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

Cummins Inc. (NYSE:CMI) declared a quarterly dividend on Tuesday, October 15th,RTT News reports. Investors of record on Friday, November 22nd will be paid a dividend of 1.82 per share on Thursday, December 5th. This represents a $7.28 annualized dividend and a yield of 2.02%. The ex-dividend date is Friday, November 22nd.

Cummins has increased its dividend payment by an average of 7.2% per year over the last three years and has increased its dividend every year for the last 19 years. Cummins has a payout ratio of 33.1% meaning its dividend is sufficiently covered by earnings. Equities research analysts expect Cummins to earn $22.10 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 32.9%.

Cummins Stock Down 0.3 %

Cummins stock opened at $360.95 on Thursday. The company has a market capitalization of $49.52 billion, a P/E ratio of 23.84, a P/E/G ratio of 1.77 and a beta of 0.97. Cummins has a 1-year low of $220.02 and a 1-year high of $370.21. The firm’s fifty day simple moving average is $332.94 and its 200-day simple moving average is $303.34. The company has a current ratio of 1.32, a quick ratio of 0.79 and a debt-to-equity ratio of 0.43.

Cummins (NYSE:CMI) last announced its quarterly earnings results on Tuesday, November 5th. The company reported $5.86 earnings per share for the quarter, topping analysts’ consensus estimates of $4.89 by $0.97. The company had revenue of $8.46 billion during the quarter, compared to analysts’ expectations of $8.29 billion. Cummins had a return on equity of 26.86% and a net margin of 6.13%. The business’s quarterly revenue was up .3% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $4.73 earnings per share. Sell-side analysts forecast that Cummins will post 20.57 earnings per share for the current fiscal year.

Insider Transactions at Cummins

In other Cummins news, VP Sharon R. Barner sold 2,163 shares of the stock in a transaction dated Wednesday, November 13th. The stock was sold at an average price of $362.49, for a total value of $784,065.87. Following the completion of the sale, the vice president now directly owns 20,803 shares in the company, valued at $7,540,879.47. This represents a 9.42 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, SVP Tony Satterthwaite sold 24,250 shares of Cummins stock in a transaction that occurred on Friday, August 23rd. The shares were sold at an average price of $308.24, for a total transaction of $7,474,820.00. Following the completion of the transaction, the senior vice president now directly owns 77,442 shares in the company, valued at approximately $23,870,722.08. The trade was a 23.85 % decrease in their position. The disclosure for this sale can be found here. In the last ninety days, insiders sold 28,576 shares of company stock worth $9,033,945. 0.56% of the stock is currently owned by company insiders.

Wall Street Analyst Weigh In

A number of equities analysts have recently commented on CMI shares. StockNews.com raised shares of Cummins from a “buy” rating to a “strong-buy” rating in a research report on Wednesday, November 6th. Robert W. Baird upped their price target on shares of Cummins from $330.00 to $372.00 and gave the company a “neutral” rating in a report on Wednesday, November 6th. The Goldman Sachs Group lifted their price objective on Cummins from $324.00 to $370.00 and gave the stock a “neutral” rating in a research note on Wednesday, November 6th. Evercore ISI upgraded Cummins from an “in-line” rating to an “outperform” rating and increased their target price for the company from $294.00 to $408.00 in a research note on Wednesday, November 13th. Finally, JPMorgan Chase & Co. lifted their price target on Cummins from $285.00 to $340.00 and gave the stock an “underweight” rating in a research report on Friday, October 11th. Two equities research analysts have rated the stock with a sell rating, six have given a hold rating, five have issued a buy rating and one has issued a strong buy rating to the company’s stock. Based on data from MarketBeat, the company currently has an average rating of “Hold” and an average target price of $337.67.

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.