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

Cummins Inc. (NYSE:CMI) – Investment analysts at Zacks Research upped their Q1 2026 EPS estimates for Cummins in a research note issued to investors on Wednesday, December 31st. Zacks Research analyst Team now expects that the company will post earnings per share of $5.71 for the quarter, up from their previous estimate of $5.67. 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’ Q3 2026 earnings at $6.93 EPS, FY2026 earnings at $25.84 EPS, Q1 2027 earnings at $6.46 EPS, Q2 2027 earnings at $7.55 EPS, Q3 2027 earnings at $7.87 EPS and Q4 2027 earnings at $7.59 EPS.

CMI has been the subject of several other reports. JPMorgan Chase & Co. boosted their target price on Cummins from $400.00 to $460.00 and gave the stock a “neutral” rating in a research note on Tuesday, October 14th. Citigroup lifted their price objective on Cummins from $530.00 to $580.00 and gave the company a “buy” rating in a research note on Thursday, December 11th. Weiss Ratings restated a “buy (b-)” rating on shares of Cummins in a research note on Monday, December 29th. Truist Financial lifted their price target on shares of Cummins from $628.00 to $653.00 and gave the stock a “buy” rating in a research note on Thursday, December 18th. Finally, Raymond James Financial raised shares of Cummins from a “market perform” rating to an “outperform” rating and set a $585.00 price objective on the stock in a research report on Monday, December 22nd. One equities research analyst has rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating and five have given a Hold rating to the company’s stock. According to MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average target price of $492.75.

Cummins Stock Up 2.3%

Cummins stock opened at $522.19 on Monday. Cummins has a twelve month low of $260.02 and a twelve month high of $526.50. The stock’s fifty day simple moving average is $487.29 and its 200-day simple moving average is $421.17. The company has a current ratio of 1.77, a quick ratio of 1.11 and a debt-to-equity ratio of 0.52. The firm has a market capitalization of $72.08 billion, a P/E ratio of 27.10, a P/E/G ratio of 1.82 and a beta of 1.12.

Cummins (NYSE:CMI) last announced its earnings results on Thursday, November 6th. The company reported $5.59 earnings per share for the quarter, topping the consensus estimate of $4.83 by $0.76. Cummins had a net margin of 7.95% and a return on equity of 26.02%. The firm had revenue of $8.32 billion for the quarter, compared to the consensus estimate of $7.97 billion. During the same period in the prior year, the firm earned $5.86 EPS. The firm’s revenue for the quarter was down 1.6% on a year-over-year basis.

Cummins Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Thursday, December 4th. Shareholders of record on Friday, November 21st were issued a dividend of $2.00 per share. The ex-dividend date of this dividend was Friday, November 21st. This represents a $8.00 dividend on an annualized basis and a yield of 1.5%. Cummins’s dividend payout ratio (DPR) is presently 41.52%.

Insiders Place Their Bets

In other news, CEO Jennifer Rumsey sold 4,570 shares of the business’s stock in a transaction that occurred on Tuesday, November 11th. The shares were sold at an average price of $473.89, for a total transaction of $2,165,677.30. Following the completion of the sale, the chief executive officer owned 42,880 shares in the company, valued at approximately $20,320,403.20. The trade was a 9.63% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, insider Brett Michael Merritt sold 1,450 shares of the company’s stock in a transaction on Tuesday, November 25th. The shares were sold at an average price of $489.32, for a total transaction of $709,514.00. Following the completion of the transaction, the insider owned 9,271 shares of the company’s stock, valued at approximately $4,536,485.72. The trade was a 13.52% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders have sold 19,330 shares of company stock valued at $9,135,364. 0.41% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Cummins

Several hedge funds have recently made changes to their positions in CMI. Brighton Jones LLC increased its position in Cummins by 4.1% during the fourth 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 period. State of Wyoming acquired a new position in shares of Cummins in the 1st quarter valued at $50,000. Alliancebernstein L.P. increased its holdings in shares of Cummins by 10.4% in the 1st quarter. Alliancebernstein L.P. now owns 184,205 shares of the company’s stock valued at $57,737,000 after acquiring an additional 17,418 shares during the period. Integrated Wealth Concepts LLC raised its position in Cummins by 8.3% in the 1st quarter. Integrated Wealth Concepts LLC now owns 8,466 shares of the company’s stock valued at $2,654,000 after purchasing an additional 646 shares during the last quarter. Finally, NewEdge Advisors LLC boosted its stake in Cummins by 47.8% during the 1st quarter. NewEdge Advisors LLC now owns 44,903 shares of the company’s stock worth $14,074,000 after purchasing an additional 14,528 shares during the period. Hedge funds and other institutional investors own 83.46% of the company’s stock.

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.