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

Cummins Inc. (NYSE:CMI) – Stock analysts at Zacks Research lowered their FY2027 earnings estimates for Cummins in a research report issued on Tuesday, July 14th. Zacks Research analyst Team now forecasts that the company will post earnings of $33.53 per share for the year, down from their prior 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 issued its quarterly earnings data on Tuesday, May 5th. The company reported $6.15 EPS for the quarter, topping analysts’ consensus estimates of $5.63 by $0.52. Cummins had a return on equity of 25.25% and a net margin of 7.89%.The firm 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 business earned $5.96 EPS. The firm’s revenue was up 2.7% on a year-over-year basis.

A number of other analysts have also recently weighed in on the stock. UBS Group reaffirmed a “buy” rating on shares of Cummins in a report on Wednesday, June 17th. Sanford C. Bernstein reissued a “market perform” rating on shares of Cummins in a research note on Friday, May 22nd. Wells Fargo & Company upped their target price on shares of Cummins from $794.00 to $874.00 and gave the stock an “overweight” rating in a research report on Wednesday, June 17th. Raymond James Financial raised their price target on shares of Cummins from $675.00 to $745.00 and gave the company an “outperform” rating in a research note on Tuesday, May 26th. Finally, Morgan Stanley boosted their price objective on Cummins from $675.00 to $752.00 and gave the stock an “overweight” rating in a research report on Wednesday, May 6th. Eleven research analysts have rated the stock with a Buy rating and four have given a Hold rating to the stock. According to data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $739.43.

Cummins Stock Performance

CMI stock opened at $666.12 on Thursday. Cummins has a 1 year low of $340.39 and a 1 year high of $737.76. The stock has a market capitalization of $91.92 billion, a price-to-earnings ratio of 34.57, a PEG ratio of 1.65 and a beta of 1.22. 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’s fifty day moving average is $678.35 and its two-hundred day moving average is $613.12.

Cummins Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, September 3rd. Investors of record on Friday, August 21st will be given a $2.20 dividend. This is a positive change from Cummins’s previous quarterly dividend of $2.00. The ex-dividend date is Friday, August 21st. This represents a $8.80 dividend on an annualized basis and a dividend yield of 1.3%. Cummins’s dividend payout ratio is 41.52%.

Insiders Place Their Bets

In related news, VP Donald G. Jackson sold 730 shares of Cummins stock in a transaction dated Thursday, May 14th. The stock was sold at an average price of $710.92, for a total value of $518,971.60. Following the transaction, the vice president owned 8,316 shares of the company’s stock, valued at approximately $5,912,010.72. This trade represents a 8.07% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, VP Marvin Boakye sold 3,481 shares of the business’s stock in a transaction dated 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 sale, the vice president owned 8,508 shares in the company, valued at approximately $5,784,589.20. The trade was a 29.03% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 13,579 shares of company stock worth $9,377,684 over the last three months. Company insiders own 0.30% of the company’s stock.

Institutional Investors Weigh In On Cummins

Several hedge funds have recently made changes to their positions in the company. Brighton Jones LLC boosted its position in shares of Cummins by 4.1% in the fourth quarter. Brighton Jones LLC now owns 2,112 shares of the company’s stock worth $736,000 after buying an additional 83 shares during the period. Intech Investment Management LLC raised its position in Cummins by 40.8% during the first quarter. Intech Investment Management LLC now owns 3,956 shares of the company’s stock valued at $1,240,000 after buying an additional 1,146 shares during the period. Treasurer of the State of North Carolina lifted its stake in Cummins by 2.8% in the 2nd quarter. Treasurer of the State of North Carolina now owns 64,289 shares of the company’s stock worth $21,055,000 after acquiring an additional 1,759 shares in the last quarter. ICW Investment Advisors LLC purchased a new stake in Cummins in the 2nd quarter worth about $225,000. Finally, Osterweis Capital Management Inc. acquired a new stake in Cummins during the 2nd quarter worth about $31,000. Hedge funds and other institutional investors own 83.46% of the company’s stock.

Key Headlines Impacting Cummins

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.