Institutional Ownership Trends
Institutional ownership in Cummins Inc. (CMI) stands at 84.13%, indicating a significant level of institutional interest. Over the last four quarters, institutional ownership has decreased by 2.57 percentage points. The company is currently held by 1,711 institutional investors. While the ownership level is high, it is not above the 90% threshold that would suggest extreme float constraint, nor is it below the 40% threshold indicating light institutional holding. The recent trend shows a modest reduction in institutional positioning.
Ownership Overview
| Company | Current Own% | 4Q Change | Direction | Investors | Consecutive Increases | Consecutive Decreases |
|---|---|---|---|---|---|---|
| CMI | 84.13% | -2.57pp | stable | 1711 | 1 | 0 |
Company Assessments
Cummins Inc. exhibits high institutional ownership at 84.13%, though this represents a 2.57 percentage point decrease over the past four quarters. This suggests a slight net distribution by institutions, despite the overall high level of engagement. The company is held by a substantial base of 1,711 institutional investors, indicating broad, albeit recently tempered, institutional interest.
Position Flow Analysis
Institutional position flow dynamics for Cummins Inc. indicate a period of mild net accumulation. The aggregate flow ratio of 1.45 signifies that institutions are initiating or increasing positions at a higher rate than they are reducing or exiting. This trend is further supported by a positive net flow of 313 institutions. The conviction ratio of 0.57 suggests a neutral stance from existing holders, implying that the overall accumulation is driven more by new entrants or modest additions rather than significant increases in conviction from established positions.
Position Flow Metrics
| Company | Flow Ratio | Conviction | Classification | Net Flow |
|---|---|---|---|---|
| CMI | 1.45 | 0.57 | mild accumulation | 313 |
Company Assessments
Cummins Inc. exhibits mild institutional accumulation, evidenced by a flow ratio of 1.45. This indicates a net inflow of institutional capital, with 313 more institutions initiating or increasing positions than reducing or exiting. The conviction ratio of 0.57 suggests that existing holders are maintaining a relatively stable position, neither aggressively adding nor significantly trimming, implying that new position initiation is a notable component of the observed accumulation.
Float & Options Context
Cummins Inc. (CMI) exhibits a notable institutional ownership profile, with 84.13% of its shares held by institutional investors. This high concentration results in an estimated free float of 15.87%, which, while classified as moderate, is just above the 15% threshold typically associated with a constrained float. Such a structure implies that even modest shifts in demand could potentially exert outsized influence on share price dynamics due to limited liquidity in the open market. Concurrently, options market positioning reflects a net constructive sentiment, evidenced by a put/call ratio of 0.67. This ratio, being below 1.0 and stable, indicates a prevalence of call options over put options, suggesting that options participants are not significantly hedging against downside risk or positioning for a decline in the underlying shares.
Float & Options Overview
| Company | Put/Call Ratio | P/C Direction | Institutional % | Est. Free Float | Float Class |
|---|---|---|---|---|---|
| CMI | 0.67 | stable | 84.13% | 15.87% | moderate |
Company Assessments
For Cummins Inc. (CMI), the estimated free float of 15.87% is approaching the constrained float threshold, indicating that high institutional ownership (84.13%) significantly limits the supply of publicly traded shares. This tight float could amplify price volatility in response to buying or selling pressure. The stable put/call ratio of 0.67, below the 1.0 threshold, suggests a net constructive options market sentiment, with more call options outstanding than put options, implying limited hedging or bearish positioning among options traders.
Insider Trading Patterns
Insider trading activity for Cummins Inc. (CMI) over the past 12 months indicates a significant prevalence of selling relative to buying. There was only 1 insider buy transaction totaling $332,080, contrasted with 55 sell transactions amounting to $47,139,735. This results in a buy/sell ratio (value) of 0.01 and a buy/sell ratio (count) of 0.02, both well below the threshold of 0.2 that would signal even moderate buying. The top three sell transactions alone accounted for over $11 million, involving a director and two senior officers. Historically, the post-buy success rate (30-day) for insider purchases over $100K is 0.0%, with an average 30-day post-buy return of -2.4%, suggesting that the few insider buys have not been well-timed.
