FY2027 EPS Estimates for Cummins Decreased by Zacks Research

Cummins Inc. (NYSE:CMI) – Equities research analysts at Zacks Research cut their FY2027 earnings per share estimates for Cummins in a research note issued on Tuesday, July 14th. Zacks Research analyst Team now anticipates that the company will post earnings per share of $33.53 for the year, down from their previous forecast of $33.76. Zacks Research has a “Hold” rating on the stock. The consensus estimate for Cummins’ current full-year earnings is $29.35 per share. Zacks Research also issued estimates for Cummins’ Q4 2027 earnings at $9.03 EPS, Q1 2028 earnings at $8.73 EPS, Q2 2028 earnings at $9.68 EPS and FY2028 earnings at $39.29 EPS.

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

Several other brokerages also recently commented on CMI. UBS Group reiterated a “buy” rating on shares of Cummins in a report on Wednesday, June 17th. Weiss Ratings cut shares of Cummins from a “buy (b)” rating to a “buy (b-)” rating in a research note on Wednesday, May 6th. Argus boosted their target price on shares of Cummins from $696.00 to $770.00 and gave the stock a “buy” rating in a research report on Monday, June 1st. Robert W. Baird set a $700.00 price target on shares of Cummins in a report on Wednesday, May 6th. Finally, Morgan Stanley raised their price target on Cummins from $675.00 to $752.00 and gave the company an “overweight” rating in a research report on Wednesday, May 6th. Eleven analysts have rated the stock with a Buy rating and four have given a Hold rating to the company’s stock. Based on data from MarketBeat.com, Cummins currently has a consensus rating of “Moderate Buy” and an average price target of $739.43.

Cummins Stock Down 2.8%

Shares of CMI stock opened at $647.26 on Thursday. The stock’s 50 day simple moving average is $677.66 and its 200 day simple moving average is $614.02. Cummins has a twelve month low of $344.02 and a twelve month high of $737.76. 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 company has a market capitalization of $89.32 billion, a price-to-earnings ratio of 33.59, a PEG ratio of 1.63 and a beta of 1.22.

Hedge Funds Weigh In On Cummins

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Thompson Investment Management Inc. bought a new stake in shares of Cummins during the fourth quarter valued at approximately $26,000. Activest Wealth Management lifted its position in Cummins by 537.5% in the fourth quarter. Activest Wealth Management now owns 51 shares of the company’s stock worth $26,000 after purchasing an additional 43 shares during the period. Cedar Mountain Advisors LLC lifted its position in Cummins by 1,500.0% in the first quarter. Cedar Mountain Advisors LLC now owns 48 shares of the company’s stock worth $26,000 after purchasing an additional 45 shares during the period. Wellington Shields Capital Management LLC acquired a new stake in Cummins during the fourth quarter worth $27,000. Finally, Key Financial Inc boosted its stake in Cummins by 62.5% during the first quarter. Key Financial Inc now owns 52 shares of the company’s stock worth $28,000 after buying an additional 20 shares in the last quarter. 83.46% of the stock is currently owned by institutional investors.

Insider Activity

In other news, CAO Nicole Lamb-Hale sold 2,408 shares of the business’s stock in a transaction dated Friday, May 8th. The shares were sold at an average price of $685.34, for a total transaction of $1,650,298.72. Following the transaction, the chief accounting officer owned 14,084 shares in the company, valued at approximately $9,652,328.56. The trade was a 14.60% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, VP Jennifer Mary Bush sold 5,000 shares of the company’s stock in a transaction dated Tuesday, May 12th. The shares were sold at an average price of $696.21, for a total transaction of $3,481,050.00. Following the transaction, the vice president directly owned 11,986 shares of the company’s stock, valued at $8,344,773.06. This represents a 29.44% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last quarter, insiders sold 13,579 shares of company stock worth $9,377,684. Corporate insiders own 0.30% of the company’s stock.

Cummins Increases Dividend

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

Key Stories Impacting Cummins

Here are the key news stories impacting Cummins this week:

• Positive Sentiment: Cummins was upgraded to Buy by Zacks, reflecting growing optimism about earnings prospects and the potential for upside if the company keeps beating estimates.
• Positive Sentiment: Another Zacks note said Cummins has an impressive earnings surprise history and the right setup to potentially beat its next quarterly estimate, which could support sentiment ahead of results. Article Title
• Positive Sentiment: Cummins’ recent 10% dividend hike and comments about AI data center power demand have reinforced the stock’s long-term income and growth appeal. Article Title
• Positive Sentiment: Analysts at Citi were also reported as positive on Cummins, adding to the broader bullish backdrop. Article Title
• Neutral Sentiment: Zacks highlighted Cummins as a stock to watch using its Earnings ESP screen, which is generally a model-driven preview rather than a direct business update. Article Title
• Neutral Sentiment: A dividend-focused article also mentioned Cummins among quality stocks with recent payout hikes, reinforcing its income profile but not changing fundamentals on its own. Article Title
• Negative Sentiment: Zacks Research cut EPS estimates for Q4 2027, Q1 2028, Q2 2028, FY2027 and FY2028, which can pressure the stock by signaling softer expected profitability ahead.
• Negative Sentiment: Zacks Research also downgraded Cummins from Strong Buy to Hold, a change that likely contributed to the recent weakness in the shares.

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.