Zacks Research Issues Positive Forecast for Cummins Earnings

Cummins Inc. (NYSE:CMI) – Zacks Research upped their Q1 2027 earnings per share estimates for shares of Cummins in a research note issued to investors on Thursday, July 2nd. Zacks Research analyst Team now expects that the company will earn $6.88 per share for the quarter, up from their prior estimate of $6.73. Zacks Research has a “Strong-Buy” rating on the stock. The consensus estimate for Cummins’ current full-year earnings is $29.31 per share. Zacks Research also issued estimates for Cummins’ Q2 2027 earnings at $8.62 EPS, Q3 2027 earnings at $9.00 EPS, Q4 2027 earnings at $9.26 EPS and FY2027 earnings at $33.76 EPS.

Cummins (NYSE:CMI) last announced its earnings results on Tuesday, May 5th. The company reported $6.15 earnings per share for the quarter, topping the consensus estimate of $5.63 by $0.52. Cummins had a return on equity of 25.25% and a net margin of 7.89%.The business had revenue of $8.40 billion during the quarter, compared to the consensus estimate of $8.37 billion. During the same period in the prior year, the company posted $5.96 EPS. The business’s quarterly revenue was up 2.7% on a year-over-year basis.

Several other research analysts also recently weighed in on the stock. Wall Street Zen downgraded shares of Cummins from a “strong-buy” rating to a “buy” rating in a research report on Sunday, March 8th. Truist Financial boosted their price objective on Cummins from $815.00 to $901.00 and gave the stock a “buy” rating in a research note on Thursday. Evercore restated an “outperform” rating and issued a $845.00 target price on shares of Cummins in a research report on Monday, May 11th. UBS Group reiterated a “buy” rating on shares of Cummins in a research report on Wednesday, June 17th. Finally, Robert W. Baird set a $700.00 price objective on Cummins in a report on Wednesday, May 6th. One analyst has rated the stock with a Strong Buy rating, eleven have issued a Buy rating and four have given a Hold rating to the stock. Based on data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average target price of $738.00.

Cummins Stock Performance

NYSE:CMI opened at $662.21 on Friday. The company has a debt-to-equity ratio of 0.50, a quick ratio of 1.11 and a current ratio of 1.71. The stock has a market capitalization of $91.38 billion, a PE ratio of 34.36, a P/E/G ratio of 1.67 and a beta of 1.22. Cummins has a fifty-two week low of $325.25 and a fifty-two week high of $737.76. The company has a fifty day moving average of $677.11 and a two-hundred day moving average of $603.19.

Cummins Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Thursday, June 4th. Shareholders of record on Friday, May 22nd were paid a $2.00 dividend. The ex-dividend date of this dividend was Friday, May 22nd. This represents a $8.00 dividend on an annualized basis and a dividend yield of 1.2%. Cummins’s dividend payout ratio (DPR) is 41.52%.

Insider Buying and Selling at Cummins

In other news, insider Brett Michael Merritt sold 701 shares of the business’s stock in a transaction dated Monday, May 11th. The shares were sold at an average price of $688.75, for a total transaction of $482,813.75. Following the transaction, the insider owned 10,404 shares of the company’s stock, valued at approximately $7,165,755. The trade was a 6.31% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, VP Donald G. Jackson sold 730 shares of the firm’s stock in a transaction that occurred on Thursday, May 14th. The stock was sold at an average price of $710.92, for a total transaction of $518,971.60. Following the sale, the vice president owned 8,316 shares of the company’s stock, valued at $5,912,010.72. This represents a 8.07% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders have sold 13,579 shares of company stock worth $9,377,684. Corporate insiders own 0.30% of the company’s stock.

Institutional Investors Weigh In On Cummins

Several institutional investors and hedge funds have recently modified their holdings of CMI. Vanguard Group Inc. grew its position in Cummins by 0.6% in the 4th quarter. Vanguard Group Inc. now owns 17,746,775 shares of the company’s stock valued at $9,058,841,000 after acquiring an additional 98,544 shares in the last quarter. State Street Corp boosted its stake in shares of Cummins by 0.8% in the fourth quarter. State Street Corp now owns 6,509,852 shares of the company’s stock valued at $3,322,954,000 after purchasing an additional 49,628 shares during the period. Geode Capital Management LLC grew its holdings in shares of Cummins by 1.0% in the fourth quarter. Geode Capital Management LLC now owns 3,584,466 shares of the company’s stock valued at $1,822,534,000 after purchasing an additional 35,286 shares in the last quarter. Fisher Asset Management LLC increased its stake in Cummins by 1.3% during the 4th quarter. Fisher Asset Management LLC now owns 3,410,723 shares of the company’s stock worth $1,741,004,000 after buying an additional 43,722 shares during the period. Finally, Northwestern Mutual Wealth Management Co. increased its stake in Cummins by 10,317.7% during the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 2,458,475 shares of the company’s stock worth $1,254,929,000 after buying an additional 2,434,876 shares during the period. Hedge funds and other institutional investors own 83.46% of the company’s stock.

Key Cummins News

Here are the key news stories impacting Cummins this week:

• Positive Sentiment: Zacks Research raised its FY2027 EPS estimate for Cummins to $33.76 from $32.40, signaling higher expected long-term earnings.
• Positive Sentiment: Zacks also increased its quarterly estimates for Q1 2027 to $6.88, Q2 2027 to $8.62, Q3 2027 to $9.00, and Q4 2027 to $9.26, reinforcing a stronger profit outlook.
• Positive Sentiment: Truist Financial raised its price target to $901 and maintained a buy rating, which may have encouraged buyers by pointing to substantial upside potential.
• Positive Sentiment: Cummins was added to Zacks’ #1 (Strong Buy) lists, including its “New Strong Buy Stocks” and “Best Income Stocks” screens, adding to the positive momentum.
• Neutral Sentiment: A Zacks article compared Cummins’ year-to-date performance with other auto-tires-trucks stocks, but it did not indicate any new company-specific fundamental change. Article: Is Cummins (CMI) Outperforming Other Auto-Tires-Trucks Stocks This Year?

About Cummins

Cummins Inc (NYSE: CMI) is a global power technology company that designs, manufactures, distributes and services a broad portfolio of diesel and natural gas engines, electrified powertrains, power generation systems and related components. Founded in 1919 and headquartered in Columbus, Indiana, Cummins has grown into one of the world’s leading suppliers of internal combustion engines and a provider of technologies that reduce emissions and improve fuel efficiency.

The company’s product lineup includes heavy-, medium- and light-duty engines for on-highway and off-highway applications, generator sets and power systems for commercial and industrial use, and key engine components such as turbochargers, fuel systems, air handling, filtration and aftertreatment solutions.