Collaborative Fund Advisors LLC Invests $2.06 Million in Cummins Inc. $CMI

Key Points

• Collaborative Fund Advisors LLC opened a new position in Cummins during the first quarter, buying 3,823 shares valued at about $2.06 million. The stake makes Cummins roughly 1.3% of the firm’s holdings.
• Cummins continues to see broad institutional support, with major holders like Vanguard, State Street, and Geode increasing positions; overall, 83.46% of the stock is owned by hedge funds and other institutions.
• Analyst sentiment has turned more bullish, with multiple firms raising price targets and earnings estimates. Cummins also recently beat quarterly EPS expectations, reporting $6.15 per share versus the $5.63 consensus.

Collaborative Fund Advisors LLC bought a new stake in shares of Cummins Inc. (NYSE:CMI - Free Report) during the 1st quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The institutional investor bought 3,823 shares of the company's stock, valued at approximately $2,057,000. Cummins makes up approximately 1.3% of Collaborative Fund Advisors LLC's holdings, making the stock its 20th biggest holding.

Several other institutional investors and hedge funds also recently added to or reduced their stakes in CMI. Vanguard Group Inc. raised its holdings in Cummins by 0.6% during the 4th quarter. Vanguard Group Inc. now owns 17,746,775 shares of the company's stock valued at $9,058,841,000 after buying an additional 98,544 shares during the period. State Street Corp raised its stake in shares of Cummins by 0.8% in the fourth quarter. State Street Corp now owns 6,509,852 shares of the company's stock valued at $3,322,954,000 after acquiring an additional 49,628 shares during the period. Geode Capital Management LLC lifted its holdings in shares of Cummins by 1.0% in the 4th quarter. Geode Capital Management LLC now owns 3,584,466 shares of the company's stock worth $1,822,534,000 after acquiring an additional 35,286 shares during the last quarter. Fisher Asset Management LLC boosted its stake in shares of Cummins by 1.3% during the 4th quarter. Fisher Asset Management LLC now owns 3,410,723 shares of the company's stock worth $1,741,004,000 after purchasing an additional 43,722 shares during the period. Finally, Northwestern Mutual Wealth Management Co. grew its holdings in Cummins by 10,317.7% during the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 2,458,475 shares of the company's stock valued at $1,254,929,000 after purchasing an additional 2,434,876 shares during the last quarter. Hedge funds and other institutional investors own 83.46% of the company's stock.

More Cummins News

Here are the key news stories impacting Cummins this week:

• Positive Sentiment: Truist Financial raised its price target on Cummins to $901 from $815 and kept a buy rating, implying substantial upside from the current share price. This kind of target increase can support investor confidence. Benzinga article
• Positive Sentiment: Zacks Research raised earnings estimates across multiple periods for Cummins, including Q1 2027, Q2 2027, Q3 2027, Q4 2027, and FY2027, while reiterating a Strong-Buy view. Higher earnings forecasts often signal stronger expected business performance.
• Positive Sentiment: Cummins was also added to Zacks’ Rank #1 Strong Buy lists, including a July income-stock screen, reinforcing the recent bullish sentiment from analysts. Zacks article
• Neutral Sentiment: A separate Zacks article compared Cummins’ stock performance with other auto/tires/trucks names this year, but it did not introduce a direct catalyst on its own. Zacks article

Cummins Stock Up 0.1%

Shares of NYSE:CMI opened at $662.21 on Monday. The business's 50 day moving average is $677.56 and its 200 day moving average is $604.21. The stock has a market cap of $91.38 billion, a P/E ratio of 34.36, a price-to-earnings-growth ratio of 1.62 and a beta of 1.22. Cummins Inc. has a 52-week low of $325.25 and a 52-week high of $737.76. The company has a quick ratio of 1.11, a current ratio of 1.71 and a debt-to-equity ratio of 0.50.

Cummins (NYSE:CMI - Get Free Report) last issued its earnings results on Tuesday, May 5th. The company reported $6.15 earnings per share for the quarter, beating analysts' consensus estimates of $5.63 by $0.52. Cummins had a return on equity of 25.25% and a net margin of 7.89%.The business had revenue of $8.40 billion during the quarter, compared to analyst estimates of $8.37 billion. During the same period in the previous year, the company posted $5.96 EPS. Cummins's revenue was up 2.7% on a year-over-year basis. Sell-side analysts predict that Cummins Inc. will post 29.32 EPS for the current year.

Cummins Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Thursday, June 4th. Investors of record on Friday, May 22nd were issued a $2.00 dividend. This represents a $8.00 annualized dividend and a dividend yield of 1.2%. The ex-dividend date was Friday, May 22nd. Cummins's payout ratio is presently 41.52%.

Analyst Upgrades and Downgrades

Several brokerages have issued reports on CMI. Argus raised their price objective on shares of Cummins from $696.00 to $770.00 and gave the stock a "buy" rating in a research note on Monday, June 1st. Weiss Ratings cut Cummins from a "buy (b)" rating to a "buy (b-)" rating in a research note on Wednesday, May 6th. Wall Street Zen lowered Cummins from a "strong-buy" rating to a "buy" rating in a research note on Sunday, March 8th. Barclays boosted their price objective on Cummins from $610.00 to $760.00 and gave the company an "overweight" rating in a report on Wednesday, May 6th. Finally, Wells Fargo & Company upped their price objective on Cummins from $794.00 to $874.00 and gave the company an "overweight" rating in a research report on Wednesday, June 17th. One equities research analyst has rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and four have given a Hold rating to the company's stock. According to data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $738.00.

Insider Transactions at Cummins

In related news, EVP Bonnie J. Fetch sold 652 shares of the company's stock in a transaction dated Monday, May 11th. The shares were sold at an average price of $700.19, for a total value of $456,523.88. Following the completion of the sale, the executive vice president directly owned 11,679 shares of the company's stock, valued at $8,177,519.01. This represents a 5.29% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, VP Jennifer Mary Bush sold 5,000 shares of the stock in a transaction dated Tuesday, May 12th. The stock was sold at an average price of $696.21, for a total transaction of $3,481,050.00. Following the transaction, the vice president owned 11,986 shares in the company, valued at approximately $8,344,773.06. The trade was a 29.44% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 13,579 shares of company stock valued at $9,377,684 over the last three months. 0.30% of the stock is currently owned by corporate insiders.

About Cummins

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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