Zacks Research Estimates Cummins’ FY2027 Earnings (NYSE:CMI)

Cummins Inc. (NYSE:CMI) – Equities researchers at Zacks Research lowered their FY2027 earnings per share (EPS) estimates for Cummins in a research report 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 prior forecast of $33.76. Zacks Research currently 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.

CMI has been the subject of a number of other reports. Raymond James Financial raised their price objective on shares of Cummins from $675.00 to $745.00 and gave the stock an “outperform” rating in a research note on Tuesday, May 26th. Truist Financial upped their target price on Cummins from $815.00 to $901.00 and gave the company a “buy” rating in a research note on Thursday, July 2nd. Morgan Stanley increased their target price on Cummins from $675.00 to $752.00 and gave the company an “overweight” rating in a report on Wednesday, May 6th. Weiss Ratings downgraded Cummins from a “buy (b)” rating to a “buy (b-)” rating in a research report on Wednesday, May 6th. Finally, Wells Fargo & Company boosted their price target on Cummins from $794.00 to $874.00 and gave the stock an “overweight” rating in a report on Wednesday, June 17th. Eleven investment analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company. Based on data from MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus target price of $739.43.

Cummins Stock Performance

Shares of CMI opened at $666.12 on Thursday. Cummins has a 12-month low of $340.39 and a 12-month high of $737.76. The stock has a market cap of $91.92 billion, a P/E ratio of 34.57, a PEG ratio of 1.65 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. The company has a 50-day moving average of $678.35 and a two-hundred day moving average of $613.12.

Cummins (NYSE:CMI) last released its quarterly earnings data on Tuesday, May 5th. The company reported $6.15 EPS for the quarter, topping 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 business had revenue of $8.40 billion for the quarter, compared to analyst estimates of $8.37 billion. During the same period in the previous year, the firm earned $5.96 EPS. The business’s revenue for the quarter was up 2.7% compared to the same quarter last year.

Hedge Funds Weigh In On Cummins

Several hedge funds and other institutional investors have recently modified their holdings of the company. Valmark Advisers Inc. boosted its stake in shares of Cummins by 1.9% during the 1st quarter. Valmark Advisers Inc. now owns 877 shares of the company’s stock valued at $472,000 after buying an additional 16 shares during the last quarter. Guardian Partners Inc. increased its stake in shares of Cummins by 1.0% in the first quarter. Guardian Partners Inc. now owns 1,584 shares of the company’s stock worth $852,000 after buying an additional 16 shares during the last quarter. Nicolet Advisory Services LLC raised its holdings in Cummins by 1.6% in the fourth quarter. Nicolet Advisory Services LLC now owns 1,101 shares of the company’s stock valued at $619,000 after acquiring an additional 17 shares in the last quarter. Uhlmann Price Securities LLC boosted its stake in Cummins by 2.4% during the 1st quarter. Uhlmann Price Securities LLC now owns 717 shares of the company’s stock valued at $386,000 after acquiring an additional 17 shares during the last quarter. Finally, Frank Rimerman Advisors LLC grew its holdings in Cummins by 0.5% during the 4th quarter. Frank Rimerman Advisors LLC now owns 3,738 shares of the company’s stock worth $1,908,000 after acquiring an additional 18 shares in the last quarter. 83.46% of the stock is owned by institutional investors and hedge funds.

Insider Buying and Selling

In other Cummins news, CAO Nicole Lamb-Hale sold 2,408 shares of the business’s stock in a transaction on Friday, May 8th. The stock was sold at an average price of $685.34, for a total value of $1,650,298.72. Following the completion of the transaction, the chief accounting officer directly 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 sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, VP Marvin Boakye sold 3,481 shares of the stock in a transaction on Friday, May 8th. The stock was sold at an average price of $679.90, for a total value of $2,366,731.90. Following the transaction, the vice president directly owned 8,508 shares in the company, valued at approximately $5,784,589.20. This represents a 29.03% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 13,579 shares of company stock worth $9,377,684 in the last three months. 0.30% of the stock is currently owned by insiders.

Cummins Increases Dividend

The company 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 $2.20 dividend. This represents a $8.80 annualized dividend and a yield of 1.3%. The ex-dividend date of this dividend is Friday, August 21st. This is an increase from Cummins’s previous quarterly dividend of $2.00. Cummins’s dividend payout ratio is presently 41.52%.

Cummins News Summary

Here are the key news stories impacting Cummins this week:

• Positive Sentiment: Cummins was upgraded to Zacks Rank #2 (Buy), signaling improving earnings expectations and raising the odds that the stock could move higher if the company continues to deliver strong results. Article Title
• Positive Sentiment: Investors are also focused on Cummins’ 10% dividend hike, which supports the stock’s appeal as a cash-return story and may help sentiment around the shares. Article Title
• Positive Sentiment: Analysts say AI data center power demand could be an additional growth driver for Cummins, while raised 2030 targets reinforce the long-term earnings outlook. Article Title
• Neutral Sentiment: Several reports highlighted Cummins’ history of earnings beats and the possibility of another upside surprise in the next quarterly report, which could be a supportive near-term catalyst if management delivers again. Article Title
• Neutral Sentiment: One note said Cummins was downgraded from strong-buy to hold by Zacks Research, which is a mild headwind but does not change the broader positive tone around the name. Article Title
• Positive Sentiment: Cummins’ recently announced quarterly dividend increase and commentary that the stock may be undervalued are also helping support investor confidence in the shares. Article Title

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.