Cummins Inc. (NYSE:CMI) Given Consensus Recommendation of "Moderate Buy" by Brokerages

Key Points

• Cummins has a consensus analyst rating of “Moderate Buy”, with 11 buy ratings, 1 strong buy, and 5 hold ratings among 17 firms. The average 12-month price target is about $677.87.
• The company’s latest quarterly results beat expectations, reporting EPS of $6.15 versus the $5.63 estimate and revenue of $8.40 billion, slightly ahead of forecasts. Revenue rose 2.7% year over year.
• Cummins declared a $2.00 per share quarterly dividend, equal to $8.00 annually and a yield of about 1.2%. The company also highlighted positive momentum from recent analyst upgrades and increased long-term growth targets at its investor day.

Cummins Inc. (NYSE:CMI - Get Free Report) has received a consensus recommendation of "Moderate Buy" from the seventeen research firms that are currently covering the firm, Marketbeat reports. Five equities research analysts have rated the stock with a hold rating, eleven have issued a buy rating and one has issued a strong buy rating on the company. The average 12-month target price among brokerages that have issued ratings on the stock in the last year is $677.8667.

CMI has been the topic of several analyst reports. JPMorgan Chase & Co. increased their target price on Cummins from $600.00 to $725.00 and gave the stock a "neutral" rating in a research report on Wednesday, May 6th. Wolfe Research lowered Cummins from an "outperform" rating to a "peer perform" rating and set a $540.00 target price on the stock. in a research report on Monday, January 26th. Wall Street Zen lowered Cummins from a "strong-buy" rating to a "buy" rating in a research report on Sunday, March 8th. Raymond James Financial increased their target price on Cummins from $585.00 to $675.00 and gave the stock an "outperform" rating in a research report on Monday, February 9th. Finally, Barclays increased their target price on Cummins from $610.00 to $760.00 and gave the stock an "overweight" rating in a research report on Wednesday, May 6th.

Cummins Stock Performance

Shares of CMI opened at $640.41 on Friday. The business's fifty day moving average price is $612.02 and its 200 day moving average price is $562.53. Cummins has a 12-month low of $307.90 and a 12-month high of $718.08. The stock has a market capitalization of $88.37 billion, a PE ratio of 33.23, a price-to-earnings-growth ratio of 1.58 and a beta of 1.27. The company has a debt-to-equity ratio of 0.50, a current ratio of 1.71 and a quick ratio of 1.11.

Cummins (NYSE:CMI - Get Free Report) last announced its quarterly earnings data 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. Cummins had a return on equity of 25.25% and a net margin of 7.89%.The firm had revenue of $8.40 billion for the quarter, compared to analysts' expectations of $8.37 billion. During the same period last year, the business posted $5.96 earnings per share. The firm's revenue for the quarter was up 2.7% on a year-over-year basis. Equities research analysts forecast that Cummins will post 28.93 EPS for the current year.

Cummins Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, June 4th. Stockholders of record on Friday, May 22nd will be issued a dividend of $2.00 per share. This represents a $8.00 dividend on an annualized basis and a dividend yield of 1.2%. The ex-dividend date of this dividend is Friday, May 22nd. Cummins's dividend payout ratio (DPR) is 41.52%.

Insider Activity at Cummins

In other news, VP Amy Rochelle Davis sold 4,054 shares of the firm's stock in a transaction on Tuesday, March 3rd. The stock was sold at an average price of $561.34, for a total transaction of $2,275,672.36. Following the transaction, the vice president directly owned 15,807 shares of the company's stock, valued at approximately $8,873,101.38. This trade represents a 20.41% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, VP Donald G. Jackson sold 1,600 shares of the firm's stock in a transaction on Tuesday, February 24th. The shares were sold at an average price of $600.13, for a total value of $960,208.00. Following the transaction, the vice president directly owned 7,214 shares in the company, valued at $4,329,337.82. This trade represents a 18.15% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last three months, insiders sold 22,397 shares of company stock valued at $14,465,833. 0.30% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of the business. Vanguard Group Inc. grew its holdings in Cummins by 0.6% during the fourth quarter. Vanguard Group Inc. now owns 17,746,775 shares of the company's stock worth $9,058,841,000 after acquiring an additional 98,544 shares during the period. State Street Corp grew its holdings in Cummins by 0.8% during the fourth quarter. State Street Corp now owns 6,509,852 shares of the company's stock worth $3,322,954,000 after acquiring an additional 49,628 shares during the period. Geode Capital Management LLC grew its holdings in Cummins by 1.0% during the fourth quarter. Geode Capital Management LLC now owns 3,584,466 shares of the company's stock worth $1,822,534,000 after acquiring an additional 35,286 shares during the period. Fisher Asset Management LLC grew its holdings in Cummins by 1.3% during the fourth quarter. Fisher Asset Management LLC now owns 3,410,723 shares of the company's stock worth $1,741,004,000 after acquiring an additional 43,722 shares during the period. Finally, Northwestern Mutual Wealth Management Co. grew its holdings in Cummins by 10,317.7% during the fourth 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. 83.46% of the stock is owned by institutional investors and hedge funds.

More Cummins News

Here are the key news stories impacting Cummins this week:

• Positive Sentiment: Zacks Research raised multiple earnings forecasts for Cummins, including FY2026 to $29.28 per share, FY2027 to $31.73, and FY2028 to $35.32, while maintaining a Strong-Buy rating. Cummins stock page
• Positive Sentiment: The analyst also lifted near-term quarterly estimates across 2026 and 2027, suggesting expectations for sustained earnings momentum rather than a one-quarter boost. Cummins stock page
• Positive Sentiment: At its investor day, Cummins said it is raising its 2030 financial targets and announced large-engine capacity and product investments, signaling confidence in future growth and profitability. Business Wire article
• Positive Sentiment: Coverage of the investor event also highlighted how Cummins is positioning itself for opportunities tied to the AI boom, which may have helped sentiment around the stock. Barron’s article

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.

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