Cummins (NYSE:CMI) Trading Down 4.8% – Time to Sell?

Posted by Brenda Bartman on May 23rd, 2026

Cummins Inc. (NYSE:CMI – Get Free Report) shares were down 4.8% during mid-day trading on Thursday . The company traded as low as $648.01 and last traded at $637.93. Approximately 104,255 shares were traded during trading, a decline of 89% from the average daily volume of 909,246 shares. The stock had previously closed at $669.87.

Key Stories Impacting Cummins

Here are the key news stories impacting Cummins this week:

Positive Sentiment: Zacks Research raised multiple earnings forecasts for Cummins, including FY2026 to $29.28 per share, FY2027 to $31.73, and FY2028 to $35.32, while maintaining a Strong-Buy rating. Cummins stock page
Positive Sentiment: The analyst also lifted near-term quarterly estimates across 2026 and 2027, suggesting expectations for sustained earnings momentum rather than a one-quarter boost. Cummins stock page
Positive Sentiment: At its investor day, Cummins said it is raising its 2030 financial targets and announced large-engine capacity and product investments, signaling confidence in future growth and profitability. Business Wire article
Positive Sentiment: Coverage of the investor event also highlighted how Cummins is positioning itself for opportunities tied to the AI boom, which may have helped sentiment around the stock. Barron’s article

Wall Street Analyst Weigh In

A number of equities research analysts have issued reports on CMI shares. Truist Financial set a $815.00 price objective on shares of Cummins in a report on Wednesday, May 6th. Morgan Stanley increased their price objective on shares of Cummins from $675.00 to $752.00 and gave the company an “overweight” rating in a report on Wednesday, May 6th. Wall Street Zen lowered shares of Cummins from a “strong-buy” rating to a “buy” rating in a report on Sunday, March 8th. JPMorgan Chase & Co. increased their price objective on shares of Cummins from $600.00 to $725.00 and gave the company a “neutral” rating in a report on Wednesday, May 6th. Finally, Robert W. Baird set a $700.00 price objective on shares of Cummins in a report on Wednesday, May 6th. One research analyst has rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and five have given a Hold rating to the company’s stock. Based on data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $677.87.

Get Our Latest Research Report on CMI

Cummins Stock Up 0.3%

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 capitalization of $88.37 billion, a P/E ratio of 33.23, a P/E/G ratio of 1.58 and a beta of 1.27. The business has a 50-day moving average price of $612.02 and a 200 day moving average price of $562.53.

Cummins (NYSE:CMI – Get Free Report) last posted its earnings results on Tuesday, May 5th. The company reported $6.15 EPS for the quarter, beating analysts’ consensus estimates 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 return on equity of 25.25% and a net margin of 7.89%.The company’s quarterly revenue was up 2.7% compared to the same quarter last year. During the same period in the prior year, the company earned $5.96 EPS. On average, equities analysts expect that Cummins Inc. will post 28.93 EPS for the current fiscal year.

Cummins Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Thursday, June 4th. Stockholders of record on Friday, May 22nd will be given a dividend of $2.00 per share. This represents a $8.00 dividend on an annualized basis and a dividend yield of 1.2%. The ex-dividend date is Friday, May 22nd. Cummins’s dividend payout ratio is currently 41.52%.

Insider Activity

In other news, VP Donald G. Jackson sold 1,600 shares of the stock in a transaction that occurred on Tuesday, February 24th. The stock was sold at an average price of $600.13, for a total transaction of $960,208.00. Following the completion of the transaction, the vice president directly owned 7,214 shares in the company, valued at approximately $4,329,337.82. This represents a 18.15% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, VP Amy Rochelle Davis sold 4,054 shares of the stock in a transaction that occurred on Tuesday, March 3rd. The shares were sold at an average price of $561.34, for a total value of $2,275,672.36. Following the transaction, the vice president owned 15,807 shares of the company’s stock, valued at $8,873,101.38. This represents a 20.41% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last ninety days, insiders sold 22,397 shares of company stock worth $14,465,833. 0.30% of the stock is owned by corporate insiders.

Institutional Trading of Cummins

A number of institutional investors have recently bought and sold shares of CMI. Thompson Investment Management Inc. bought a new stake in Cummins in the fourth quarter worth $26,000. Activest Wealth Management lifted its position in Cummins by 537.5% in the fourth quarter. Activest Wealth Management now owns 51 shares of the company’s stock worth $26,000 after buying an additional 43 shares during the last quarter. Cedar Mountain Advisors LLC lifted its position in Cummins by 1,500.0% in 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 last quarter. Wellington Shields Capital Management LLC bought a new stake in Cummins in the fourth quarter worth $27,000. Finally, Flagship Wealth Advisors LLC bought a new stake in Cummins in the third quarter worth $28,000. 83.46% of the stock is currently owned by institutional investors.

About Cummins

(Get Free Report)

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.