Com stated it has 0.8% of its portfolio in Cummins Inc. (NYSE:CMI). Moreover, Lazard Asset Mngmt Lc has 0.05% invested in Cummins Inc. (NYSE:CMI) for 178,120 shares. Contravisory Invest Management invested 0% of its portfolio in Cummins Inc. (NYSE:CMI). West Coast Finance Ltd Liability Com owns 21,744 shares for 1.01% of their portfolio. Goldman Sachs stated it has 0.05% of its portfolio in Cummins Inc. (NYSE:CMI). Fjarde Ap invested 0.11% in Cummins Inc. (NYSE:CMI). Suntrust Banks Inc holds 0.03% or 26,701 shares.

The stock of Cummins Inc. (NYSE:CMI) hit a new 52-week low and has $137.40 target or 4.00 % below today’s $143.13 share price. The 5 months bearish chart indicates high risk for the $23.51 billion company. The 1-year low was reported on Jun, 17 by Barchart.com. If the $137.40 price target is reached, the company will be worth $940.48M less.
The 52-week low event is an important milestone for every stock because it shows very negative momentum and is time when sellers come in. During such technical setups, fundamental investors usually stay away and are careful buying the stock.

The stock increased 0.87% or $1.24 during the last trading session, reaching $143.13. About 1.73M shares traded or 11.31% up from the average. Cummins Inc. (NYSE:CMI) has declined 5.98% since June 17, 2017 and is downtrending. It has underperformed by 18.55% the S&P500.

Analysts await Cummins Inc. (NYSE:CMI) to report earnings on August, 7. They expect $3.63 EPS, up 43.48 % or $1.10 from last year’s $2.53 per share. CMI’s profit will be $596.30 million for 9.86 P/E if the $3.63 EPS becomes a reality. After $3.30 actual EPS reported by Cummins Inc. for the previous quarter, Wall Street now forecasts 10.00 % EPS growth.

Cummins Inc. (NYSE:CMI) Ratings Coverage

Among 17 analysts covering Cummins (NYSE:CMI), 2 have Buy rating, 2 Sell and 13 Hold. Therefore 12% are positive. Cummins had 25 analyst reports since January 11, 2018 according to SRatingsIntel. UBS downgraded the stock to “Sell” rating in Wednesday, May 2 report. The stock of Cummins Inc. (NYSE:CMI) has “Equal-Weight” rating given on Wednesday, January 24 by Barclays Capital. The firm has “Neutral” rating by Buckingham Research given on Wednesday, May 2. As per Wednesday, May 2, the company rating was maintained by Oppenheimer. The rating was upgraded by Deutsche Bank on Monday, March 19 to “Hold”. The rating was maintained by RBC Capital Markets on Thursday, January 11 with “Hold”. Bank of America upgraded the stock to “Buy” rating in Friday, January 19 report. The stock has “Hold” rating by Piper Jaffray on Thursday, April 5. The rating was maintained by BMO Capital Markets on Tuesday, April 17 with “Hold”. The company was maintained on Friday, May 4 by Citigroup.

Another recent and important Cummins Inc. (NYSE:CMI) news was published by Globenewswire.com which published an article titled: “Recent Analysis Shows Independent Bank, Teradyne, Cummins, Concho Resources, Ameren, and Aflac Market …” on June 11, 2018.

Cummins Inc., together with its subsidiaries, designs, makes, distributes, and services diesel and natural gas engines, and engine-related component products worldwide. The company has market cap of $23.51 billion. It operates through Engine, Distribution, Components, and Power Systems divisions. It has a 25.74 P/E ratio. The Engine segment makes and markets a range of diesel and natural gas powered engines under the Cummins and other customer brand names for the heavy- and medium-duty truck, bus, recreational vehicle, light-duty automotive, construction, mining, marine, rail, gas and oil, defense, and agricultural markets.

Cummins Inc. (NYSE:CMI) Institutional Positions Chart

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