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

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 annualized dividend and a dividend yield of 1.98%.

Cummins has increased its dividend by an average of 7.7% per year over the last three years. Cummins has a payout ratio of 27.5% meaning 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 Price Performance

Shares of CMI stock opened at $367.83 on Wednesday. The stock’s 50-day moving average is $361.68 and its 200 day moving average is $337.74. Cummins has a 1-year low of $250.90 and a 1-year high of $387.90. The company has a debt-to-equity ratio of 0.42, a current ratio of 1.31 and a quick ratio of 0.79. The company has a market cap of $50.46 billion, a P/E ratio of 13.07, a PEG ratio of 2.10 and a beta of 1.00.

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

Wall Street Analysts Forecast Growth

Several brokerages recently weighed in on CMI. Jefferies Financial Group boosted their target price on Cummins from $410.00 to $435.00 and gave the stock a “buy” rating in a research note on Friday, December 6th. Citigroup lowered their price objective on shares of Cummins from $435.00 to $430.00 and set a “buy” rating for the company in a research note on Tuesday, January 14th. The Goldman Sachs Group upped their target price on Cummins from $324.00 to $370.00 and gave the company a “neutral” rating in a research report on Wednesday, November 6th. Vertical Research cut Cummins from a “buy” rating to a “hold” rating and set a $350.00 price target for the company. in a research report on Wednesday, November 6th. Finally, StockNews.com downgraded shares of Cummins from a “strong-buy” rating to a “buy” rating in a report on Thursday, February 6th. Eight analysts have rated the stock with a hold rating and six have given a buy rating to the company. According to data from MarketBeat.com, the company has an average rating of “Hold” and a consensus target price of $383.08.

Insider Transactions 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 transaction of $798,406.56. Following the completion of the transaction, the vice president now owns 20,803 shares in the company, valued at $7,678,803.36. This represents a 9.42 % decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Corporate 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.