Wells Fargo & Company Forecasts Strong Price Appreciation for Cummins (NYSE:CMI) Stock

Key Points

• Wells Fargo raised its price target on Cummins from $693 to $794 and kept an "overweight" rating, implying roughly 11.96% upside from the current price.
• Cummins beat Q1 expectations with EPS of $6.15 (vs. ~$5.63) and $8.40B revenue, raised its FY2026 revenue outlook and lifted guidance, sending shares up about 5.1% to $709.18.
• Analyst views are mixed (11 Buys, 6 Holds) with a consensus target of $630.13, while insiders sold ~31,195 shares (~$18.4M) last quarter even as institutional ownership remains high (~83.5%).

Cummins (NYSE:CMI - Get Free Report) had its price objective boosted by Wells Fargo & Company from $693.00 to $794.00 in a research report issued on Wednesday,Benzinga reports. The brokerage currently has an "overweight" rating on the stock. Wells Fargo & Company's price target indicates a potential upside of 11.96% from the company's current price.

CMI has been the subject of several other reports. Zacks Research lowered Cummins from a "strong-buy" rating to a "hold" rating in a research note on Wednesday, January 28th. Citigroup reiterated a "buy" rating on shares of Cummins in a research note on Wednesday. Raymond James Financial upped their target price on Cummins from $585.00 to $675.00 and gave the company an "outperform" rating in a research note on Monday, February 9th. Wall Street Zen lowered Cummins from a "strong-buy" rating to a "buy" rating in a research note on Sunday, March 8th. Finally, UBS Group set a $565.00 price target on Cummins and gave the stock a "neutral" rating in a research note on Friday, February 6th. Eleven research analysts have rated the stock with a Buy rating and six have given a Hold rating to the company's stock. According to data from MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus price target of $630.13.

Cummins Trading Up 5.1%

Cummins stock traded up $34.30 during trading on Wednesday, hitting $709.18. The company's stock had a trading volume of 136,878 shares, compared to its average volume of 904,988. The stock has a market capitalization of $97.98 billion, a price-to-earnings ratio of 34.46, a P/E/G ratio of 2.08 and a beta of 1.27. The stock's fifty day moving average is $582.66 and its 200 day moving average is $539.56. Cummins has a 1-year low of $296.59 and a 1-year high of $704.59. The company has a debt-to-equity ratio of 0.51, a quick ratio of 1.16 and a current ratio of 1.76.

Cummins (NYSE:CMI - Get Free Report) last released its earnings results on Tuesday, May 5th. The company reported $6.15 EPS for the quarter, beating the consensus estimate of $5.63 by $0.52. The firm had revenue of $8.40 billion during the quarter, compared to analyst estimates of $8.37 billion. Cummins had a return on equity of 25.71% and a net margin of 8.44%.The business's quarterly revenue was up 2.7% compared to the same quarter last year. During the same period in the prior year, the firm posted $5.96 earnings per share. As a group, equities research analysts predict that Cummins will post 26.05 EPS for the current year.

Insiders Place Their Bets

In other news, VP Amy Rochelle Davis sold 4,054 shares of the stock in a transaction dated Tuesday, March 3rd. The stock was sold at an average price of $561.34, for a total value of $2,275,672.36. Following the completion of the sale, the vice president owned 15,807 shares in the company, valued at approximately $8,873,101.38. This trade represents a 20.41% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, VP Donald G. Jackson sold 1,600 shares of the stock in a transaction dated Tuesday, February 24th. The shares were sold at an average price of $600.13, for a total value of $960,208.00. Following the completion of the sale, the vice president owned 7,214 shares of the company's stock, valued at approximately $4,329,337.82. This trade represents a 18.15% decrease in their position. The SEC filing for this sale provides additional information. In the last quarter, insiders have sold 31,195 shares of company stock valued at $18,397,489. Company insiders own 0.30% of the company's stock.

Institutional Investors Weigh In On Cummins

A number of large investors have recently modified their holdings of CMI. Vanguard Group Inc. boosted its holdings in Cummins by 0.6% in the fourth quarter. Vanguard Group Inc. now owns 17,746,775 shares of the company's stock valued at $9,058,841,000 after purchasing an additional 98,544 shares during the last quarter. State Street Corp increased its holdings in Cummins by 0.8% during the 4th quarter. State Street Corp now owns 6,509,852 shares of the company's stock worth $3,322,954,000 after purchasing an additional 49,628 shares during the last quarter. Geode Capital Management LLC increased its holdings in Cummins by 1.0% during the 4th quarter. Geode Capital Management LLC now owns 3,584,466 shares of the company's stock worth $1,822,534,000 after purchasing an additional 35,286 shares during the last quarter. Fisher Asset Management LLC increased its holdings in Cummins by 1.3% during the 4th quarter. Fisher Asset Management LLC now owns 3,410,723 shares of the company's stock worth $1,741,004,000 after purchasing an additional 43,722 shares during the last quarter. Finally, Northwestern Mutual Wealth Management Co. increased its holdings 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 purchasing an additional 2,434,876 shares during the last quarter. Institutional investors and hedge funds own 83.46% of the company's stock.

Cummins News Roundup

Here are the key news stories impacting Cummins this week:

• Positive Sentiment: Q1 results topped expectations — EPS $6.15 vs. consensus ~$5.6 and revenue $8.40B (slight beat). Power Systems and data‑center power lifted margins, supporting near‑term profitability. Zacks: Cummins' Q1 Earnings Beat
• Positive Sentiment: Company raised its revenue outlook for FY2026, citing robust demand for power‑generation equipment — a near‑term growth driver that mitigates some cyclical weakness in on‑highway markets. Reuters: Cummins raises revenue outlook
• Positive Sentiment: Management reiterated an improved outlook on the earnings call and lifted guidance despite trucking headwinds, signaling confidence in recovery and margin resilience. TipRanks: Cummins lifts outlook
• Neutral Sentiment: Earnings call materials and presentation are available for review; they provide segment detail (Power Systems strength vs. Engine softness) useful for modeling near‑term revenue/margin mix. Seeking Alpha: Q1 presentation
• Neutral Sentiment: Market commentary highlights improving index momentum (S&P/NYSE) around Cummins, which may amplify moves but is not a company fundamental. Kalkine: S&P 500 momentum
• Negative Sentiment: Management is refocusing the portfolio toward zero‑emission growth after a mixed quarter — a strategic shift that could require increased R&D/capex and create execution risk during the transition. Yahoo Finance: Refocus on zero emission
• Negative Sentiment: Engine and Components sales declined and trucking demand remains weak, pressuring segments that historically generate higher margins and potentially delaying cyclical recovery. Zacks: Key metrics analysis

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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