Cummins Inc. (NYSE: CMI) shares rose in value Monday Dec 19 with lighter trade volume than normal after a number of analysts weighed in on the investing value of the stock with a upgraded rating.
Meanwhile, the Dow Jones Industrial Average DJIA, +0.22% was trading up 37 points, or 0.2%, at 19,879, inching up to break the psychologically important 20,000 level.
The S&P 500 index SPX, +0.20% was up 6 points, or 0.3% at 2,264, with nine of the 11 main sectors trading higher.
The Nasdaq Composite Index COMP, +0.32% added 18 points, or 0.3% to 5,455.
Analysts at Vetr Inc. upgraded shares of Cummins Inc. (NYSE: CMI) from Sell to Buy today. With a rating of Buy on the stock, the company has a 52-week high of $147.10. A number of other analysts have spoken on the stock in recent days, and the company has earned a consensus one-year price target of $131.65, a decrease compared to the opening price of $135.73, a difference of 9.65 percent. Stock prices sometimes get a spike to the upside when analysts upgrade a stock.
Shares of Cummins Inc. (NYSE: CMI) opened at $135.73 on Tuesday and has traded in a range between, $135.55 and $137.25, and last traded at $136.42, which is a jump of $1.07 or 0.79% from the previous closing price.
Cummins Inc. (NYSE: CMI) currently has a market cap of 22.86B.
Cummins Inc. (NYSE: CMI) Average Daily Trading Volume
217,579 shares traded hands yesterday, lower than the average, out of a total float 167,060,000. Swing traders often use swings in trading volume to pinpoint heavy volume growth or circulation by institutional investors, so trading volume is likely to increase in the next few days.
As with all potential breakouts, investors look for volume to be at least 40%-50% above normal on the breakout to show that fund managers and other professional investors are jumping in.
Institutional sponsorship simply refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
These professional investors have teams of analysts researching thousands of stocks, so it is good validation to see them buying a stock you are considering.
Cummins Inc. (NYSE: CMI) Moving Averages
A moving average can also act as support or resistance. In an uptrend a 50-day, 100-day or 200-day moving average may act as a support level, as shown in the figure below.
This is because the average acts like a floor (support), so the price bounces up off of it.
In a downtrend a moving average may act as resistance; like a ceiling, the price hits it and then starts to drop again.
Traders are able to make make more useful choices on trades when they follow the activity of professional investors.
With that in mind, Cummins Inc. (NYSE: CMI) now has a 50-day MA of $136.44 and 200-day MA of $124.72. It has traded in a 52-week range between $79.88 – 147.10 and today’s last price is 7.26%% lower than the 52 week high of $147.10.
Earnings growth is an important factor to look at when buying stocks and investors identify companies that have grown their earnings at least 25% or more for 3 consecutive years.
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