Zacks Research Comments on Cummins' Q1 Earnings (NYSE:CMI)

Key Points

• Analysts at Zacks Research have increased their Q1 2026 EPS estimate for Cummins to $6.06, maintaining a "Strong-Buy" rating, while full-year earnings are projected at $24.56 for 2026.
• Cummins recently reported Q2 earnings of $6.43 per share, exceeding expectations, alongside a $2.00 quarterly dividend, reflecting an annualized yield of 1.9%.
• Insider transactions have occurred with CFO Mark Andrew Smith selling 8,000 shares at an average price of $439.30, indicating a 20.21% decrease in his ownership in the company.

Cummins Inc. (NYSE:CMI - Free Report) - Analysts at Zacks Research raised their Q1 2026 EPS estimates for shares of Cummins in a research report issued to clients and investors on Thursday, October 9th. Zacks Research analyst Team now forecasts that the company will post earnings of $6.06 per share for the quarter, up from their prior estimate of $6.03. Zacks Research currently has a "Strong-Buy" rating on the stock. 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 $6.46 EPS, Q3 2026 earnings at $5.96 EPS, Q4 2026 earnings at $6.09 EPS, FY2026 earnings at $24.56 EPS, Q1 2027 earnings at $6.19 EPS, Q3 2027 earnings at $6.71 EPS and FY2027 earnings at $26.65 EPS.

Several other equities research analysts also recently commented on CMI. Robert W. Baird upped their price objective on shares of Cummins from $315.00 to $355.00 and gave the company a "neutral" rating in a report on Friday, July 11th. Melius Research raised shares of Cummins from a "hold" rating to a "buy" rating and set a $500.00 price target on the stock in a research report on Wednesday, September 3rd. Barclays upped their price target on shares of Cummins from $381.00 to $387.00 and gave the company an "equal weight" rating in a research note on Monday, July 21st. Weiss Ratings reiterated a "buy (b)" rating on shares of Cummins in a research note on Saturday, September 27th. Finally, Wells Fargo & Company raised shares of Cummins to an "overweight" rating in a report on Monday, August 11th. One research analyst has rated the stock with a Strong Buy rating, ten have assigned a Buy rating, six have assigned a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat, Cummins presently has an average rating of "Moderate Buy" and a consensus price target of $397.43.

Cummins Stock Down 2.3%

CMI stock opened at $426.20 on Friday. The stock has a fifty day moving average of $406.06 and a 200-day moving average of $348.80. Cummins has a fifty-two week low of $260.02 and a fifty-two week high of $440.51. The company has a market capitalization of $58.73 billion, a price-to-earnings ratio of 20.04, a PEG ratio of 2.11 and a beta of 1.04. The company has a debt-to-equity ratio of 0.53, a quick ratio of 1.03 and a current ratio of 1.64.

Cummins (NYSE:CMI - Get Free Report) last released its earnings results on Tuesday, August 5th. The company reported $6.43 earnings per share (EPS) 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 during the quarter, compared to the consensus estimate of $8.45 billion. During the same period last year, the business posted $5.26 earnings per share. The business's revenue for the quarter was down 1.7% on a year-over-year basis.

Cummins Increases Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Thursday, September 4th. Investors of record on Friday, August 22nd were given a $2.00 dividend. This represents a $8.00 dividend on an annualized basis and a dividend yield of 1.9%. This is a boost from Cummins's previous quarterly dividend of $1.82. The ex-dividend date was Friday, August 22nd. Cummins's dividend payout ratio (DPR) is 37.61%.

Insider Activity at Cummins

In other news, CFO Mark Andrew Smith sold 8,000 shares of the business's stock in a transaction dated Monday, October 6th. The stock was sold at an average price of $439.30, for a total transaction of $3,514,400.00. Following the completion of the transaction, the chief financial officer owned 31,582 shares of the company's stock, valued at approximately $13,873,972.60. The trade was a 20.21% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, VP Amy Rochelle Davis sold 5,002 shares of the company's stock in a transaction that occurred on Thursday, August 14th. The stock was 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 in the company, valued at approximately $8,354,925.44. This trade represents a 19.43% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 43,119 shares of company stock valued at $17,674,285 in the last ninety days. 0.41% of the stock is currently owned by corporate insiders.

Institutional Trading of Cummins

A number of hedge funds have recently made changes to their positions in CMI. Fox Run Management L.L.C. bought a new position in Cummins in the first quarter valued at $2,749,000. Alpha Cubed Investments LLC purchased a new position in shares of Cummins during the 1st quarter valued at about $440,000. Assenagon Asset Management S.A. lifted its position in Cummins by 8.9% in the 1st quarter. Assenagon Asset Management S.A. now owns 13,666 shares of the company's stock worth $4,283,000 after buying an additional 1,114 shares during the last quarter. Invesco Ltd. boosted its stake in Cummins by 11.6% in the first quarter. Invesco Ltd. now owns 1,215,956 shares of the company's stock worth $381,129,000 after buying an additional 126,362 shares in the last quarter. Finally, Artemis Investment Management LLP raised its stake in shares of Cummins by 19.1% during the first quarter. Artemis Investment Management LLP now owns 7,747 shares of the company's stock worth $2,428,000 after acquiring an additional 1,241 shares in the last quarter. 83.46% of the stock is owned by institutional investors.

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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