AQR Capital Management LLC, a major institutional investor, has reduced its stake in Cummins Inc. (NYSE: CMI) by 7.3%, according to Q4 filings recently submitted to the U.S. Securities and Exchange Commission (SEC). The firm offloaded 46,884 shares, leaving it with approximately 598,079 shares, valued at $208.49 million as of the end of 2024.
Other asset managers also appear to be recalibrating:
- Virtus ETF Advisers LLC reduced exposure slightly, despite a 12.8% increase in position.
- Lido Advisors LLC made modest adjustments, acquiring only 597 additional shares during the same period.
- Bellwether Advisors LLC and Susquehanna Fundamental Investments LLC initiated small, speculative positions — possibly signalling caution rather than confidence.
While institutional ownership remains high overall (83.46%), shifts among top holders come at a time when Cummins faces:
- Flat year-over-year revenue performance
- Multiple analyst downgrades
- A stock price now trading below both its 50-day and 200-day moving averages
- A broader reputational drag due to unresolved controversies
Cummins’ Q4 earnings beat expectations slightly, but were delivered against a backdrop of a declining market cap and reduced analyst enthusiasm. Recent price targets from JPMorgan, Citigroup, and Robert W. Baird all revised downward, despite earlier optimism in Q1.
This shift in investor behaviour, while quiet, should not be ignored.
With litigation, public accountability concerns, and operational questions mounting, the company’s long-term direction may be entering a period of more intense scrutiny – from markets as well as the public.
Lee Thompson
Founder
Source: MarketBeat