Insider Activity Summary
| Company | Buys (12M) | Buy Value | Sells (12M) | Sell Value | B/S Ratio (Value) | Post-Buy Success |
|---|---|---|---|---|---|---|
| CMI | 1 | $332,080 | 55 | $47,139,735 | 0.01 | 0.0% |
Top Transactions — CMI
| Date | Insider | Role | Type | Shares | Value |
|---|---|---|---|---|---|
| 2026-02-11 | MILLER WILLIAM I | director | Sell | 7,066 | $4,221,228 |
| 2024-08-23 | Satterthwaite Tony | officer: Senior Vice President | Sell | 11,876 | $3,660,537 |
| 2025-10-06 | Smith Mark Andrew | officer: VP - Chief Financial Officer | Sell | 8,000 | $3,514,402 |
| 2025-08-13 | Smith Mark Andrew | officer: VP - Chief Financial Officer | Sell | 6,500 | $2,632,500 |
| 2025-11-06 | Smith Mark Andrew | officer: VP - Chief Financial Officer | Sell | 5,310 | $2,481,735 |
Post-Buy Returns — CMI
Insider purchases > $100K with subsequent return data. Success rate (30d): 0.0% | Avg 30d return: -2.4%
| Insider | Date | Value | 30d Return | 60d Return | 90d Return |
|---|---|---|---|---|---|
| Stone John H | 2025-05-16 | $332,080 | -3.09% | 2.81% | 21.71% |
| Boakye Marvin | 2024-05-20 | $499,133 | -1.72% | 2.82% | 6.41% |
Company Assessments
Insider activity for Cummins Inc. (CMI) over the last 12 months is characterized by overwhelmingly net selling, with a buy/sell value ratio of 0.01. The selling activity, totaling over $47 million across 55 transactions, included significant sales from a director and senior officers. Given the high volume of selling and the low post-buy success rate of 0.0%, there is no constructive signal from insider trading to support a bullish thesis at this time, though much of the selling could be compensation-related.
Summary
The overall smart money picture for Cummins Inc. (CMI) presents a notable divergence between institutional activity and insider actions. Institutional ownership remains substantial at 84.13%, indicating a high level of professional investor engagement with the company. While the aggregate institutional ownership percentage experienced a slight decrease of 2.57 percentage points over the last four quarters, the 'mild accumulation' flow class suggests that a greater number of institutions are initiating or increasing positions than those reducing or exiting, albeit potentially with smaller average position sizes or a rebalancing among existing large holders. The conviction score of 0.57 indicates moderate conviction among institutional investors, aligning with the 'mild accumulation' signal.
Smart Money Dashboard
| Company | Own% | 4Q Chg | Flow | Conviction | P/C Ratio | Insider B/S | Flag |
|---|---|---|---|---|---|---|---|
| CMI | 84.13% | -2.57pp | mild accumulation | 0.57 | 0.67 | 0.01 | Institutional accumulation but insiders selling |
Convergence / Divergence Flags
Key Takeaways
- A significant divergence exists between institutional activity and insider actions for CMI, with institutions exhibiting mild accumulation while insiders are net sellers.
- Despite a 2.57 percentage point reduction in overall institutional ownership over four quarters, the 'mild accumulation' flow class suggests a broader base of institutions are establishing or increasing positions.
- The extremely low insider Buy/Sell ratio of 0.01 is a strong signal of net insider selling, warranting careful consideration given insiders' proximity to company fundamentals.
- The moderate institutional conviction score of 0.57 aligns with the 'mild accumulation' trend, indicating a balanced but not overwhelmingly strong institutional endorsement.
- The Put/Call ratio of 0.67 points towards a predominantly bullish sentiment in the options market for CMI, which contrasts with the insider selling but aligns more closely with the mild institutional accumulation.
Company Assessments
Cummins Inc. exhibits high institutional ownership at 84.13% with a mild accumulation trend despite a slight aggregate ownership percentage decline over four quarters. This institutional interest is juxtaposed against a strong signal of insider selling, evidenced by a very low Buy/Sell ratio of 0.01, indicating significant net insider divestment. This divergence suggests a cautious stance from those with the most intimate knowledge of the company's operations, even as the broader institutional base shows some level of continued interest, and the Put/Call ratio of 0.67 indicates a more bullish sentiment in the options market.