Cummins Inc. [NYSE: CMI] traded at a high on Wednesday, posting a 2.35 gain after which it closed the day’ session at $260.47. The company report on February 14, 2024 at 7:35 AM that Cummins Launches Exchange Offer for Separation of Atmus Filtration Technologies Inc.
Today, Cummins Inc. (NYSE: CMI) (“Cummins”) announced that it will commence an exchange offer to fully split off its remaining interest in Atmus Filtration Technologies Inc. (NYSE: ATMU) (“Atmus”). In May 2023, Atmus completed its initial public offering where 19.5%, or 16,243,070 shares, of Atmus’ common stock was sold, with Cummins retaining the remaining 80.5% of Atmus’ common stock. Through the planned exchange offer, Cummins shareholders will have the option to exchange all, some or none of their shares of Cummins common stock for shares of Atmus common stock, subject to the terms of the exchange offer. The exchange offer is expected to be tax-free for U.S. Federal income tax purposes, except with respect to cash received in lieu of a fractional share.
“This separation will create value for both Cummins and Atmus, allowing Cummins to continue its focus on key strategic initiatives and innovating in both core and new technologies, while allowing the filtration business the ability to operate and grow with flexibility,” said Cummins Chair and CEO Jennifer Rumsey. “Leveraging its advanced filtration technologies and capabilities, Atmus is well positioned to grow into new markets and help both existing and new customers be successful. We believe now is the right time to distribute our Atmus shares, and we are confident that the share exchange is the appropriate path forward to bring the greatest value to shareholders. I am excited to see what the future holds for the company.”.
The results of the trading session contributed to over 4606072 shares changing hands. Over the past one week, the price volatility of Cummins Inc. stands at 1.66% while the volatility over the past one month is 2.03%.
The market cap for CMI stock reached $36.95 billion, with 141.80 million shares outstanding and 139.49 million shares in the current float. Compared to the average trading volume of 789.67K shares, CMI reached a trading volume of 4606072 in the most recent trading day, which is why market watchdogs consider the stock to be active.
What do top market gurus say about Cummins Inc. [CMI]?
Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for CMI shares is $262.71 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on CMI stock is a recommendation set at 2.52. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.
TD Cowen have made an estimate for Cummins Inc. shares, keeping their opinion on the stock as Outperform, with their previous recommendation back on February 07, 2024.
The Average True Range (ATR) for Cummins Inc. is set at 5.35, with the Price to Sales ratio for CMI stock in the period of the last 12 months amounting to 1.09. The Price to Book ratio for the last quarter was 4.17, with the Price to Cash per share for the same quarter was set at 19.32. Price to Free Cash Flow for CMI in the course of the last twelve months was 13.42 with Quick ratio for the last quarter at 0.74.
How has CMI stock performed recently?
Cummins Inc. [CMI] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 4.98. With this latest performance, CMI shares gained by 10.95% in over the last four-week period, additionally plugging by 12.00% over the last 6 months – not to mention a rise of 4.67% in the past year of trading.
Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for CMI stock in for the last two-week period is set at 69.59, with the RSI for the last a single of trading hit 73.34, and the three-weeks RSI is set at 66.64 for Cummins Inc. [CMI]. The present Moving Average for the last 50 days of trading for this stock 240.13, while it was recorded at 254.70 for the last single week of trading, and 233.31 for the last 200 days.
Cummins Inc. [CMI]: Deeper insight into the fundamentals
Cummins Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 0.74 and a Current Ratio set at 1.18.
Earnings analysis for Cummins Inc. [CMI]
With the latest financial reports released by the company, Cummins Inc. posted 5.55/share EPS, while the average EPS was predicted by analysts to be reported at 4.75/share. When compared, the two values demonstrate that the company surpassed the estimates by a Surprise Factor of 16.80%. The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for CMI. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Cummins Inc. go to 9.25%.
Insider trade positions for Cummins Inc. [CMI]
The top three institutional holders of CMI stocks are: VANGUARD GROUP INC with ownership of 1.3 billion shares, which is approximately 8.2815%. BLACKROCK INC., holding 1.03 billion shares of the stock with an approximate value of $176.59 billion in CMI stocks shares; and BERKSHIRE HATHAWAY INC, currently with $156.75 billion in CMI stock with ownership which is approximately 5.8325%.
