LSV Asset Management Reduces Stock Holdings in Cummins Inc. $CMI

Key Points

• LSV Asset Management cut its Cummins stake by 32.5% in the fourth quarter, selling 251,243 shares and leaving it with 522,030 shares worth about $266.5 million.
• Cummins posted better-than-expected quarterly results, earning $6.15 per share on revenue of $8.40 billion, both slightly above analyst estimates, while revenue rose 2.7% year over year.
• The company maintained a shareholder-friendly dividend and positive analyst sentiment, announcing a $2.00 quarterly dividend and retaining a “Moderate Buy” consensus rating with an average price target of $677.87.

LSV Asset Management reduced its stake in Cummins Inc. (NYSE:CMI - Free Report) by 32.5% during the 4th quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 522,030 shares of the company's stock after selling 251,243 shares during the period. LSV Asset Management owned 0.38% of Cummins worth $266,470,000 as of its most recent SEC filing.

Several other hedge funds also recently added to or reduced their stakes in CMI. Northwestern Mutual Wealth Management Co. increased its stake in Cummins by 10,317.7% in the fourth 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. Boston Partners purchased a new position in Cummins in the third quarter valued at approximately $473,471,000. London Co. of Virginia purchased a new position in shares of Cummins during the third quarter worth approximately $231,732,000. Bank of New York Mellon Corp grew its position in shares of Cummins by 50.8% during the third quarter. Bank of New York Mellon Corp now owns 1,450,659 shares of the company's stock worth $612,715,000 after acquiring an additional 488,430 shares during the last quarter. Finally, Nordea Investment Management AB grew its position in shares of Cummins by 103.8% during the fourth quarter. Nordea Investment Management AB now owns 546,540 shares of the company's stock worth $280,397,000 after acquiring an additional 278,350 shares during the last quarter. 83.46% of the stock is currently owned by hedge funds and other institutional investors.

Cummins Stock Performance

Shares of CMI opened at $640.41 on Friday. The company has a debt-to-equity ratio of 0.50, a quick ratio of 1.11 and a current ratio of 1.71. The stock has a market capitalization of $88.37 billion, a P/E ratio of 33.23, a P/E/G ratio of 1.58 and a beta of 1.27. The company's fifty day moving average is $612.02 and its two-hundred day moving average is $562.53. Cummins Inc. has a 1 year low of $307.90 and a 1 year high of $718.08.

Cummins (NYSE:CMI - Get Free Report) last announced its quarterly earnings data on Tuesday, May 5th. The company reported $6.15 earnings per share (EPS) for the quarter, beating the consensus estimate of $5.63 by $0.52. The company had revenue of $8.40 billion for the quarter, compared to analysts' expectations of $8.37 billion. Cummins had a net margin of 7.89% and a return on equity of 25.25%. Cummins's revenue was up 2.7% compared to the same quarter last year. During the same period in the previous year, the company posted $5.96 EPS. On average, sell-side analysts predict that Cummins Inc. will post 28.93 earnings per share for the current year.

Cummins Dividend Announcement

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

Analyst Upgrades and Downgrades

CMI has been the topic of a number of research reports. Wall Street Zen lowered shares of Cummins from a "strong-buy" rating to a "buy" rating in a research report on Sunday, March 8th. Argus set a $696.00 target price on shares of Cummins in a research report on Tuesday, February 10th. Weiss Ratings lowered shares of Cummins from a "buy (b)" rating to a "buy (b-)" rating in a research report on Wednesday, May 6th. Evercore restated an "outperform" rating and set a $845.00 target price on shares of Cummins in a research report on Monday, May 11th. Finally, Wells Fargo & Company raised their target price on shares of Cummins from $693.00 to $794.00 and gave the stock an "overweight" rating in a research report on Wednesday, May 6th. One equities research analyst has rated the stock with a Strong Buy rating, eleven have given a Buy rating and five have assigned a Hold rating to the stock. According to data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average price target of $677.87.

More Cummins News

Here are the key news stories impacting Cummins this week:

• Positive Sentiment: Zacks Research raised multiple earnings forecasts for Cummins, including FY2026 to $29.28 per share, FY2027 to $31.73, and FY2028 to $35.32, while maintaining a Strong-Buy rating. Cummins stock page
• Positive Sentiment: The analyst also lifted near-term quarterly estimates across 2026 and 2027, suggesting expectations for sustained earnings momentum rather than a one-quarter boost. Cummins stock page
• Positive Sentiment: At its investor day, Cummins said it is raising its 2030 financial targets and announced large-engine capacity and product investments, signaling confidence in future growth and profitability. Business Wire article
• Positive Sentiment: Coverage of the investor event also highlighted how Cummins is positioning itself for opportunities tied to the AI boom, which may have helped sentiment around the stock. Barron’s article

Insider Buying and Selling

In other Cummins news, CAO Nicole Lamb-Hale sold 2,408 shares of the business's stock in a transaction on Friday, May 8th. The shares were sold at an average price of $685.34, for a total value of $1,650,298.72. Following the transaction, the chief accounting officer directly owned 14,084 shares of the company's stock, valued at approximately $9,652,328.56. The trade was a 14.60% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, VP Amy Rochelle Davis sold 4,054 shares of the business's stock in a transaction on Tuesday, March 3rd. The shares were sold at an average price of $561.34, for a total transaction of $2,275,672.36. Following the completion of the transaction, the vice president directly owned 15,807 shares in the company, valued at $8,873,101.38. This represents a 20.41% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 22,397 shares of company stock worth $14,465,833 in the last ninety days. Insiders own 0.30% of the company's stock.

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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