Equities Analysts Offer Predictions for Cummins Q3 Earnings

Key Points

• Analysts at Zacks Research have revised Cummins Inc.'s Q3 2025 earnings estimate down from $4.73 to $4.52 per share, impacting the overall sentiment around the company's financial outlook.
• Cummins recently announced a quarterly dividend increase to $2.00 per share, reflecting a positive change from the previous $1.82 dividend, with a current annualized yield of 2.0%.
• Institutional investors own 83.46% of Cummins stock, indicating strong support from large stakeholders in the company despite mixed ratings from analysts.

Cummins Inc. (NYSE:CMI - Free Report) - Stock analysts at Zacks Research decreased their Q3 2025 earnings estimates for Cummins in a research report issued to clients and investors on Tuesday, August 19th. Zacks Research analyst Team now anticipates that the company will earn $4.52 per share for the quarter, down from their prior estimate of $4.73. The consensus estimate for Cummins' current full-year earnings is $22.54 per share. Zacks Research also issued estimates for Cummins' Q4 2025 earnings at $4.57 EPS, Q1 2026 earnings at $6.03 EPS, Q3 2026 earnings at $5.97 EPS, Q4 2026 earnings at $6.01 EPS, FY2026 earnings at $24.26 EPS and Q1 2027 earnings at $6.09 EPS.

CMI has been the topic of a number of other reports. Truist Financial boosted their price objective on Cummins from $342.00 to $380.00 and gave the company a "hold" rating in a research report on Thursday, August 7th. Wells Fargo & Company raised shares of Cummins to an "overweight" rating in a report on Monday, August 11th. Wolfe Research upgraded shares of Cummins from a "hold" rating to an "outperform" rating in a research note on Monday, August 11th. Citigroup raised their price objective on shares of Cummins from $380.00 to $425.00 and gave the stock a "buy" rating in a report on Wednesday, August 6th. Finally, Evercore ISI reissued an "outperform" rating on shares of Cummins in a research note on Tuesday. Seven investment analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat, Cummins currently has an average rating of "Hold" and a consensus price target of $370.83.

Cummins Trading Down 1.5%

Cummins stock opened at $396.1750 on Thursday. The business has a 50 day moving average price of $351.98 and a two-hundred day moving average price of $333.95. The company has a quick ratio of 1.03, a current ratio of 1.64 and a debt-to-equity ratio of 0.53. Cummins has a 12 month low of $260.02 and a 12 month high of $408.38. The stock has a market cap of $54.59 billion, a price-to-earnings ratio of 18.63, a price-to-earnings-growth ratio of 1.96 and a beta of 1.02.

Cummins (NYSE:CMI - Get Free Report) last released its earnings results on Tuesday, August 5th. The company reported $6.43 earnings per share for the quarter, topping analysts' consensus estimates of $5.21 by $1.22. Cummins had a return on equity of 26.96% and a net margin of 8.72%.The business had revenue of $8.64 billion for the quarter, compared to the consensus estimate of $8.45 billion. During the same period last year, the business earned $5.26 earnings per share. The firm's revenue for the quarter was down 1.7% compared to the same quarter last year.

Institutional Investors Weigh In On Cummins

Hedge funds and other institutional investors have recently bought and sold shares of the business. Olde Wealth Management LLC acquired a new position in Cummins during the 1st quarter worth about $30,000. Accredited Wealth Management LLC acquired a new stake in Cummins in the 1st quarter valued at about $31,000. Osterweis Capital Management Inc. bought a new position in shares of Cummins in the second quarter worth about $31,000. Capital A Wealth Management LLC bought a new position in shares of Cummins in the fourth quarter worth about $32,000. Finally, Opal Wealth Advisors LLC acquired a new position in shares of Cummins during the first quarter worth approximately $37,000. 83.46% of the stock is owned by institutional investors and hedge funds.

Insider Buying and Selling at Cummins

In other Cummins news, VP Luther E. Peters sold 4,850 shares of the company's stock in a transaction dated Friday, August 8th. The shares were sold at an average price of $389.19, for a total transaction of $1,887,571.50. Following the sale, the vice president directly owned 7,693 shares of the company's stock, valued at approximately $2,994,038.67. This represents a 38.67% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, VP Amy Rochelle Davis sold 5,002 shares of Cummins stock in a transaction that occurred on Thursday, August 14th. The shares were sold at an average price of $402.88, for a total transaction of $2,015,205.76. Following the completion of the transaction, the vice president owned 20,738 shares of the company's stock, valued at $8,354,925.44. This trade represents a 19.43% decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 24,179 shares of company stock worth $9,636,871 over the last ninety days. Company insiders own 0.41% of the company's stock.

Cummins Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, September 4th. Stockholders of record on Friday, August 22nd will be issued a $2.00 dividend. This represents a $8.00 annualized dividend and a dividend yield of 2.0%. The ex-dividend date of this dividend is Friday, August 22nd. This is a positive change from Cummins's previous quarterly dividend of $1.82. Cummins's payout ratio is currently 34.23%.

Cummins Company Profile

Cummins Inc designs, manufactures, distributes, and services diesel and natural gas engines, electric and hybrid powertrains, and related components worldwide. It operates through five segments: Engine, Distribution, Components, Power Systems, and Accelera. The company offers diesel and natural gas-powered engines under the Cummins and other customer brands for the heavy and medium-duty truck, bus, recreational vehicle, light-duty automotive, construction, mining, marine, rail, oil and gas, defense, and agricultural markets; and offers parts and services, as well as remanufactured parts and engines.

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