Cummins Inc. (NYSE:CMI) Increases Dividend to $1.82 Per Share

Cummins Inc. (NYSE:CMI) announced a quarterly dividend on Tuesday, July 9th, RTT News reports. Investors of record on Friday, August 23rd will be given a dividend of 1.82 per share on Thursday, September 5th. This represents a $7.28 dividend on an annualized basis and a yield of 2.42%. The ex-dividend date of this dividend is Friday, August 23rd. This is an increase from Cummins’s previous quarterly dividend of $1.68.

Cummins has increased its dividend by an average of 7.2% per year over the last three years and has increased its dividend annually for the last 19 consecutive years. Cummins has a dividend payout ratio of 33.0% meaning its dividend is sufficiently covered by earnings. Equities analysts expect Cummins to earn $21.54 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 33.8%.

Cummins Stock Performance

Cummins stock opened at $300.55 on Wednesday. Cummins has a 12-month low of $212.80 and a 12-month high of $322.83. The stock has a 50-day simple moving average of $284.47 and a 200 day simple moving average of $281.73. The company has a quick ratio of 0.84, a current ratio of 1.34 and a debt-to-equity ratio of 0.51. The stock has a market capitalization of $41.11 billion, a price-to-earnings ratio of 22.00, a P/E/G ratio of 1.93 and a beta of 0.99.

Cummins (NYSE:CMI) last issued its quarterly earnings results on Thursday, August 1st. The company reported $5.26 earnings per share for the quarter, beating analysts’ consensus estimates of $4.85 by $0.41. The business had revenue of $8.80 billion during the quarter, compared to analyst estimates of $8.33 billion. Cummins had a net margin of 5.69% and a return on equity of 25.73%. Cummins’s revenue for the quarter was up 2.3% compared to the same quarter last year. During the same quarter last year, the business posted $5.18 earnings per share. On average, research analysts anticipate that Cummins will post 18.61 earnings per share for the current fiscal year.

Insider Activity at Cummins

In other news, VP Sharon R. Barner sold 4,780 shares of the business’s stock in a transaction on Thursday, August 15th. The shares were sold at an average price of $300.35, for a total value of $1,435,673.00. Following the sale, the vice president now owns 20,873 shares of the company’s stock, valued at $6,269,205.55. The sale was disclosed in a legal filing with the SEC, which is accessible through the SEC website. In related news, VP Sharon R. Barner sold 4,780 shares of Cummins stock in a transaction dated Thursday, August 15th. The stock was sold at an average price of $300.35, for a total value of $1,435,673.00. Following the sale, the vice president now owns 20,873 shares of the company’s stock, valued at $6,269,205.55. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, VP Jeffrey T. Wiltrout bought 282 shares of the company’s stock in a transaction that occurred on Friday, May 24th. The shares were bought at an average price of $285.11 per share, for a total transaction of $80,401.02. Following the acquisition, the vice president now directly owns 1,262 shares of the company’s stock, valued at approximately $359,808.82. The disclosure for this purchase can be found here. 0.56% of the stock is currently owned by insiders.

Analyst Ratings Changes

A number of research analysts have issued reports on the stock. Raymond James assumed coverage on shares of Cummins in a research report on Friday, June 28th. They set a “market perform” rating on the stock. JPMorgan Chase & Co. lifted their target price on shares of Cummins from $275.00 to $285.00 and gave the stock an “underweight” rating in a report on Friday, August 2nd. StockNews.com upgraded Cummins from a “hold” rating to a “buy” rating in a research report on Wednesday, May 8th. Truist Financial upped their price objective on Cummins from $315.00 to $349.00 and gave the company a “hold” rating in a report on Monday, August 5th. Finally, Evercore ISI raised their target price on Cummins from $290.00 to $294.00 and gave the stock an “in-line” rating in a report on Monday. Two investment analysts have rated the stock with a sell rating, six have issued a hold rating and five have issued a buy rating to the stock. According to data from MarketBeat, Cummins currently has an average rating of “Hold” and an average price target of $299.55.

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.