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

Cummins Inc. (NYSE:CMI) announced a quarterly dividend on Tuesday, February 11th,RTT News reports. Investors 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 annualized dividend and a yield of 1.92%. The ex-dividend date is Friday, February 21st.

Cummins has raised its dividend payment by an average of 7.7% per year over the last three years and has increased its dividend every year for the last 19 years. Cummins has a dividend payout ratio of 27.0% meaning 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 Up 1.5 %

Shares of NYSE:CMI opened at $379.21 on Wednesday. The company has a market capitalization of $52.13 billion, a PE ratio of 13.46, a PEG ratio of 2.13 and a beta of 1.00. Cummins has a 12-month low of $259.06 and a 12-month high of $387.90. The business has a 50 day moving average of $360.92 and a two-hundred day moving average of $340.50. The company has a current ratio of 1.31, a quick ratio of 0.80 and a debt-to-equity ratio of 0.42.

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

Insider Buying and Selling

In related news, VP Sharon R. Barner sold 2,163 shares of the firm’s stock in a transaction dated Thursday, November 21st. The shares were sold at an average price of $369.12, for a total transaction of $798,406.56. Following the completion of the sale, the vice president now directly owns 20,803 shares in the company, valued at approximately $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 accessible through this link. 0.56% of the stock is currently owned by company insiders.

Wall Street Analysts Forecast Growth

A number of equities analysts recently weighed in on the company. Jefferies Financial Group upped their price target on Cummins from $410.00 to $435.00 and gave the stock a “buy” rating in a report on Friday, December 6th. Barclays increased their target price on Cummins from $310.00 to $381.00 and gave the company an “equal weight” rating in a research report on Wednesday, February 5th. Robert W. Baird boosted their price target on shares of Cummins from $395.00 to $407.00 and gave the stock a “neutral” rating in a report on Wednesday, February 5th. Bank of America upgraded shares of Cummins from an “underperform” rating to a “neutral” rating and lifted their target price for the company from $354.00 to $358.00 in a research report on Tuesday, January 14th. Finally, JPMorgan Chase & Co. raised shares of Cummins from an “underweight” rating to a “neutral” rating and boosted their target price for the stock from $355.00 to $420.00 in a research note on Monday, December 9th. 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, Cummins presently has an average rating of “Hold” and a consensus target price of $383.08.

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.