Zacks Research Has Positive Outlook for Cummins Q1 Earnings

Key Points

• Zacks Research raised its Q1 2028 EPS estimate for Cummins to $8.79 from $8.00 and kept a Strong-Buy rating on the stock. The firm also projected Q2 2028 EPS of $9.69 and FY2028 EPS of $39.39.
• Cummins recently beat its latest quarterly earnings expectations, reporting $6.15 EPS versus the $5.63 consensus and revenue of $8.40 billion, slightly above estimates. Revenue also increased 2.7% year over year.
• Analyst sentiment remains broadly positive, with several firms raising price targets and the stock carrying a consensus Moderate Buy rating. The average target price is $738.00, while the shares recently traded down 4.1% to $650.11.

Cummins Inc. (NYSE:CMI - Free Report) - Equities researchers at Zacks Research lifted their Q1 2028 EPS estimates for Cummins in a note issued to investors on Thursday, July 2nd. Zacks Research analyst Team now expects that the company will post earnings per share of $8.79 for the quarter, up from their previous forecast of $8.00. Zacks Research has a "Strong-Buy" rating on the stock. The consensus estimate for Cummins' current full-year earnings is $29.32 per share. Zacks Research also issued estimates for Cummins' Q2 2028 earnings at $9.69 EPS and FY2028 earnings at $39.39 EPS.

Cummins (NYSE:CMI - Get Free Report) last released its quarterly earnings results on Tuesday, May 5th. The company reported $6.15 earnings per share for the quarter, topping the consensus estimate of $5.63 by $0.52. The firm had revenue of $8.40 billion during the quarter, compared to the consensus estimate of $8.37 billion. Cummins had a net margin of 7.89% and a return on equity of 25.25%. The company's revenue for the quarter was up 2.7% on a year-over-year basis. During the same quarter in the prior year, the firm earned $5.96 EPS.

A number of other brokerages have also weighed in on CMI. Morgan Stanley raised their price objective on Cummins from $675.00 to $752.00 and gave the company an "overweight" rating in a report on Wednesday, May 6th. Argus raised their price target on shares of Cummins from $696.00 to $770.00 and gave the stock a "buy" rating in a research note on Monday, June 1st. Weiss Ratings lowered shares of Cummins from a "buy (b)" rating to a "buy (b-)" rating in a research report on Wednesday, May 6th. Truist Financial upped their price objective on shares of Cummins from $815.00 to $901.00 and gave the company a "buy" rating in a research note on Thursday, July 2nd. Finally, Wells Fargo & Company increased their price objective on shares of Cummins from $794.00 to $874.00 and gave the company an "overweight" rating in a report on Wednesday, June 17th. One investment analyst has rated the stock with a Strong Buy rating, eleven have given a Buy rating and four have issued a Hold rating to the company's stock. According to MarketBeat.com, Cummins presently has an average rating of "Moderate Buy" and a consensus target price of $738.00.

Cummins Trading Down 4.1%

CMI stock opened at $650.11 on Tuesday. Cummins has a 12-month low of $328.02 and a 12-month high of $737.76. The business's 50-day moving average is $677.56 and its 200 day moving average is $604.21. The company has a current ratio of 1.71, a quick ratio of 1.11 and a debt-to-equity ratio of 0.50. The stock has a market cap of $89.71 billion, a price-to-earnings ratio of 33.73, a PEG ratio of 1.62 and a beta of 1.22.

Institutional Investors Weigh In On Cummins

A number of institutional investors and hedge funds have recently made changes to their positions in the stock. Thompson Investment Management Inc. acquired a new stake in Cummins in the 4th quarter valued at approximately $26,000. Activest Wealth Management lifted its stake in Cummins by 537.5% during the fourth quarter. Activest Wealth Management now owns 51 shares of the company's stock worth $26,000 after purchasing an additional 43 shares in the last quarter. Cedar Mountain Advisors LLC boosted its position in shares of Cummins by 1,500.0% during the first quarter. Cedar Mountain Advisors LLC now owns 48 shares of the company's stock worth $26,000 after buying an additional 45 shares during the period. Wellington Shields Capital Management LLC acquired a new stake in shares of Cummins in the fourth quarter valued at $27,000. Finally, Key Financial Inc grew its stake in shares of Cummins by 62.5% in the first quarter. Key Financial Inc now owns 52 shares of the company's stock valued at $28,000 after buying an additional 20 shares in the last quarter. 83.46% of the stock is owned by hedge funds and other institutional investors.

Insider Buying and Selling

In related news, VP Marvin Boakye sold 3,481 shares of the firm's stock in a transaction dated Friday, May 8th. The stock was sold at an average price of $679.90, for a total transaction of $2,366,731.90. Following the completion of the sale, the vice president directly owned 8,508 shares of the company's stock, valued at approximately $5,784,589.20. This trade represents a 29.03% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, VP Jennifer Mary Bush sold 5,000 shares of the business's stock in a transaction dated Tuesday, May 12th. The shares were sold at an average price of $696.21, for a total transaction of $3,481,050.00. Following the completion of the sale, the vice president owned 11,986 shares in the company, valued at approximately $8,344,773.06. This trade represents a 29.44% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 13,579 shares of company stock valued at $9,377,684 in the last ninety days. Company insiders own 0.30% of the company's stock.

Cummins Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Thursday, June 4th. Investors of record on Friday, May 22nd were issued a $2.00 dividend. The ex-dividend date was Friday, May 22nd. This represents a $8.00 dividend on an annualized basis and a yield of 1.2%. Cummins's dividend payout ratio is currently 41.52%.

Cummins Company Profile

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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