The stock of CMI Corporation (NYSE:CMI) gapped down by $0.31 today and has $82.34 target or 6.00% below today’s $87.60 share price. The 9 months technical chart setup indicates high risk for the $16.01B company. The gap down was reported on Dec, 12 by Barchart.com. If the $82.34 price target is reached, the company will be worth $960.60 million less.
Gaps down are helpful for identifying a resistance level and to could also be used as a tradeable event. If traders are short the stock and it experiece gap down, then its usually advisable to hold the short for a bigger down move. Back-tests of such patterns show that two-thirds of the these patterns the stock performance worsens after the gap. The area gaps close 91% of the time, the breakaway gaps 1%, the continuation gaps 9% and the exhaustion gaps 64%. The stock decreased 2.84% or $2.56 on December 11, hitting $87.6. About 3.01 million shares traded hands. CMI Corporation (NYSE:CMI) has declined 38.20% since May 11, 2015 and is downtrending. It has underperformed by 33.78% the S&P500.
Out of 22 analysts covering Cummins (NYSE:CMI), 7 rate it “Buy”, 3 “Sell”, while 18 “Hold”. This means 25% are positive. Cummins was the topic in 23 analyst reports since July 22, 2015 according to StockzIntelligence Inc.
According to Zacks Investment Research, “Cummins Inc. is one of the leading worldwide designers and manufacturers of diesel engines. The company also produces natural gas engines and engine components and subsystems. Cummins provides power and components for a wide variety of equipment in its key businesses: engine, power generation, and filtration.” Get a free copy of the Zacks research report on CMI Corporation (CMI).
The institutional sentiment decreased to 0.97 in 2015 Q3. Its down 0.07, from 1.04 in 2015Q2. The ratio dropped, as 99 funds sold all CMI Corporation shares owned while 275 reduced positions. 64 funds bought stakes while 298 increased positions. They now own 152.29 million shares or 8.43% more from 140.45 million shares in 2015Q2.
Waverton Investment Management Ltd holds 4.04% of its portfolio in CMI Corporation for 465,231 shares. Cornerstone Investment Partners Llc owns 1.21 million shares or 3.74% of their US portfolio. Moreover, Weybosset Research & Management Llc has 3.71% invested in the company for 45,797 shares. The California-based Raub Brock Capital Management Lp has invested 3.41% in the stock. Banta Asset Management Lp, a California-based fund reported 18,515 shares.
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