Wells Fargo Reiterates Buy Rating on Cummins Inc.
Wells Fargo reaffirms its buy rating for Cummins Inc., targeting $874, a 25.03% upside from the current price.
Key Points
- Wells Fargo reiterated its buy rating on Cummins Inc. with a price target of $874 on June 17, 2026.
- Wells Fargo's $874 price target implies 25.03% upside from Cummins Inc.'s ($CMI) current $699.05 share price.
- Cummins Inc. shares are trading near $699.97, with a market cap of approximately $96.6 billion and a forward P/E ratio of 20.65.
- Insider trades at Cummins Inc. include sales by several executives in May 2026, and analysts have maintained buy ratings with various target prices.
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Wells Fargo reiterated its buy rating on Cummins Inc. (NYSE: CMI) on June 17, 2026. The firm set a price target of $874 for the stock, which is currently trading near $699.97. Analyst Jerry Revich maintained the positive outlook as part of a broader evaluation of the company.
Cummins Inc. Stock Up 23.8%
Shares of NYSE:CMI are trading close to $699.97. Cummins Inc. has a market capitalization of about $96.6 billion, with a P/E ratio of 36.36 and a forward P/E of 20.65. The stock's beta is 1.24, indicating moderate volatility compared to the market. Over the past year, the stock has ranged from a low of $307.9 to a high of $718.08. The 50-day moving average is $656.55, and the 200-day moving average is $539.76. The company maintains a current ratio of 1.71 and a quick ratio of 0.96, with a debt-to-equity ratio of 61.62.
$CMI price target
Past daily closes and this analyst's 12-month price target. Not investment advice.
Recent Earnings
In its most recent financial results, Cummins Inc. reported revenue of approximately $33.89 billion, marking a growth of 2.7%. The company achieved an earnings per share (EPS) of $19.25, with a net margin of 7.89% and a return on equity (ROE) of 21.99%. The next earnings report is expected on August 4, 2026.
Earnings drift grade
Outlook vs expectations on the last report — not price action.
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Forward outlook
7 analysts raised price targets.
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EPS & revenue
EPS beat estimates by 9.0%. Revenue met estimates.
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Profit surprise
EBITDA missed by 39 percent. Operating income missed by 16 percent.
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Pre-earnings setup
Expectations were about average.
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Analyst signal
7 target raises.
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Earnings quality
Operating margin down 2.6 points. Positive free cash flow.
Earnings Call Summary
The quarter delivered $8.4 billion in revenue, up 3 percent year over year, with power generation strong but North America trucks still weak at the start. Management highlighted a major hybrid mining truck deployment in Chile and progress on new 2027 engines. They sold the low-pressure fuel cell business to Alstom, cutting future losses in the Accelera division. The strong finish to the quarter and improving orders lead management to expect the year to be much better, with better momentum in trucks and accelerating data center buildouts globally.
Guidance Cummins raised its full year revenue forecast to grow 8 to 11 percent, up from 3 to 8 percent prior. The company expects power generation revenue to jump 15 to 25 percent, driven by strong data center demand globally. North America truck production is forecast at 230,000 to 250,000 units for heavy-duty and 125,000 to 135,000 units for medium-duty, higher than previous expectations.
Slightly positive report. The quarter was acceptable, but the forward setup is not strong.
Dividend
Cummins Inc. offers an annual dividend rate of $8.00, translating to a dividend yield of 1.14%. The dividend payout ratio stands at 40.62%, indicating the portion of earnings paid out as dividends.
Insider Buying and Selling at Cummins Inc.
Recent insider activity at Cummins Inc. includes several transactions in May 2026. Notably, Donald Jackson, VP of Treasury & Tax, sold 730 shares at an average price of $710.92 on May 14. Additionally, Brett Michael Merritt, V.P & President of the Engine Business, sold 218 shares on May 19. On May 12, both Matthew Tsien and Karen Quintos purchased 306 shares each.
Analysts Set New Price Targets
On June 17, 2026, Wells Fargo maintained its buy rating on Cummins Inc. with a price target of $874. Earlier in June, UBS upgraded the stock to a buy with a target of $850. Other analysts, including those from Argus Research and Raymond James, have also maintained buy ratings with targets of $770 and $745, respectively. The consensus recommendation is a buy, with an average target price of $740.12 based on 19 analyst opinions.
About Cummins Inc.
Cummins Inc., headquartered in Columbus, Indiana, is a key player in the industrial sector, specifically in specialty industrial machinery. The company operates through multiple segments, including Engine, Distribution, Components, Power Systems, and Accelera. It provides a range of products from diesel and natural gas engines to drivetrain systems and power solutions. Led by CEO Jennifer W. Rumsey, Cummins employs around 67,400 people.
Bottom Line
Wells Fargo's reiteration of a buy rating with a substantial price target reflects confidence in Cummins Inc.'s future growth prospects. Investors often track these ratings for insights into potential stock performance. It's important to remember that these analyst ratings are based on data available at the time and may not reflect the most current market conditions.
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