What Is Happening With Cummins Stock?
Cummins (CMI)’s stock surged 41%, fueled by a sharp rise in its P/E multiple—even as revenue and margins slipped. Behind the scenes: a strong Q3 beat, upbeat analyst revisions, and a sweeter dividend, all offsetting insider sales and the buzz around Accelera charges. Let’s unpack the story.
Below is an analytical breakdown of stock movement into key contributing metrics.
| 5172025 | 11132025 | Change | |
|---|---|---|---|
| Stock Price ($) | 330.9 | 467.5 | 41.3% |
| Change Contribution By | LTM | LTM | |
| Total Revenues ($ Mil) | 33,873.0 | 33,581.0 | -0.9% |
| Net Income Margin (%) | 8.2% | 7.9% | -3.1% |
| P/E Multiple | 16.4 | 24.2 | 47.5% |
| Shares Outstanding (Mil) | 137.6 | 138.0 | -0.3% |
| Cumulative Contribution | 41.3% |
So what is happening here? The stock jumped 41%, driven mainly by a 47% boost in its P/E multiple, despite slight dips in revenue (-0.9%) and net margin (-3.1%). Let’s dig into what’s behind these moves.
Here Is Why Cummins Stock Moved
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- Q3 2025 Earnings Beat: Cummins reported Q3 2025 EPS of $5.59, beating estimates of $4.83, and revenue surpassed expectations.
- Accelera Charges: Q3 2025 results included $240 million in non-cash charges related to the Accelera electrolyzer business.
- Dividend Increase: The company increased its quarterly cash dividend to $2.00 per share, marking 16 consecutive years of increases.
- Analyst Upgrades: Several analysts raised price targets, including Citigroup to $530, and some upgraded ratings.
- Insider Selling: CEO Jennifer Rumsey sold over $2.1M in stock in November 2025; other insiders also sold shares.
Our Current Assesment Of CMI Stock
Opinion: We currently find CMI stock unattractive. Why so? Have a look at the full story. Read Buy or Sell CMI Stock to see what drives our current opinion.
Risk: To get a sense of risk for Cummins (CMI), check how much it fell during major market sell-offs. It dropped 57% in the Dot-Com crash and took an even bigger hit of 76% during the Global Financial Crisis. The 2018 correction and inflation shock caused more moderate drops around 30%, while the Covid sell-off knocked it down about 42%. Even for a solid name, sharp market downturns can lead to significant losses. Quality matters, but during severe sell-offs, few stocks avoid deep pullbacks.
CMI stock may have seen strong gains recently, but investing in a single stock without detailed, thorough analysis can be risky. The Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 — the S&P 500, S&P mid-cap, and Russell 2000 indices. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.