Zacks Research Has Negative View of Cummins FY2027 Earnings

Cummins Inc. (NYSE:CMI) – Equities research analysts at Zacks Research lowered their FY2027 EPS estimates for Cummins in a research note issued to investors on Tuesday, July 14th. Zacks Research analyst Team now forecasts that the company will post earnings per share of $33.53 for the year, down from their previous forecast of $33.76. Zacks Research has a “Hold” rating on the stock. The consensus estimate for Cummins’ current full-year earnings is $29.35 per share. Zacks Research also issued estimates for Cummins’ Q4 2027 earnings at $9.03 EPS, Q1 2028 earnings at $8.73 EPS, Q2 2028 earnings at $9.68 EPS and FY2028 earnings at $39.29 EPS.

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

A number of other brokerages have also commented on CMI. Wells Fargo & Company upped their price objective on Cummins from $794.00 to $874.00 and gave the company an “overweight” rating in a report on Wednesday, June 17th. JPMorgan Chase & Co. lifted their target price on Cummins from $600.00 to $725.00 and gave the stock a “neutral” rating in a report on Wednesday, May 6th. Raymond James Financial boosted their target price on shares of Cummins from $675.00 to $745.00 and gave the company an “outperform” rating in a research report on Tuesday, May 26th. Robert W. Baird set a $700.00 price target on shares of Cummins in a research note on Wednesday, May 6th. Finally, Barclays raised their price target on shares of Cummins from $610.00 to $760.00 and gave the stock an “overweight” rating in a research report on Wednesday, May 6th. Eleven investment analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company’s stock. According to data from MarketBeat.com, Cummins presently has a consensus rating of “Moderate Buy” and an average price target of $740.07.

Cummins Stock Performance

NYSE:CMI opened at $647.67 on Thursday. The stock has a market cap of $89.37 billion, a P/E ratio of 33.61, a PEG ratio of 1.58 and a beta of 1.22. The stock has a 50 day simple moving average of $677.02 and a 200 day simple moving average of $614.26. 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 has a 1-year low of $344.02 and a 1-year high of $737.76.

Institutional Investors Weigh In On Cummins

A number of large investors have recently bought and sold shares of CMI. Thompson Investment Management Inc. bought a new stake in shares of Cummins during the 4th quarter worth approximately $26,000. Activest Wealth Management increased its stake in Cummins by 537.5% in the fourth quarter. Activest Wealth Management now owns 51 shares of the company’s stock valued at $26,000 after acquiring an additional 43 shares during the last quarter. Cedar Mountain Advisors LLC increased its stake in Cummins by 1,500.0% in the first quarter. Cedar Mountain Advisors LLC now owns 48 shares of the company’s stock valued at $26,000 after acquiring an additional 45 shares during the last quarter. Wellington Shields Capital Management LLC acquired a new position in Cummins during the fourth quarter valued at approximately $27,000. Finally, Key Financial Inc raised its position in Cummins by 62.5% during the first quarter. Key Financial Inc now owns 52 shares of the company’s stock valued at $28,000 after purchasing an additional 20 shares in the last quarter. 83.46% of the stock is currently owned by institutional investors and hedge funds.

Insider Activity

In other news, VP Donald G. Jackson sold 730 shares of the stock in a transaction on Thursday, May 14th. The stock was sold at an average price of $710.92, for a total transaction of $518,971.60. Following the sale, the vice president directly owned 8,316 shares of the company’s stock, valued at approximately $5,912,010.72. This represents a 8.07% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CAO Nicole Lamb-Hale sold 2,408 shares of the firm’s stock in a transaction on Friday, May 8th. The stock was sold at an average price of $685.34, for a total value of $1,650,298.72. Following the completion of the transaction, the chief accounting officer owned 14,084 shares in the company, valued at $9,652,328.56. The trade was a 14.60% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders have sold 13,579 shares of company stock worth $9,377,684. 0.30% of the stock is currently owned by insiders.

Cummins Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, September 3rd. Shareholders of record on Friday, August 21st will be paid a dividend of $2.20 per share. This is a boost from Cummins’s previous quarterly dividend of $2.00. The ex-dividend date is Friday, August 21st. This represents a $8.80 dividend on an annualized basis and a yield of 1.4%. Cummins’s dividend payout ratio is 41.52%.

Key Headlines Impacting Cummins

Here are the key news stories impacting Cummins this week:

• Positive Sentiment: Morgan Stanley boosted its price target on Cummins and kept an overweight rating, signaling confidence in further upside. Benzinga
• Neutral Sentiment: Zacks Research slightly raised its Q3 2027 EPS estimate for Cummins to $9.02 from $9.00, a small change that suggests stable longer-term expectations. Article
• Neutral Sentiment: Other Zacks revisions were mixed but generally small, with slight cuts to some FY2027/FY2028 estimates and a continued Hold rating, suggesting analysts are not seeing a major near-term change in fundamentals. Article

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.