Cummins (CMI) stock was performing bullish as per its all-time price performance. But on July 24, 2023, CMI stock declined by 0.33%. However, last weekend, the increased activity of bears was clearly noted which continued earlier this week.
The increased trading volume further shows the dominance of active bears in the market. Although, ahead of Q2 2023, CMI shares may further experience more price volatility.
Cummins (CMI) Stock Price Analysis
Cummins (NYSE: CMI) stock accumulated bears who drove its price from the opening price of $259.07 to yesterday’s low of $257.54. However, in the intraday trading session, CMI stock rose up to $260.56 while closing at $257.89 and showed a 0.33% price decline.
It must be noted that the 52-week range of CMI stock is between $200.40 to $261.91.
As the above price chart shows, the rising graph of CMI share price indicates investors’ positive support which took its RSI to its overbought zone. The recent increased trading volume activity with bear dominance was not seen in the last 3 months.
Even when the company reported its Q1 2023 report earlier in May 2023, trading volume activity was quite low as compared to its current performance.
Furthermore, the analysts have set their 1-year price target at $257.40 which is down 0.19% from the recent closing price of CMI stock. The maximum price estimate set by the analysts is showing at $290.00 whereas the minimum estimate is at $216.00. In the past 3-months, analysts have given a “buy” rating to Cummins Inc.
The Fundamentals of Cummins
Cummins Inc., a diesel engine manufacturer, has a market cap of nearly $36.50 Billion. According to its Q1 2023 earnings and revenue report, the net income in the quarter is $790.00 Million. CMI price-to-sales ratio is 1.22 whereas the company has an Enterprise Value to EBITDA ratio of 11.40.
CMI dividends are paid quarterly and the next dividend per share is expected to be $1.68, as of now, Dividend Yield (TTM)% is 2.43%.
According to its Q1 2023, CMI earnings per share (EPS) is $6.70 whereas the estimate was $4.72, which accounts for a 42.01% surprise. The revenue for the same period amounts to $8.45 Billion despite the estimated figure of $8.10 Billion. For the upcoming quarter, the estimated EPS is $5.25, and revenue is expected to reach $8.39 Billion.
As the above chart shows, besides CMI stock price, there are some other similar industry stocks that showed a bearish trend in the recent 1-day trading session. Wabash National Corporation (NYSE: WNC), Twin Disc Inc. (NASDAQ: TWIN), Federal Signal Corp. (NYSE: FSS), Terex Corp. (NYSE: TEX), and L B Foster Co. (NASDAQ: FSTR) were bearish in yesterday’s trading session.
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational ideas only and do not establish financial, investment, or other advice. Investing in or trading crypto or stock comes with a risk of financial loss.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
Source: https://www.thecoinrepublic.com/2023/07/25/cummins-cmi-stock-showed-bears-dominance-ahead-of-q2-2023/