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

Cummins Inc. (NYSE:CMI) announced a quarterly dividend on Tuesday, February 11th,RTT News reports. Shareholders of record on Friday, February 21st will be paid 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 2.00%. The ex-dividend date is Friday, February 21st.

Cummins has increased its dividend payment by an average of 7.7% annually over the last three years. Cummins has a payout ratio of 27.5% indicating that its dividend is sufficiently covered by earnings. Equities research 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 Performance

NYSE CMI opened at $364.08 on Thursday. The company’s 50-day simple moving average is $361.68 and its 200 day simple moving average is $337.74. The company has a quick ratio of 0.79, a current ratio of 1.31 and a debt-to-equity ratio of 0.42. The stock has a market cap of $49.94 billion, a P/E ratio of 12.92, a PEG ratio of 2.10 and a beta of 1.00. Cummins has a twelve month low of $250.90 and a twelve month high of $387.90.

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

Analysts Set New Price Targets

Several equities research analysts have recently commented on CMI shares. Evercore ISI upgraded shares of Cummins from an “in-line” rating to an “outperform” rating and lifted their price target for the stock from $294.00 to $408.00 in a research report on Wednesday, November 13th. Barclays lifted their target price on shares of Cummins from $310.00 to $381.00 and gave the stock an “equal weight” rating in a report on Wednesday, February 5th. The Goldman Sachs Group increased their price target on Cummins from $324.00 to $370.00 and gave the company a “neutral” rating in a research note on Wednesday, November 6th. JPMorgan Chase & Co. raised Cummins from an “underweight” rating to a “neutral” rating and lifted their price objective for the stock from $355.00 to $420.00 in a research note on Monday, December 9th. Finally, Vertical Research lowered Cummins from a “buy” rating to a “hold” rating and set a $350.00 target price on the stock. in a research note on Wednesday, November 6th. Eight research analysts have rated the stock with a hold rating and six have given a buy rating to the company’s stock. According to MarketBeat, the company has a consensus rating of “Hold” and a consensus target price of $383.08.

Insider Buying and Selling at Cummins

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

Cummins Company Profile

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.