Cummins Inc. CMI Stock Analysis

Cummins Inc. stock trades under the ticker CMI & has shown recent bullishness that traders & investors should research further into for when market volatility has passed.

CMI stock closed at $215.98/share on 5/23/2023.

Cummins Inc. CMI Stock’s Technical Performance Broken Down

Cummins Inc. CMI Stock's Technical Performance Over The Past Year
Cummins Inc. CMI Stock’s Technical Performance Over The Past Year

CMI Stock Price: $215.98

10 Day Moving Average: $215.27

50 Day Moving Average: $225.90

200 Day Moving Average: $230.45

RSI: 41.96

MACD: -3.873, -3.955, 0.083

Yesterday, CMI stock completed a bullish MACD crossover, despite losing -0.94% on the day’s session.

Their RSI is on the oversold end of neutral at 41.96, with recent trading volumes being below average compared to the year prior, signaling uncertainty among investors.

Investors should be watching to see how CMI behaves around its support levels to establish where they may want to enter a position once broader market volatility has subsided.

CMI stock has support at the $215.73, $215.27 (10 day moving average), $213.46 & $211.18/share price level, with resistance overhead at the $217.41, $218.98, $222.18 & $225.90/share (50 day moving average) price levels.

Cummins Inc. CMI Stock As A Long-Term Investment

Long-term oriented investors will like CMI stock’s 12.61 P/E (ttm), but may find their 3.29 P/B (mrq) to be a bit too rich.

They recently reported +32.4% Quarterly Revenue Growth Y-o-Y, with +89% Quarterly Earnings Growth Y-o-Y.

Their balance sheet may warrant a more thorough review, with $2.44B of Total Cash (mrq) & $8.37B of Total Debt (mrq).

CMI pays a 2.83% dividend, which appears to be sustainable in the long-run, as their payout ratio is 34.7%.

86.3% of CMI stock’s outstanding share float is owned by institutional investors.

Cummins Inc. CMI Stock As A Short-Term Trade Using Options

Traders with shorter time horizons can trade options to profit from price movements in CMI stock, while protecting their portfolios from volatility.

I am looking at the contracts with the 6/16 expiration date.

The $250, $260 & $210 call options are all in-the-money, listed from highest to lowest level of open interest.

The $230, $220 & $240 puts are also all in-the-money, with the former being more liquid than the latter strikes.

Tying It All Together

CMI stock has many interesting attributes that traders & investors will find appealing.

Investors will like their recent growth metrics, as well as their sustainable dividend.

Traders will like their recent technical performance & liquid options.

All-in-all, it is worth taking a closer look into how CMI stock fits into your portfolio strategy.