Birmingham Capital Management Co. Inc. AL Invests $9.86 Million in Cummins Inc. $CMI

Birmingham Capital Management Co. Inc. AL acquired a new stake in shares of Cummins Inc. (NYSE:CMI - Free Report) during the second quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund acquired 13,820 shares of the company's stock, valued at approximately $9,857,000. Cummins comprises approximately 3.7% of Birmingham Capital Management Co. Inc. AL's holdings, making the stock its 5th biggest holding.

Several other hedge funds have also recently made changes to their positions in the company. Valmark Advisers Inc. lifted its position in Cummins by 1.9% during the 1st quarter. Valmark Advisers Inc. now owns 877 shares of the company's stock worth $472,000 after acquiring an additional 16 shares during the period. Guardian Partners Inc. grew its stake in Cummins by 1.0% during the 1st quarter. Guardian Partners Inc. now owns 1,584 shares of the company's stock valued at $852,000 after purchasing an additional 16 shares during the last quarter. Nicolet Advisory Services LLC increased its holdings in shares of Cummins by 1.6% in the fourth quarter. Nicolet Advisory Services LLC now owns 1,101 shares of the company's stock valued at $619,000 after purchasing an additional 17 shares during the period. Uhlmann Price Securities LLC raised its stake in shares of Cummins by 2.4% in the first quarter. Uhlmann Price Securities LLC now owns 717 shares of the company's stock worth $386,000 after purchasing an additional 17 shares during the last quarter. Finally, ICW Investment Advisors LLC raised its stake in shares of Cummins by 2.6% in the fourth quarter. ICW Investment Advisors LLC now owns 723 shares of the company's stock worth $369,000 after purchasing an additional 18 shares during the last quarter. 83.46% of the stock is owned by institutional investors and hedge funds.

Cummins News Roundup

Here are the key news stories impacting Cummins this week:

• Positive Sentiment: Analyst support remains favorable. Jefferies reaffirmed its Buy rating, while Zacks Research raised its EPS forecasts across several periods: Q3 2026 to $8.51, FY2027 to $34.10 and FY2028 to $40.91. Zacks nevertheless maintains a Hold rating. Jefferies Sticks to Its Buy Rating for Cummins
• Positive Sentiment: AI-related power demand is a potential growth catalyst. Industry expectations for substantial hyperscaler spending on artificial intelligence are highlighting Cummins’ backup generators and power systems as “picks-and-shovels” beneficiaries as data centers face electricity constraints. Hyperscalers Will Spend $750 Billion on AI This Year. Cummins Sells the Backup Power.
• Positive Sentiment: The dividend was increased. Cummins declared a quarterly dividend of $2.20 per share, up from $2.00, equivalent to an $8.80 annualized payout and a roughly 1.5% yield. The increase reinforces the company’s shareholder-return appeal.
• Neutral Sentiment: Valuation and recent fundamentals are mixed. Cummins is valued at approximately 29 times earnings, and analysts expect about $30.06 in current-year EPS. Revenue recently grew 9.4% year over year to $9.46 billion, but quarterly EPS of $6.73 missed consensus by $0.48, indicating profitability remains a risk.
• Negative Sentiment: An insider reduced exposure. Vice President Earl Newsome sold 698 shares for approximately $399,410, cutting his direct holdings by 13.48%. The transaction is relatively small compared with his remaining position but may be viewed as a modest negative signal.

Insider Buying and Selling

In other news, VP Earl Newsome sold 698 shares of the business's stock in a transaction that occurred on Monday, August 24th. The stock was sold at an average price of $572.22, for a total value of $399,409.56. Following the completion of the sale, the vice president directly owned 4,479 shares in the company, valued at $2,562,973.38. The trade was a 13.48% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Insiders own 0.30% of the company's stock.

Wall Street Analyst Weigh In

CMI has been the subject of a number of research reports. Wells Fargo & Company lifted their target price on Cummins from $794.00 to $874.00 and gave the stock an "overweight" rating in a report on Wednesday, June 17th. Evercore reissued an "outperform" rating and set a $845.00 price target on shares of Cummins in a research report on Monday, May 11th. CICC Research initiated coverage on shares of Cummins in a research note on Sunday. They set an "outperform" rating for the company. Argus upped their price objective on shares of Cummins from $696.00 to $770.00 and gave the company a "buy" rating in a report on Monday, June 1st. Finally, Raymond James Financial increased their price objective on shares of Cummins from $675.00 to $745.00 and gave the stock an "outperform" rating in a research note on Tuesday, May 26th. Twelve equities research analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company's stock. According to data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $745.64.

Cummins Trading Up 1.0%

Shares of Cummins stock opened at $578.41 on Thursday. The firm has a 50-day simple moving average of $653.34 and a two-hundred day simple moving average of $628.37. The company has a debt-to-equity ratio of 0.48, a quick ratio of 1.13 and a current ratio of 1.73. Cummins Inc. has a fifty-two week low of $389.52 and a fifty-two week high of $737.76. The company has a market cap of $79.62 billion, a P/E ratio of 29.56, a price-to-earnings-growth ratio of 1.36 and a beta of 1.24.

Cummins (NYSE:CMI - Get Free Report) last posted its earnings results on Tuesday, August 4th. The company reported $6.73 EPS for the quarter, missing analysts' consensus estimates of $7.21 by ($0.48). Cummins had a net margin of 7.82% and a return on equity of 25.29%. The business had revenue of $9.46 billion for the quarter, compared to analyst estimates of $9.33 billion. During the same quarter last year, the business earned $6.43 earnings per share. Cummins's revenue was up 9.4% on a year-over-year basis. As a group, equities analysts predict that Cummins Inc. will post 30.06 earnings per share for the current fiscal year.

Cummins Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, September 3rd. Shareholders of record on Friday, August 21st will be given a dividend of $2.20 per share. This is an increase from Cummins's previous quarterly dividend of $2.00. This represents a $8.80 dividend on an annualized basis and a yield of 1.5%. The ex-dividend date is Friday, August 21st. Cummins's dividend payout ratio (DPR) is currently 44.97%.

Cummins Company Profile

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.

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