Cummins Inc. (NYSE:CMI) Declares $1.82 Quarterly Dividend

Cummins Inc. (NYSE:CMI) announced a quarterly dividend on Tuesday, February 11th,RTT News reports. Stockholders of record on Friday, February 21st will be given a dividend of 1.82 per share on Thursday, March 6th. This represents a $7.28 annualized dividend and a dividend yield of 1.96%.

Cummins has increased its dividend by an average of 7.7% per year over the last three years. Cummins has a dividend payout ratio of 27.5% indicating that its dividend is sufficiently covered by earnings. Equities analysts expect Cummins to earn $27.53 per share next year, which means the company should continue to be able to cover its $7.28 annual dividend with an expected future payout ratio of 26.4%.

Cummins Stock Down 0.4 %

Cummins stock traded down $1.53 during midday trading on Tuesday, reaching $372.38. The company’s stock had a trading volume of 580,070 shares, compared to its average volume of 848,749. The business has a 50-day simple moving average of $361.74 and a 200-day simple moving average of $337.16. The company has a market cap of $51.08 billion, a P/E ratio of 13.22, a P/E/G ratio of 2.10 and a beta of 1.00. Cummins has a fifty-two week low of $250.90 and a fifty-two week high of $387.90. The company has a quick ratio of 0.79, a current ratio of 1.31 and a debt-to-equity ratio of 0.42.

Cummins (NYSE:CMI) last issued its earnings results on Tuesday, February 4th. The company reported $5.16 earnings per share for the quarter, topping the consensus estimate of $4.70 by $0.46. The business had revenue of $8.45 billion for the quarter, compared to analyst estimates of $8.06 billion. Cummins had a return on equity of 27.12% and a net margin of 11.57%. The business’s quarterly revenue was down 1.1% on a year-over-year basis. During the same quarter last year, the company earned $4.14 EPS. On average, research analysts expect that Cummins will post 22.57 earnings per share for the current fiscal year.

Analysts Set New Price Targets

CMI has been the topic of several research analyst reports. Robert W. Baird lifted their price target on shares of Cummins from $395.00 to $407.00 and gave the stock a “neutral” rating in a research note on Wednesday, February 5th. The Goldman Sachs Group lifted their target price on shares of Cummins from $324.00 to $370.00 and gave the company a “neutral” rating in a report on Wednesday, November 6th. Bank of America upgraded Cummins from an “underperform” rating to a “neutral” rating and increased their price objective for the stock from $354.00 to $358.00 in a research report on Tuesday, January 14th. StockNews.com downgraded shares of Cummins from a “strong-buy” rating to a “buy” rating in a research report on Thursday, February 6th. Finally, Vertical Research lowered shares of Cummins from a “buy” rating to a “hold” rating and set a $350.00 price objective on the stock. in a research report on Wednesday, November 6th. Eight investment analysts have rated the stock with a hold rating and six have given a buy rating to the company. According to data from MarketBeat.com, the stock presently has a consensus rating of “Hold” and an average target price of $383.08.

Insider Buying and Selling at Cummins

In related news, VP Sharon R. Barner sold 2,163 shares of the company’s stock in a transaction that occurred on Wednesday, November 13th. The shares were sold at an average price of $362.49, for a total transaction of $784,065.87. Following the completion of the transaction, the vice president now owns 20,803 shares of the company’s stock, valued at approximately $7,540,879.47. This represents a 9.42 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. In the last three months, insiders sold 4,327 shares of company stock worth $1,582,821. Insiders own 0.56% of the company’s stock.

About Cummins

Cummins Inc designs, manufactures, distributes, and services diesel and natural gas engines, electric and hybrid powertrains, and related components worldwide. It operates through five segments: Engine, Distribution, Components, Power Systems, and Accelera. The company offers diesel and natural gas-powered engines under the Cummins and other customer brands for the heavy and medium-duty truck, bus, recreational vehicle, light-duty automotive, construction, mining, marine, rail, oil and gas, defense, and agricultural markets; and offers parts and services, as well as remanufactured parts and engines.