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

Key Points

• Zacks Research raised its Q1 2027 EPS estimate for Cummins to $6.73 from $6.47 and kept a Strong-Buy rating on the stock. The firm also lifted its longer-term earnings outlook, including FY2027 EPS to $32.40 and FY2028 EPS to $36.03.
• Cummins recently beat Q1 earnings expectations, reporting $6.15 EPS versus the $5.63 consensus, while revenue came in at $8.40 billion, slightly ahead of estimates. Revenue was up 2.7% year over year, and the company posted a 25.25% return on equity.
• The stock has strong analyst support, with a consensus rating of Moderate Buy and an average price target of $705.79. Shares were trading around $677.76, and the company also paid a $2.00 quarterly dividend, equal to an annualized yield of about 1.2%.

Cummins Inc. (NYSE:CMI - Free Report) - Zacks Research raised their Q1 2027 earnings per share estimates for Cummins in a report released on Thursday, June 4th. Zacks Research analyst Team now expects that the company will post earnings of $6.73 per share for the quarter, up from their prior estimate of $6.47. Zacks Research has a "Strong-Buy" rating on the stock. The consensus estimate for Cummins' current full-year earnings is $29.29 per share. Zacks Research also issued estimates for Cummins' Q2 2027 earnings at $8.30 EPS, Q3 2027 earnings at $8.58 EPS, Q4 2027 earnings at $8.79 EPS, FY2027 earnings at $32.40 EPS, Q1 2028 earnings at $8.00 EPS and FY2028 earnings at $36.03 EPS.

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

A number of other research analysts have also recently issued reports on CMI. Robert W. Baird set a $700.00 price objective on Cummins in a research note on Wednesday, May 6th. Truist Financial set a $815.00 price objective on Cummins in a research note on Wednesday, May 6th. Morgan Stanley lifted their price objective on Cummins from $675.00 to $752.00 and gave the company an "overweight" rating in a research note on Wednesday, May 6th. Wells Fargo & Company lifted their price objective on Cummins from $693.00 to $794.00 and gave the company an "overweight" rating in a research note on Wednesday, May 6th. Finally, Wall Street Zen lowered Cummins from a "strong-buy" rating to a "buy" rating in a report on Sunday, March 8th. One research analyst has rated the stock with a Strong Buy rating, ten have assigned a Buy rating and five have issued a Hold rating to the company's stock. Based on data from MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus price target of $705.79.

Cummins Stock Down 0.7%

Shares of NYSE:CMI opened at $677.76 on Friday. The stock has a fifty day simple moving average of $633.79 and a two-hundred day simple moving average of $576.06. The stock has a market capitalization of $93.52 billion, a price-to-earnings ratio of 35.17, a PEG ratio of 1.67 and a beta of 1.23. Cummins has a 12-month low of $307.90 and a 12-month high of $718.08. The company has a current ratio of 1.71, a quick ratio of 1.11 and a debt-to-equity ratio of 0.50.

Cummins Announces Dividend

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

Insiders Place Their Bets

In other Cummins news, insider Brett Michael Merritt sold 701 shares of Cummins stock in a transaction on Monday, May 11th. The stock was sold at an average price of $688.75, for a total value of $482,813.75. Following the completion of the sale, the insider owned 10,404 shares of the company's stock, valued at approximately $7,165,755. This trade represents a 6.31% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, EVP Bonnie J. Fetch sold 652 shares of Cummins stock in a transaction on Monday, May 11th. The stock was sold at an average price of $700.19, for a total value of $456,523.88. Following the completion of the sale, the executive vice president directly owned 11,679 shares of the company's stock, valued at approximately $8,177,519.01. The trade was a 5.29% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders have sold 13,579 shares of company stock worth $9,377,684. 0.30% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Cummins

A number of institutional investors and hedge funds have recently modified their holdings of CMI. Brighton Jones LLC boosted its stake in shares of Cummins by 4.1% in the 4th quarter. Brighton Jones LLC now owns 2,112 shares of the company's stock worth $736,000 after buying an additional 83 shares during the last quarter. Intech Investment Management LLC boosted its stake in shares of Cummins by 40.8% in the 1st quarter. Intech Investment Management LLC now owns 3,956 shares of the company's stock worth $1,240,000 after buying an additional 1,146 shares during the last quarter. Treasurer of the State of North Carolina boosted its stake in shares of Cummins by 2.8% in the 2nd quarter. Treasurer of the State of North Carolina now owns 64,289 shares of the company's stock worth $21,055,000 after buying an additional 1,759 shares during the last quarter. ICW Investment Advisors LLC purchased a new position in shares of Cummins in the 2nd quarter worth $225,000. Finally, Osterweis Capital Management Inc. purchased a new position in shares of Cummins in the 2nd quarter worth $31,000. 83.46% of the stock is currently owned by hedge funds and other institutional investors.

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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