Cummins Inc. (CMI) Shares Tick Up after Upgrade at Barclays PLC

Cummins Inc. (NYSE: CMI) shares rose in value in early trading today on slower trade volume than normal after a number of analysts weighed in on the investing value of the stock with a upgraded rating.

Meanwhile, U.S. stocks edged lower Monday, with major indexes retreating from record levels.

The Dow Jones Industrial Average DJIA, -0.31% fell 48 points, or 0.2%, to 19,916, while the S&P 500 index SPX, -0.29% lost 5 points to 2,272, a drop of 0.2%. The Nasdaq Composite Index COMP, -0.03% rose 4 points to 5,529, a gain of about 0.1%.

Analysts at Barclays PLC upgraded shares of Cummins Inc. (NYSE: CMI) from Underweight to Equal Weight today. Barclays PLC currently has a rating of Equal Weight on the stock. As a means of comparison, a number of other analysts have commented on the company in recent days, and the company has earned a consensus one-year price target of $133.90, lower than the opening price of $139.81. Cummins Inc. stock has a 52-week high of $147.10. Stock prices sometimes get a boost to the upside when analysts upgrade a stock.

Shares of Cummins Inc. (NYSE: CMI) opened at $139.81 yesterday and traded in a range between, $138.34 and $139.81, and last traded at $138.96, a jump of $0.24 from the previous closing price.

Cummins Inc. (NYSE: CMI) currently has a market cap of 23.29B.

Cummins Inc. (NYSE: CMI) Average Daily Trading Volume

The stock’s average daily volume is 1,622,170 shares out of a total float 167,083,000 and some 97,121 shares traded hands yesterday, 74 percent below normal. lower than normal. Look for trading volume to pick up in the coming days as investors often use upticks in trading volume to identify heavy volume accumulation or distribution by institutional investors.

As with all potential breakouts, investors look for volume to be at least 40%-50% higher than normal on the breakout to show that fund managers and other professional investors are jumping in.

Institutional sponsorship is defined by ownership of a stock by mutual funds, banks, pension funds and other large institutions.

Professional investors such as these have substantial teams of analysts that investigate thousands of stocks, so it is good validation to see them taking a postion in 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.

By identifying trends, moving averages allow investors to make those trends work in their favor and increase the number of successful trades.

Trades for Cummins Inc. (NYSE: CMI) have ranged from $79.88 – 147.10, and the stock now has a 50-day MA of $139.62 and 200-day MA of $126.99. Today’s last price is 5.53%% below the 52 week high of $147.10.

Earnings growth is a critical factor to look at when buying stocks and investors identify companies that have grown their earnings at least 25% or more for a 3 year period.

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