Magnolia Capital Advisors LLC Acquires New Position in Cummins Inc. $CMI

Magnolia Capital Advisors LLC bought a new position in shares of Cummins Inc. (NYSE:CMI) during the second quarter, HoldingsChannel.com reports. The firm bought 2,330 shares of the company’s stock, valued at approximately $1,662,000.

Other hedge funds and other institutional investors have also recently bought and sold shares of the company. Activest Wealth Management lifted its stake in shares of Cummins by 537.5% during the 4th quarter. Activest Wealth Management now owns 51 shares of the company’s stock worth $26,000 after purchasing an additional 43 shares during the period. Cedar Mountain Advisors LLC boosted its holdings in shares of Cummins by 1,500.0% during the first quarter. Cedar Mountain Advisors LLC now owns 48 shares of the company’s stock worth $26,000 after purchasing an additional 45 shares during the last quarter. Persistent Asset Partners Ltd purchased a new stake in shares of Cummins in the second quarter valued at $26,000. Wellington Shields Capital Management LLC acquired a new position in Cummins in the fourth quarter valued at $27,000. Finally, Key Financial Inc increased its stake in Cummins by 62.5% in the first quarter. Key Financial Inc now owns 52 shares of the company’s stock valued at $28,000 after purchasing an additional 20 shares during the last quarter. 83.46% of the stock is owned by hedge funds and other institutional investors.

Cummins Stock Performance

Shares of CMI stock opened at $578.41 on Thursday. The company’s fifty day simple moving average is $653.34 and its 200-day simple moving average is $628.37. Cummins Inc. has a 52 week low of $389.52 and a 52 week high of $737.76. The company has a current ratio of 1.73, a quick ratio of 1.13 and a debt-to-equity ratio of 0.48. The company has a market cap of $79.62 billion, a PE ratio of 29.56, a P/E/G ratio of 1.36 and a beta of 1.24.

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

Cummins Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, September 3rd. Stockholders of record on Friday, August 21st will be given a $2.20 dividend. 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. This represents a $8.80 annualized dividend and a dividend yield of 1.5%. Cummins’s dividend payout ratio (DPR) is currently 44.97%.

Insider Buying and Selling at Cummins

In other news, VP Earl Newsome sold 698 shares of the stock in a transaction dated 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 owned 4,479 shares in the company, valued at approximately $2,562,973.38. This trade represents a 13.48% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. 0.30% of the stock is owned by insiders.

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.

Analyst Upgrades and Downgrades

A number of brokerages have issued reports on CMI. CICC Research initiated coverage on Cummins in a research note on Sunday. They issued an “outperform” rating on the stock. Evercore reaffirmed an “outperform” rating and set a $845.00 price objective on shares of Cummins in a research note on Monday, May 11th. Morgan Stanley increased their price objective on shares of Cummins from $752.00 to $761.00 and gave the stock an “overweight” rating in a report on Friday, July 17th. Truist Financial set a $894.00 target price on shares of Cummins in a research report on Wednesday, August 5th. Finally, UBS Group lowered their target price on shares of Cummins from $850.00 to $835.00 and set a “buy” rating for the company in a report on Wednesday, August 5th. Twelve equities research analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company’s stock. According to MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus target price of $745.64.

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.