Insider Trading February 23, 2026

Cummins CIO Disposes $758,776 of Stock in Late-February Sale

Earl Newsome sells 1,300 shares across two price bands; company posts strong quarterly results and declares March dividend

By Priya Menon CMI
Cummins CIO Disposes $758,776 of Stock in Late-February Sale
CMI

Earl Newsome, vice president and Chief Information Officer at Cummins Inc. (CMI), executed a sale of 1,300 company shares on February 23, 2026, generating proceeds of $758,776. The transaction, detailed on an SEC Form 4 filing, comprised two tranches executed at average prices of $584.4321 and $583.522. The sale leaves Newsome with 3,389 Cummins shares directly held. The insider move coincides with a year-to-date market rally and recent corporate updates including quarterly results that beat estimates and a $2.00 quarterly cash dividend declared for March 5, 2026.

Key Points

  • Earl Newsome, Cummins VP and CIO, sold 1,300 shares on February 23, 2026, generating $758,776 in proceeds.
  • Cummins reported adjusted Q4 EPS of $5.81, beating estimates by 14%, and EBITDA of $1.4 billion, 2% above forecasts; the company also declared a $2.00 quarterly dividend payable March 5, 2026.
  • Analyst reactions included multiple target revisions: Truist $703 (Buy), Raymond James $675 (Buy), UBS $565 (Neutral), Bernstein SocGen $600 (Market Perform).

Earl Newsome, who serves as vice president and Chief Information Officer at Cummins Inc. (NYSE: CMI), reported the disposition of 1,300 shares of company stock on February 23, 2026, according to a Form 4 filing with the Securities and Exchange Commission.

The sales occurred in two distinct groups. Newsome sold 217 shares at a weighted average price of $584.4321 per share, with the individual trade prices in that block ranging from $584.08 to $584.60. In a separate tranche, he sold 1,083 shares at a weighted average of $583.522 per share, with transaction prices between $583.01 and $583.8650. Aggregate proceeds from the combined sales totaled $758,776.

After completing these transactions, Newsome retains direct ownership of 3,389 Cummins shares.


Market context provided in the filing noted that Cummins shares have climbed 66% over the last twelve months and were trading at $587.36 at the time of the report. An analysis cited in the filing, attributed to InvestingPro, characterizes the stock as appearing overvalued relative to its Fair Value and places it among the more overvalued names in the market. The filing also highlights the company’s record of raising its dividend for 20 consecutive years.

Corporate actions announced around the same time include a quarterly cash dividend of $2.00 per share, payable March 5, 2026, to shareholders of record as of February 20, 2026.

Financial results disclosed by the company showed adjusted earnings per share of $5.81 for the fourth quarter, representing a 14% beat versus analyst expectations. Cummins reported an EBITDA of $1.4 billion for the quarter, which was 2% above consensus estimates.

Following the earnings release, a number of brokerages revised their price targets and maintained or adjusted ratings. Truist Securities raised its price target to $703 while keeping a Buy rating. Raymond James increased its target to $675 and cited growth drivers such as a cyclical recovery in North American markets and expansion in global data center demand. UBS moved its price target to $565 while maintaining a Neutral rating, based on a price-to-earnings multiple applied to estimated 2027 earnings. Bernstein SocGen Group raised its target to $600 and retained a Market Perform rating. These changes were presented as responses to the company’s reported results.


Investors reviewing the Form 4 filing will see the precise breakdown of the two executed tranches and Newsome’s resulting direct holdings. The transactions were reported in line with SEC disclosure requirements and included the exact per-share ranges and weighted averages for each block sold.

Because the filing and accompanying commentary contain limited forward-looking detail, readers should consider the data as transaction and results reporting rather than an indication of future operational or market performance beyond the figures and analyst reactions disclosed.

Risks

  • Valuation concern - InvestingPro analysis cited in the filing indicates Cummins appears overvalued relative to its Fair Value, which may affect investor expectations and market reaction.
  • Market sensitivity - The company’s stock has risen 66% over the past year, which can increase volatility and make future corrections impactful for shareholders.
  • Analyst divergence - While several firms raised price targets, ratings and targets vary, reflecting differing views on growth catalysts and valuation, which can introduce uncertainty for investors.

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