Cummins (NYSE:CMI) Hits New 12-Month Low – Here’s Why

Cummins Inc. (NYSE:CMI)’s share price hit a new 52-week low on Thursday. The stock traded as low as $447.00 and last traded at $448.2660, with a volume of 88,124 shares traded. The stock had previously closed at $471.84.

Cummins News Roundup

Here are the key news stories impacting Cummins this week:

• Positive Sentiment: Third-quarter EPS of $8.25 edged past the $8.20 consensus, and revenue rose 13.5% year over year to $9.44 billion. The company also pointed to strong data-center demand, recovering shipments and capacity expansion as growth supports. Cummins Q3 Earnings Call Highlights Power Demand and Truck Weakness
• Neutral Sentiment: Citigroup, Truist Financial and Wells Fargo cut their price targets, but maintained buy or overweight ratings. Their revised targets still imply upside from the quoted share price, tempering—but not erasing—the signal from the reductions. Citigroup recommendations Truist Financial recommendations Wells Fargo recommendations
• Negative Sentiment: Cummins lowered its FY2026 revenue guidance to $37.0 billion, below the roughly $37.7 billion consensus, citing pickup-truck weakness. Third-quarter revenue also fell short of analyst expectations, raising concern that softer vehicle demand could offset strength in data-center-related business. Cummins Q3 profit more than doubles; cuts FY26 revenue outlook

Wall Street Analysts Forecast Growth

CMI has been the subject of several recent research reports. Evercore cut their price target on Cummins from $845.00 to $782.00 and set an “outperform” rating for the company in a report on Tuesday, August 11th. UBS Group reduced their price objective on Cummins from $835.00 to $741.00 and set a “buy” rating for the company in a research report on Wednesday, September 30th. Weiss Ratings lowered shares of Cummins from a “buy (b)” rating to a “buy (b-)” rating in a research note on Monday, August 31st. Barclays dropped their price target on Cummins from $760.00 to $675.00 and set an “overweight” rating on the stock in a research report on Monday, October 19th. Finally, DA Davidson upped their price objective on Cummins from $605.00 to $750.00 and gave the stock a “buy” rating in a research report on Thursday, August 6th. Thirteen investment analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company. According to data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $674.53.

Cummins Trading Up 0.4%

The firm has a 50-day moving average of $526.45 and a 200 day moving average of $599.60. The stock has a market capitalization of $62.02 billion, a price-to-earnings ratio of 20.44, a PEG ratio of 1.32 and a beta of 1.26. The company has a current ratio of 1.73, a quick ratio of 1.13 and a debt-to-equity ratio of 0.48.

Cummins (NYSE:CMI) last announced its quarterly earnings results on Thursday, November 5th. The company reported $8.25 EPS for the quarter, beating analysts’ consensus estimates of $8.20 by $0.05. Cummins had a net margin of 7.82% and a return on equity of 25.29%. The firm had revenue of $9.44 billion during the quarter, compared to analysts’ expectations of $9.89 billion. During the same quarter last year, the company posted $5.59 earnings per share. The company’s revenue for the quarter was up 13.5% compared to the same quarter last year. As a group, equities analysts predict that Cummins Inc. will post 29.98 EPS for the current fiscal year.

Cummins Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, December 3rd. Shareholders of record on Friday, November 20th will be paid a dividend of $2.20 per share. The ex-dividend date of this dividend is Friday, November 20th. This represents a $8.80 annualized dividend and a yield of 2.0%. Cummins’s dividend payout ratio (DPR) is 44.97%.

Insider Activity

In other news, VP Earl Newsome sold 698 shares of the stock in a transaction that occurred on Monday, August 24th. The shares were sold at an average price of $572.22, for a total value of $399,409.56. Following the sale, the vice president directly owned 4,479 shares in the company, valued at $2,562,973.38. This represents a 13.48% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Insiders own 0.30% of the company’s stock.

Institutional Trading of Cummins

Institutional investors and hedge funds have recently modified their holdings of the company. Ibex Wealth Advisors increased its position in shares of Cummins by 95.0% during the 3rd quarter. Ibex Wealth Advisors now owns 774 shares of the company’s stock worth $400,000 after purchasing an additional 377 shares during the last quarter. Vista Capital Partners Inc. purchased a new stake in shares of Cummins during the third quarter valued at approximately $823,000. Aberdeen Group plc boosted its holdings in Cummins by 29.6% in the 3rd quarter. Aberdeen Group plc now owns 231,286 shares of the company’s stock worth $119,475,000 after buying an additional 52,884 shares during the period. Valmark Advisers Inc. boosted its position in shares of Cummins by 16.1% during the third quarter. Valmark Advisers Inc. now owns 1,015 shares of the company’s stock valued at $524,000 after buying an additional 141 shares during the period. Finally, Allworth Financial LP boosted its position in shares of Cummins by 1.9% in the 3rd quarter. Allworth Financial LP now owns 31,544 shares of the company’s stock worth $16,295,000 after purchasing an additional 575 shares in the last quarter. 83.46% of the stock is currently owned by institutional investors.

About Cummins

Cummins Inc is a global power technology company founded in 1919 and headquartered in Columbus, Indiana. It designs, manufactures, distributes and services products used in commercial vehicles, industrial equipment, power generation and other applications.

The company’s offerings include diesel and natural gas engines, power generation systems, and components such as filtration, turbochargers and emissions-control systems. Through its Accelera business, Cummins also develops technologies including batteries, fuel cells and electrolyzers for lower-emission power and transportation.

Cummins serves customers in markets around the world through manufacturing operations, distribution networks and service locations.