Zacks Research Brokers Boost Earnings Estimates for Cummins

Cummins Inc. (NYSE:CMI) – Investment analysts at Zacks Research boosted their Q3 2027 EPS estimates for Cummins in a report issued on Thursday, July 16th. Zacks Research analyst Team now expects that the company will earn $9.02 per share for the quarter, up from their prior forecast of $9.00. Zacks Research has a “Hold” rating on the stock. The consensus estimate for Cummins’ current full-year earnings is $29.35 per share.

Several other research analysts also recently commented on CMI. Argus boosted their price objective on shares of Cummins from $696.00 to $770.00 and gave the company a “buy” rating in a research report on Monday, June 1st. UBS Group reiterated a “buy” rating on shares of Cummins in a research note on Wednesday, June 17th. Truist Financial boosted their price target on Cummins from $815.00 to $901.00 and gave the stock a “buy” rating in a report on Thursday, July 2nd. Evercore restated an “outperform” rating and set a $845.00 price objective on shares of Cummins in a research report on Monday, May 11th. Finally, Robert W. Baird set a $700.00 price objective on Cummins in a research note on Wednesday, May 6th. Eleven equities research analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company’s stock. According to data from MarketBeat, the company has an average rating of “Moderate Buy” and an average price target of $739.43.

Cummins Stock Performance

NYSE CMI opened at $647.26 on Friday. The firm’s 50 day simple moving average is $677.66 and its 200 day simple moving average is $614.02. The firm has a market capitalization of $89.32 billion, a price-to-earnings ratio of 33.59, a P/E/G ratio of 1.63 and a beta of 1.22. The company has a current ratio of 1.71, a quick ratio of 1.11 and a debt-to-equity ratio of 0.50. Cummins has a 1 year low of $344.02 and a 1 year high of $737.76.

Cummins (NYSE:CMI) last issued its earnings results on Tuesday, May 5th. The company reported $6.15 EPS for the quarter, beating the consensus estimate of $5.63 by $0.52. Cummins had a net margin of 7.89% and a return on equity of 25.25%. The company had revenue of $8.40 billion during the quarter, compared to analysts’ expectations of $8.37 billion. During the same period in the previous year, the company earned $5.96 EPS. The business’s revenue for the quarter was up 2.7% compared to the same quarter last year.

Institutional Trading of Cummins

A number of hedge funds have recently made changes to their positions in the company. Northwestern Mutual Wealth Management Co. increased its stake in shares of Cummins by 10,317.7% in the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 2,458,475 shares of the company’s stock valued at $1,254,929,000 after buying an additional 2,434,876 shares during the period. Norges Bank bought a new position in Cummins in the 4th quarter valued at approximately $863,441,000. Boston Partners acquired a new stake in Cummins during the 3rd quarter worth approximately $473,471,000. SG Americas Securities LLC grew its holdings in Cummins by 257.9% during the 1st quarter. SG Americas Securities LLC now owns 736,670 shares of the company’s stock worth $396,343,000 after acquiring an additional 530,812 shares during the last quarter. Finally, First Trust Advisors LP grew its holdings in Cummins by 245.1% during the 4th quarter. First Trust Advisors LP now owns 542,796 shares of the company’s stock worth $277,071,000 after acquiring an additional 385,525 shares during the last quarter. 83.46% of the stock is owned by institutional investors and hedge funds.

Insider Activity

In related news, EVP Bonnie J. Fetch sold 652 shares of the business’s stock in a transaction on Monday, May 11th. The stock was sold at an average price of $700.19, for a total transaction of $456,523.88. Following the sale, the executive vice president owned 11,679 shares in the company, valued at $8,177,519.01. The trade was a 5.29% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, insider Brett Michael Merritt sold 701 shares of the company’s stock in a transaction dated Monday, May 11th. The stock was sold at an average price of $688.75, for a total value of $482,813.75. Following the completion of the transaction, the insider directly 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 disclosure for this sale is available in the SEC filing. In the last quarter, insiders have sold 13,579 shares of company stock valued at $9,377,684. 0.30% of the stock is currently owned by insiders.

Cummins Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, September 3rd. Shareholders of record on Friday, August 21st will be paid a dividend of $2.20 per share. The ex-dividend date of this dividend is Friday, August 21st. This is a boost from Cummins’s previous quarterly dividend of $2.00. This represents a $8.80 dividend on an annualized basis and a dividend yield of 1.4%. Cummins’s payout ratio is presently 41.52%.

Cummins News Summary

Here are the key news stories impacting Cummins this week:

• Positive Sentiment: Zacks Research raised its Q3 2027 EPS estimate for Cummins to $9.02 from $9.00, signaling slightly better earnings expectations.
• Positive Sentiment: Earlier this week, Zacks Research upgraded Cummins to Buy and noted the company’s strong earnings surprise history, reinforcing optimism around the next quarterly report. Zacks Buy upgrade article
• Positive Sentiment: Another Zacks piece highlighted Cummins’ 10% dividend hike and rising AI data center power demand, both of which support the investment case. Dividend hike and AI demand article
• Neutral Sentiment: Zacks Research made only modest trims to some longer-dated earnings forecasts, including FY2027, Q1 2028, Q2 2028 and FY2028, while keeping a Hold rating overall.
• Neutral Sentiment: Recent articles also pointed to Cummins’ upcoming earnings report and a “fresh market test,” suggesting investors are waiting for the company to prove that demand and margins can hold up. Fresh market test article

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.