FY2025 EPS Estimates for Cummins Lifted by Zacks Research

Key Points

• Zacks Research has increased their FY2025 earnings per share (EPS) estimate for Cummins Inc. from $19.98 to $21.48, while the consensus estimate for the company's full-year earnings is $22.54 per share.
• Cummins recently declared a quarterly dividend of $2.00, up from the previous $1.82, with a dividend yield of 2.0% and a payout ratio of 37.61%.
• The company reported strong quarterly earnings with $6.43 EPS, exceeding analysts' estimates of $5.21, and had revenues of $8.64 billion, surpassing expected revenues of $8.45 billion.

Cummins Inc. (NYSE:CMI - Free Report) - Stock analysts at Zacks Research raised their FY2025 earnings per share estimates for Cummins in a report released on Tuesday, August 19th. Zacks Research analyst Team now forecasts that the company will post earnings per share of $21.48 for the year, up from their previous forecast of $19.98. The consensus estimate for Cummins' current full-year earnings is $22.54 per share. Zacks Research also issued estimates for Cummins' Q2 2026 earnings at $6.26 EPS, Q2 2027 earnings at $6.80 EPS and FY2027 earnings at $25.91 EPS.

CMI has been the topic of a number of other reports. JPMorgan Chase & Co. lifted their price target on Cummins from $308.00 to $320.00 and gave the company a "neutral" rating in a research note on Tuesday, May 6th. Truist Financial lifted their price target on Cummins from $342.00 to $380.00 and gave the company a "hold" rating in a research note on Thursday, August 7th. The Goldman Sachs Group raised Cummins from a "neutral" rating to a "buy" rating and lifted their price objective for the stock from $410.00 to $431.00 in a research note on Tuesday, May 27th. Evercore ISI reaffirmed an "outperform" rating on shares of Cummins in a research note on Tuesday, August 19th. Finally, Wolfe Research raised Cummins from a "hold" rating to an "outperform" rating in a research note on Monday, August 11th. Seven investment analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat, the stock has an average rating of "Hold" and a consensus price target of $370.83.

Cummins Trading Up 2.0%

Shares of CMI stock traded up $7.8750 during mid-day trading on Friday, reaching $402.0750. 775,198 shares of the stock traded hands, compared to its average volume of 939,606. The stock's fifty day simple moving average is $355.04 and its two-hundred day simple moving average is $334.04. Cummins has a 1-year low of $260.02 and a 1-year high of $408.38. The company has a market cap of $55.40 billion, a price-to-earnings ratio of 18.90, a price-to-earnings-growth ratio of 1.94 and a beta of 1.02. 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 (NYSE:CMI - Get Free Report) last released its quarterly earnings data on Tuesday, August 5th. The company reported $6.43 earnings per share for the quarter, beating the consensus estimate of $5.21 by $1.22. The business had revenue of $8.64 billion for the quarter, compared to analyst estimates of $8.45 billion. Cummins had a return on equity of 26.96% and a net margin of 8.72%.Cummins's revenue was down 1.7% compared to the same quarter last year. During the same period last year, the firm posted $5.26 earnings per share.

Institutional Investors Weigh In On Cummins

A number of hedge funds have recently added to or reduced their stakes in the business. Vanguard Group Inc. increased its holdings in Cummins by 2.0% in the second quarter. Vanguard Group Inc. now owns 17,628,149 shares of the company's stock worth $5,773,219,000 after purchasing an additional 344,680 shares in the last quarter. State Street Corp increased its holdings in shares of Cummins by 1.4% during the second quarter. State Street Corp now owns 6,539,191 shares of the company's stock valued at $2,141,585,000 after acquiring an additional 92,073 shares in the last quarter. Geode Capital Management LLC increased its holdings in shares of Cummins by 1.3% during the second quarter. Geode Capital Management LLC now owns 3,499,240 shares of the company's stock valued at $1,141,138,000 after acquiring an additional 43,720 shares in the last quarter. Fisher Asset Management LLC increased its holdings in shares of Cummins by 4.5% during the second quarter. Fisher Asset Management LLC now owns 3,275,045 shares of the company's stock valued at $1,072,578,000 after acquiring an additional 142,058 shares in the last quarter. Finally, Northern Trust Corp grew its position in Cummins by 1.2% in the 1st quarter. Northern Trust Corp now owns 1,905,214 shares of the company's stock valued at $597,170,000 after purchasing an additional 22,202 shares during the period. 83.46% of the stock is currently owned by institutional investors.

Insiders Place Their Bets

In other Cummins news, CFO Mark Andrew Smith sold 6,500 shares of Cummins stock in a transaction that occurred on Wednesday, August 13th. The stock was sold at an average price of $405.00, for a total value of $2,632,500.00. Following the completion of the sale, the chief financial officer directly owned 31,582 shares in the company, valued at approximately $12,790,710. The trade was a 17.07% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, VP Luther E. Peters sold 4,850 shares of Cummins stock in a transaction that occurred on Friday, August 8th. The stock was sold at an average price of $389.19, for a total value of $1,887,571.50. Following the completion of the sale, the vice president owned 7,693 shares of the company's stock, valued at approximately $2,994,038.67. The trade was a 38.67% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 24,179 shares of company stock valued at $9,636,871 in the last 90 days. Company insiders own 0.41% of the company's stock.

Cummins Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, September 4th. Shareholders of record on Friday, August 22nd will be issued a $2.00 dividend. The ex-dividend date is Friday, August 22nd. This is an increase from Cummins's previous quarterly dividend of $1.82. This represents a $8.00 dividend on an annualized basis and a yield of 2.0%. Cummins's dividend payout ratio is presently 37.61%.

About Cummins

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.