Zacks Research Issues Negative Forecast for Cummins Earnings

Key Points

• Zacks Research has lowered its Q2 2027 EPS estimate for Cummins to $6.69, down from $6.80, while maintaining a "Strong-Buy" rating on the stock.
• Despite the earnings forecast adjustment, several investment firms have upgraded their price targets, with Citigroup setting a new target price of $485.00.
• Cummins recently increased its quarterly dividend to $2.00 per share, reflecting a positive change from the previous dividend amount of $1.82.

Cummins Inc. (NYSE:CMI - Free Report) - Investment analysts at Zacks Research cut their Q2 2027 EPS estimates for Cummins in a research report issued on Thursday, October 9th. Zacks Research analyst Team now forecasts that the company will post earnings of $6.69 per share for the quarter, down from their prior estimate of $6.80. Zacks Research has a "Strong-Buy" rating on the stock. The consensus estimate for Cummins' current full-year earnings is $22.54 per share.

CMI has been the topic of several other reports. Barclays increased their price target on shares of Cummins from $381.00 to $387.00 and gave the company an "equal weight" rating in a research report on Monday, July 21st. Evercore ISI reiterated an "outperform" rating on shares of Cummins in a research report on Tuesday, August 19th. Melius upgraded 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. Weiss Ratings reiterated a "buy (b)" rating on shares of Cummins in a research report on Saturday, September 27th. Finally, Citigroup upped their price objective on shares of Cummins from $425.00 to $485.00 and gave the company a "buy" rating in a research note on Tuesday, September 23rd. One investment analyst has rated the stock with a Strong Buy rating, ten have issued a Buy rating, six have issued a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average price target of $397.43.

Cummins Trading Down 3.1%

Shares of CMI opened at $413.28 on Monday. The company has a current ratio of 1.64, a quick ratio of 1.03 and a debt-to-equity ratio of 0.53. The firm's 50-day moving average is $407.21 and its two-hundred day moving average is $349.70. Cummins has a twelve month low of $260.02 and a twelve month high of $440.51. The firm has a market capitalization of $56.94 billion, a P/E ratio of 19.43, a PEG ratio of 1.99 and a beta of 1.04.

Cummins (NYSE:CMI - Get Free Report) last issued its quarterly 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 net margin of 8.72% and a return on equity of 26.96%. The business had revenue of $8.64 billion for the quarter, compared to analyst estimates of $8.45 billion. During the same period in the previous year, the business posted $5.26 earnings per share. The business's revenue was down 1.7% compared to the same quarter last year.

Cummins Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Thursday, September 4th. Investors of record on Friday, August 22nd were paid a dividend of $2.00 per share. This is a positive change from Cummins's previous quarterly dividend of $1.82. The ex-dividend date of this dividend was Friday, August 22nd. This represents a $8.00 annualized dividend and a yield of 1.9%. Cummins's payout ratio is presently 37.61%.

Insider Activity

In other Cummins news, VP Luther E. Peters sold 4,850 shares of the firm's stock in a transaction on 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 completion of the transaction, the vice president directly owned 7,693 shares of the company's stock, valued at $2,994,038.67. This trade represents a 38.67% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, CFO Mark Andrew Smith sold 8,000 shares of the firm's stock in a transaction on 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 transaction, the chief financial officer directly owned 31,582 shares of the company's stock, valued at approximately $13,873,972.60. This represents a 20.21% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 43,119 shares of company stock worth $17,674,285 over the last three months. 0.41% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently modified their holdings of CMI. Brighton Jones LLC boosted its holdings in shares of Cummins by 4.1% in the 4th quarter. Brighton Jones LLC now owns 2,112 shares of the company's stock valued at $736,000 after buying an additional 83 shares during the period. GAMMA Investing LLC increased its stake in shares of Cummins by 22.3% in the first quarter. GAMMA Investing LLC now owns 3,801 shares of the company's stock valued at $1,191,000 after purchasing an additional 692 shares during the period. Assenagon Asset Management S.A. increased its stake in shares of Cummins by 8.9% in the first quarter. Assenagon Asset Management S.A. now owns 13,666 shares of the company's stock valued at $4,283,000 after purchasing an additional 1,114 shares during the period. NorthCrest Asset Manangement LLC acquired a new stake in shares of Cummins in the first quarter valued at approximately $282,000. Finally, Salem Investment Counselors Inc. increased its stake in shares of Cummins by 49.7% in the first quarter. Salem Investment Counselors Inc. now owns 292 shares of the company's stock valued at $92,000 after purchasing an additional 97 shares during the period. 83.46% of the stock is owned by institutional investors and hedge funds.

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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