Cummins Inc. $CMI Stock Position Lifted by Independent Advisor Alliance

Key Points

• Independent Advisor Alliance increased its Cummins stake by 54.9% in the fourth quarter, bringing its holdings to 8,401 shares valued at about $4.29 million.
• Cummins reported strong quarterly results, with EPS of $6.15 beating estimates and revenue of $8.40 billion slightly above expectations; the company also posted year-over-year revenue growth.
• Analysts are turning more bullish on the stock, with several firms raising price targets and Cummins now carrying a Moderate Buy consensus rating and a $677.87 average target price.

Independent Advisor Alliance grew its position in shares of Cummins Inc. (NYSE:CMI - Free Report) by 54.9% during the fourth quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The fund owned 8,401 shares of the company's stock after buying an additional 2,977 shares during the period. Independent Advisor Alliance's holdings in Cummins were worth $4,288,000 as of its most recent SEC filing.

A number of other hedge funds have also recently added to or reduced their stakes in CMI. Brighton Jones LLC boosted its holdings in Cummins by 4.1% in the fourth quarter. Brighton Jones LLC now owns 2,112 shares of the company's stock worth $736,000 after purchasing an additional 83 shares during the period. Intech Investment Management LLC grew its position in shares of Cummins by 40.8% during the 1st quarter. Intech Investment Management LLC now owns 3,956 shares of the company's stock valued at $1,240,000 after buying an additional 1,146 shares during the last quarter. Treasurer of the State of North Carolina grew its position in shares of Cummins by 2.8% during the 2nd quarter. Treasurer of the State of North Carolina now owns 64,289 shares of the company's stock valued at $21,055,000 after buying an additional 1,759 shares during the last quarter. ICW Investment Advisors LLC bought a new stake in shares of Cummins during the 2nd quarter valued at about $225,000. Finally, Osterweis Capital Management Inc. bought a new stake in shares of Cummins during the 2nd quarter valued at about $31,000. Institutional investors and hedge funds own 83.46% of the company's stock.

Insider Activity at Cummins

In other news, VP Donald G. Jackson sold 1,600 shares of the firm's stock in a transaction on Tuesday, February 24th. The stock was sold at an average price of $600.13, for a total transaction of $960,208.00. Following the transaction, the vice president directly owned 7,214 shares of the company's stock, valued at approximately $4,329,337.82. This trade represents a 18.15% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, VP Amy Rochelle Davis sold 4,054 shares of the firm's stock in a transaction on Tuesday, March 3rd. The shares were sold at an average price of $561.34, for a total value of $2,275,672.36. Following the transaction, the vice president directly owned 15,807 shares in the company, valued at $8,873,101.38. This trade represents a 20.41% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last three months, insiders sold 21,667 shares of company stock valued at $13,946,861. 0.30% of the stock is owned by corporate insiders.

Analyst Upgrades and Downgrades

A number of equities research analysts recently weighed in on the stock. Citigroup boosted their price objective on shares of Cummins from $710.00 to $770.00 and gave the company a "buy" rating in a research report on Wednesday, May 6th. Zacks Research upgraded Cummins from a "hold" rating to a "strong-buy" rating in a research report on Thursday, May 7th. Evercore reiterated an "outperform" rating and set a $845.00 price target on shares of Cummins in a research report on Monday. Wells Fargo & Company increased their price target on Cummins from $693.00 to $794.00 and gave the stock an "overweight" rating in a research report on Wednesday, May 6th. Finally, Robert W. Baird set a $700.00 target price on Cummins in a research note on Wednesday, May 6th. One equities research analyst has rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and five have assigned a Hold rating to the company. Based on data from MarketBeat, Cummins presently has a consensus rating of "Moderate Buy" and a consensus price target of $677.87.

More Cummins News

Here are the key news stories impacting Cummins this week:

• Positive Sentiment: Cummins’ latest quarterly results beat expectations, with EPS of $6.15 topping estimates and revenue of $8.40 billion slightly ahead of forecasts, reinforcing confidence in business momentum.
• Positive Sentiment: Analysts have turned more bullish, including Citigroup raising its price target to $770, Barclays lifting its target to $760, Evercore reiterating an outperform rating with an $845 target, and Zacks upgrading the stock to strong-buy.
• Positive Sentiment: The company declared a quarterly dividend of $2.00 per share, signaling continued capital returns to shareholders and supporting the stock’s income appeal.
• Neutral Sentiment: Recent coverage highlighted Cummins’ relative performance versus other auto, tires and truck names, but this is more of a comparison piece than a fresh catalyst. Article Title
• Negative Sentiment: Multiple insiders sold shares over the past few days, including VP Jennifer Mary Bush, VP Nathan Stoner, and insider Brett Michael Merritt, which may slightly temper enthusiasm despite the company’s strong operating results.

Cummins Trading Up 0.9%

Cummins stock opened at $710.88 on Thursday. Cummins Inc. has a 52-week low of $307.90 and a 52-week high of $718.08. The firm has a market capitalization of $98.09 billion, a price-to-earnings ratio of 36.89, a PEG ratio of 1.78 and a beta of 1.27. The firm has a 50-day moving average price of $595.91 and a two-hundred day moving average price of $551.55. 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 quarterly earnings data on Tuesday, May 5th. The company reported $6.15 earnings per share (EPS) for the quarter, topping 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 prior year, the company posted $5.96 EPS. The business's revenue for the quarter was up 2.7% compared to the same quarter last year. Sell-side analysts expect that Cummins Inc. will post 28.39 earnings per share for the current year.

Cummins Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Thursday, June 4th. Stockholders of record on Friday, May 22nd will be issued a dividend of $2.00 per share. This represents a $8.00 dividend on an annualized basis and a dividend yield of 1.1%. The ex-dividend date of this dividend is Friday, May 22nd. Cummins's dividend payout ratio (DPR) is 41.52%.

Cummins 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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