Cummins Inc. (NYSE:CMI) to Issue $1.68 Quarterly Dividend

Cummins Inc. (NYSE:CMI) declared a quarterly dividend on Tuesday, May 14th, RTT News reports. Investors of record on Friday, May 24th will be given a dividend of 1.68 per share on Thursday, June 6th. This represents a $6.72 annualized dividend and a yield of 2.35%. The ex-dividend date of this dividend is Thursday, May 23rd.

Cummins has increased its dividend by an average of 7.2% per year over the last three years and has raised its dividend annually for the last 18 consecutive years. Cummins has a payout ratio of 31.1% meaning its dividend is sufficiently covered by earnings. Research analysts expect Cummins to earn $22.02 per share next year, which means the company should continue to be able to cover its $6.72 annual dividend with an expected future payout ratio of 30.5%.

Cummins Trading Up 0.0 %

NYSE CMI opened at $286.01 on Wednesday. Cummins has a one year low of $203.18 and a one year high of $304.24. The company’s 50 day moving average price is $290.22 and its 200 day moving average price is $258.92. The company has a debt-to-equity ratio of 0.57, a quick ratio of 0.84 and a current ratio of 1.34. The firm has a market capitalization of $39.12 billion, a price-to-earnings ratio of 20.93, a PEG ratio of 1.80 and a beta of 1.04.

Wall Street Analyst Weigh In

A number of analysts have recently issued reports on CMI shares. Citigroup lifted their price objective on shares of Cummins from $265.00 to $285.00 and gave the company a “buy” rating in a research note on Monday, February 12th. TD Cowen lifted their price target on shares of Cummins from $272.00 to $292.00 and gave the stock a “buy” rating in a research note on Friday, May 10th. UBS Group upgraded shares of Cummins from a “neutral” rating to a “buy” rating and lifted their price target for the stock from $254.00 to $321.00 in a research note on Friday, March 15th. StockNews.com upgraded shares of Cummins from a “hold” rating to a “buy” rating in a research note on Wednesday, May 8th. Finally, The Goldman Sachs Group lifted their price target on shares of Cummins from $270.00 to $306.00 and gave the stock a “neutral” rating in a research note on Tuesday, April 16th. Two equities research analysts have rated the stock with a sell rating, four have assigned a hold rating and six have given a buy rating to the stock. According to MarketBeat.com, the company presently has a consensus rating of “Hold” and an average target price of $284.36.

Insider Buying and Selling at Cummins

In other news, VP Sharon R. Barner sold 3,880 shares of the company’s stock in a transaction dated Tuesday, May 7th. The stock was sold at an average price of $286.86, for a total value of $1,113,016.80. Following the transaction, the vice president now owns 20,873 shares in the company, valued at approximately $5,987,628.78. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. In related news, VP Sharon R. Barner sold 3,880 shares of the stock in a transaction that occurred on Tuesday, May 7th. The stock was sold at an average price of $286.86, for a total value of $1,113,016.80. Following the transaction, the vice president now owns 20,873 shares in the company, valued at $5,987,628.78. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, VP Marvin Boakye acquired 1,745 shares of the company’s stock in a transaction that occurred on Monday, May 20th. The stock was purchased at an average price of $286.04 per share, for a total transaction of $499,139.80. Following the acquisition, the vice president now directly owns 1,745 shares of the company’s stock, valued at approximately $499,139.80. The disclosure for this purchase can be found here. 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.