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

Cummins Inc. (NYSE:CMI) declared 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 dividend on an annualized basis and a dividend yield of 1.98%.

Cummins has raised its dividend payment 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. 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 Trading Down 1.3 %

Shares of CMI opened at $367.83 on Wednesday. The stock has a market capitalization of $50.46 billion, a PE ratio of 13.07, a P/E/G ratio of 2.10 and a beta of 1.00. The company’s fifty day moving average is $361.68 and its 200 day moving average is $337.74. The company has a debt-to-equity ratio of 0.42, a quick ratio of 0.79 and a current ratio of 1.31. Cummins has a fifty-two week low of $250.90 and a fifty-two week high of $387.90.

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

Wall Street Analysts Forecast Growth

CMI has been the subject of several analyst reports. Robert W. Baird raised their price objective on Cummins from $395.00 to $407.00 and gave the company a “neutral” rating in a research note on Wednesday, February 5th. Citigroup lowered their price target on Cummins from $435.00 to $430.00 and set a “buy” rating for the company in a research report on Tuesday, January 14th. Vertical Research cut 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. Evercore ISI upgraded shares of Cummins from an “in-line” rating to an “outperform” rating and raised their target price for the stock from $294.00 to $408.00 in a report on Wednesday, November 13th. Finally, StockNews.com cut shares of Cummins from a “strong-buy” rating to a “buy” rating in a research note on Thursday, February 6th. Eight equities research analysts have rated the stock with a hold rating and six have issued a buy rating to the stock. According to MarketBeat, the stock has a consensus rating of “Hold” and an average price target of $383.08.

Insider Activity at Cummins

In related news, VP Sharon R. Barner sold 2,163 shares of the company’s stock in a transaction dated Thursday, November 21st. The shares were sold at an average price of $369.12, for a total value of $798,406.56. Following the completion of the sale, the vice president now directly owns 20,803 shares of the company’s stock, valued at $7,678,803.36. This represents a 9.42 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. 0.56% of the stock is owned by company insiders.

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.