Vaughan Nelson Investment Management, L.P. Adds $175M in Cummins Inc. ($CMI)

Vaughan Nelson Investment Management recently made a substantial increase in its holdings of Cummins Inc. (NYSE:CMI). According to its latest 13F filing with the SEC, the firm boosted its position by 9112%, adding 265,608 shares, bringing its total to 268,523 shares. The total value of this stake is approximately $177.7 million as of the filing date.

What Changed in Vaughan Nelson's Cummins Position

Vaughan Nelson's latest move in Cummins marks a significant increase in its investment. Previously holding just 2,915 shares, the firm now owns 268,523 shares, a dramatic addition of 265,608 shares. This move reflects a strong vote of confidence in Cummins, with the total value of the holdings reaching $177.7 million.

Other Institutional Activity in Cummins

Other institutional investors have also been active in Cummins. BlackRock increased its holdings by 33,188 shares, bringing its total to over 11.8 million shares worth about $6.37 billion. State Street Corp added 297,838 shares, ending with approximately 6.8 million shares valued at $3.66 billion. Meanwhile, FMR LLC reduced its stake by 220,933 shares, leaving it with about 5.4 million shares worth $2.92 billion.

Cummins Stock Snapshot

Shares of Cummins Inc. (NYSE:CMI) are trading near $661.73. The company has a market capitalization of $91 billion and a P/E ratio of 34.25. Cummins' stock has fluctuated between a 52-week low of $307.90 and a high of $718.08. The stock's 50-day moving average is $650.99, while the 200-day moving average is $536.88. The company's beta is 1.24, indicating moderate volatility compared to the market.

Recent Earnings

Cummins reported revenue of $33.89 billion, with a modest growth rate of 2.7%. The company's net margin is 7.89%, and it has a return on equity of 21.99%. Investors are looking forward to Cummins' next earnings release on May 5, 2026.

Dividend

Cummins offers an annual dividend rate of $8.00, yielding 1.21%. The dividend payout ratio is 40.62%, indicating a balanced approach to returning capital to shareholders.

Insider Buying and Selling at Cummins Inc.

Recent insider activity at Cummins includes several sales and purchases. On May 19, 2026, Merritt Brett Michael, Vice President and President of the Engine Business, sold 218 shares. On May 14, 2026, Donald Jackson, VP of Treasury & Tax, sold 730 shares at an average price of $710.92. Meanwhile, on May 12, 2026, insiders Matthew Tsien and Karen Quintos each bought 306 shares.

Analysts Set New Price Targets

Analysts have generally maintained a positive outlook on Cummins. On June 8, 2026, UBS upgraded the stock to a 'buy' rating with a price target of $850. Argus Research, on June 1, 2026, maintained its 'buy' rating with a target of $770. The consensus among 19 analysts is a 'buy' rating, with a mean target price of $740.12.

About Cummins

Cummins Inc., headquartered in Columbus, Indiana, is a global leader in power solutions, offering a range of products from diesel and natural gas engines to power generation systems. The company operates through five segments: Engine, Distribution, Components, Power Systems, and Accelera. Led by CEO Jennifer W. Rumsey, Cummins employs approximately 67,400 people worldwide.

Bottom Line

Vaughan Nelson's substantial increase in its Cummins holdings reflects a strong belief in the company's potential. Investors often track such movements to gauge market sentiment. However, it's important to remember that 13F filings are historical and may not reflect current positions. Cummins continues to attract attention with solid fundamentals and positive analyst sentiment.