Cummins' Stock Slides to 381st in Trading Volume Amid Mixed Analyst Sentiment and Strong Earnings

Cummins Inc. (CMI) closed 0.78% lower on September 3, 2025, with a trading volume of $270 million, ranking 381st in market activity. The stock faced mixed analyst sentiment as Melius Research upgraded its rating to "Buy" from "Hold," setting a $500 price target—a 25% upside from the current level. This follows recent upgrades from Wolfe Research ("Outperform"), Truist Securities (raising its target to $380), and Citigroup (raising to $425). Despite these positive revisions, institutional ownership saw a 9.1% reduction by Royal Bank of Canada, while Vident Advisory LLC increased holdings by 64.1%.

The analyst community remains divided, with an average one-year target of $405.98 (3.8% upside) and a "Outperform" consensus rating. Cummins' financial performance, however, showed resilience, reporting Q2 earnings of $6.43 per share—$1.22 above estimates—and $8.64 billion in revenue. The company also raised its quarterly dividend to $2.00 per share, reflecting a 2.0% yield. Analysts highlighted potential growth in AI-driven infrastructure demand for large engines and generator sets, though macroeconomic uncertainties and a challenging truck market downcycle remain headwinds.

Backtesting data indicates the stock has a 52-week range of $260.02 to $408.38. Institutional ownership stands at 83.46%, while the stock trades at 18.73x forward earnings and 0.53 debt-to-equity. Recent upgrades from JPMorgan, Wells Fargo, and CFRA contrast with a downgrade from Freedom Broker, underscoring divergent views on Cummins' ability to navigate sector volatility.