Independent Financial Group LLC Invests $1.55 Million in Cummins Inc. $CMI

Key Points

• Independent Financial Group LLC opened a new position in Cummins during the first quarter, buying 2,877 shares worth about $1.55 million.
• Cummins reported better-than-expected quarterly results, posting EPS of $6.15 versus the $5.63 estimate and revenue of $8.40 billion, while also raising its quarterly dividend to $2.20 per share from $2.00.
• Wall Street sentiment remains constructive, with multiple analysts lifting price targets and the stock carrying a Moderate Buy consensus rating and average target price of about $740.07.

Independent Financial Group LLC bought a new stake in shares of Cummins Inc. (NYSE:CMI - Free Report) during the 1st quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The firm bought 2,877 shares of the company's stock, valued at approximately $1,548,000.

Other large investors also recently added to or reduced their stakes in the company. Juno Financial Group LLC purchased a new position in shares of Cummins in the fourth quarter worth $883,000. Truist Financial Corp boosted its position in Cummins by 4.8% during the 4th quarter. Truist Financial Corp now owns 64,005 shares of the company's stock valued at $32,671,000 after buying an additional 2,951 shares during the period. Nordea Investment Management AB boosted its position in Cummins by 103.8% during the 4th quarter. Nordea Investment Management AB now owns 546,540 shares of the company's stock valued at $280,397,000 after buying an additional 278,350 shares during the period. Smith Salley Wealth Management grew its holdings in Cummins by 1,381.8% in the 4th quarter. Smith Salley Wealth Management now owns 21,768 shares of the company's stock worth $11,111,000 after acquiring an additional 20,299 shares during the last quarter. Finally, Westfield Capital Management Co. LP bought a new stake in Cummins in the 4th quarter worth $7,797,000. Hedge funds and other institutional investors own 83.46% of the company's stock.

Cummins Trading Down 0.1%

NYSE:CMI opened at $647.67 on Monday. The company has a 50-day moving average price of $677.02 and a 200-day moving average price of $614.96. Cummins Inc. has a 12 month low of $344.02 and a 12 month high of $737.76. The company has a current ratio of 1.71, a quick ratio of 1.11 and a debt-to-equity ratio of 0.50. The stock has a market cap of $89.37 billion, a price-to-earnings ratio of 33.61, a P/E/G ratio of 1.58 and a beta of 1.22.

Cummins (NYSE:CMI - Get Free Report) last announced 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 net margin of 7.89% and a return on equity of 25.25%. The firm had revenue of $8.40 billion for the quarter, compared to analyst estimates of $8.37 billion. During the same quarter in the previous year, the firm posted $5.96 EPS. The company's revenue for the quarter was up 2.7% compared to the same quarter last year. Equities analysts predict that Cummins Inc. will post 29.34 EPS for the current year.

Cummins Increases Dividend

The company also recently disclosed 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 represents a $8.80 annualized dividend and a yield of 1.4%. The ex-dividend date of this dividend is Friday, August 21st. This is a positive change from Cummins's previous quarterly dividend of $2.00. Cummins's payout ratio is presently 41.52%.

Key Stories Impacting Cummins

Here are the key news stories impacting Cummins this week:

• Positive Sentiment: Morgan Stanley boosted its price target on Cummins and kept an overweight rating, signaling confidence in further upside. Benzinga
• Neutral Sentiment: Zacks Research slightly raised its Q3 2027 EPS estimate for Cummins to $9.02 from $9.00, a small change that suggests stable longer-term expectations. Article
• Neutral Sentiment: Other Zacks revisions were mixed but generally small, with slight cuts to some FY2027/FY2028 estimates and a continued Hold rating, suggesting analysts are not seeing a major near-term change in fundamentals. Article

Wall Street Analysts Forecast Growth

CMI has been the subject of several recent analyst reports. Raymond James Financial upped their price objective on shares of Cummins from $675.00 to $745.00 and gave the company an "outperform" rating in a research note on Tuesday, May 26th. Argus raised their target price on Cummins from $696.00 to $770.00 and gave the stock a "buy" rating in a research note on Monday, June 1st. Wells Fargo & Company boosted their price target on Cummins from $794.00 to $874.00 and gave the company an "overweight" rating in a report on Wednesday, June 17th. Citigroup upped their price target on Cummins from $770.00 to $790.00 and gave the company a "buy" rating in a research report on Tuesday, July 14th. Finally, Robert W. Baird set a $700.00 price objective on Cummins in a report on Wednesday, May 6th. Eleven equities research analysts have rated the stock with a Buy rating and four have issued a Hold rating to the stock. According to data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $740.07.

Insider Activity

In other Cummins news, CAO Nicole Lamb-Hale sold 2,408 shares of the stock in a transaction on Friday, May 8th. The stock was sold at an average price of $685.34, for a total value of $1,650,298.72. Following the completion of the transaction, the chief accounting officer owned 14,084 shares in the company, valued at approximately $9,652,328.56. This represents a 14.60% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, VP Jennifer Mary Bush sold 5,000 shares of the firm's stock in a transaction on Tuesday, May 12th. The shares were sold at an average price of $696.21, for a total value of $3,481,050.00. Following the transaction, the vice president directly owned 11,986 shares of the company's stock, valued at $8,344,773.06. This represents a 29.44% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders have sold 13,579 shares of company stock worth $9,377,684. Company insiders own 0.30% of the company's stock.

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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