Analysts Issue Forecasts for Cummins' Q1 Earnings (NYSE:CMI)

Key Points

• Zacks Research raised its Q1 2027 EPS estimate for Cummins to $6.88 from $6.73 and kept a Strong-Buy rating, signaling a more optimistic near-term outlook.
• Other analysts were also bullish, with Truist lifting its price target to $901 and several firms maintaining Buy or Outperform ratings; the Street’s average target is $738.
• Cummins recently beat earnings expectations, reporting Q1 EPS of $6.15 versus $5.63 expected, while revenue came in at $8.40 billion and rose 2.7% year over year.

Cummins Inc. (NYSE:CMI - Free Report) - Analysts at Zacks Research upped their Q1 2027 EPS estimates for Cummins in a research note issued on Thursday, July 2nd. Zacks Research analyst Team now expects that the company will post earnings of $6.88 per share for the quarter, up from their previous estimate of $6.73. Zacks Research has a "Strong-Buy" rating on the stock. The consensus estimate for Cummins' current full-year earnings is $29.31 per share. Zacks Research also issued estimates for Cummins' Q2 2027 earnings at $8.62 EPS, Q3 2027 earnings at $9.00 EPS, Q4 2027 earnings at $9.26 EPS and FY2027 earnings at $33.76 EPS.

Cummins (NYSE:CMI - Get Free Report) last issued its quarterly earnings results on Tuesday, May 5th. The company reported $6.15 earnings per share 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 analysts' expectations of $8.37 billion. During the same quarter last year, the company posted $5.96 EPS. The company's revenue was up 2.7% compared to the same quarter last year.

Several other research firms have also issued reports on CMI. Robert W. Baird set a $700.00 price target on Cummins in a report on Wednesday, May 6th. JPMorgan Chase & Co. lifted their price objective on Cummins from $600.00 to $725.00 and gave the company a "neutral" rating in a research report on Wednesday, May 6th. Raymond James Financial raised their target price 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. Sanford C. Bernstein reissued a "market perform" rating on shares of Cummins in a research note on Friday, May 22nd. Finally, Truist Financial lifted their target price on shares of Cummins from $815.00 to $901.00 and gave the company a "buy" rating in a research note on Thursday. One research analyst has rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and four have assigned a Hold rating to the company's stock. Based on data from MarketBeat, the company has an average rating of "Moderate Buy" and an average target price of $738.00.

Cummins Price Performance

Shares of Cummins stock opened at $662.21 on Friday. Cummins has a one year low of $325.25 and a one year high of $737.76. The stock's fifty day moving average is $677.11 and its 200 day moving average is $603.19. The stock has a market cap of $91.38 billion, a P/E ratio of 34.36, a P/E/G ratio of 1.67 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.

Institutional Investors Weigh In On Cummins

A number of hedge funds and other institutional investors have recently bought and sold shares of CMI. Northwestern Mutual Wealth Management Co. lifted its position in Cummins by 10,317.7% during the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 2,458,475 shares of the company's stock worth $1,254,929,000 after acquiring an additional 2,434,876 shares during the period. Norges Bank purchased a new position in Cummins during the 4th quarter worth approximately $863,441,000. Boston Partners acquired a new stake in Cummins during the 3rd quarter valued at approximately $473,471,000. London Co. of Virginia purchased a new stake in shares of Cummins in the 3rd quarter valued at $231,732,000. Finally, SG Americas Securities LLC increased its stake in shares of Cummins by 257.9% in the first 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 period. Hedge funds and other institutional investors own 83.46% of the company's stock.

Insiders Place Their Bets

In other Cummins news, EVP Bonnie J. Fetch sold 652 shares of Cummins stock in a transaction dated Monday, May 11th. The stock was sold at an average price of $700.19, for a total value of $456,523.88. Following the transaction, 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 ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, VP Donald G. Jackson sold 730 shares of the stock in a transaction dated Thursday, May 14th. The shares were sold at an average price of $710.92, for a total transaction of $518,971.60. Following the sale, the vice president directly owned 8,316 shares of the company's stock, valued at approximately $5,912,010.72. The trade was a 8.07% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders sold 13,579 shares of company stock worth $9,377,684. 0.30% of the stock is owned by company insiders.

Cummins Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Thursday, June 4th. Investors of record on Friday, May 22nd were issued a $2.00 dividend. The ex-dividend date was Friday, May 22nd. This represents a $8.00 dividend on an annualized basis and a dividend yield of 1.2%. Cummins's payout ratio is presently 41.52%.

More Cummins News

Here are the key news stories impacting Cummins this week:

• Positive Sentiment: Zacks Research raised its FY2027 EPS estimate for Cummins to $33.76 from $32.40, signaling higher expected long-term earnings.
• Positive Sentiment: Zacks also increased its quarterly estimates for Q1 2027 to $6.88, Q2 2027 to $8.62, Q3 2027 to $9.00, and Q4 2027 to $9.26, reinforcing a stronger profit outlook.
• Positive Sentiment: Truist Financial raised its price target to $901 and maintained a buy rating, which may have encouraged buyers by pointing to substantial upside potential.
• Positive Sentiment: Cummins was added to Zacks’ #1 (Strong Buy) lists, including its “New Strong Buy Stocks” and “Best Income Stocks” screens, adding to the positive momentum.
• Neutral Sentiment: A Zacks article compared Cummins’ year-to-date performance with other auto-tires-trucks stocks, but it did not indicate any new company-specific fundamental change. Article: Is Cummins (CMI) Outperforming Other Auto-Tires-Trucks Stocks This Year?

Cummins Company Profile

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.

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