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

by · The Cerbat Gem

Cummins Inc. (NYSE:CMI – Get Free Report) declared a quarterly dividend on Tuesday, October 15th, RTT News reports. Investors of record on Friday, November 22nd will be paid a dividend of 1.82 per share on Thursday, December 5th. This represents a $7.28 annualized dividend and a yield of 2.19%.

Cummins has raised its dividend payment by an average of 7.2% annually over the last three years and has increased its dividend every year for the last 19 years. Cummins has a dividend payout ratio of 33.1% indicating that its dividend is sufficiently covered by earnings. Equities research analysts expect Cummins to earn $21.97 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 33.1%.

Cummins Price Performance

Cummins stock traded down $5.69 during trading hours on Tuesday, hitting $332.68. The stock had a trading volume of 541,324 shares, compared to its average volume of 1,574,932. Cummins has a 1-year low of $212.80 and a 1-year high of $339.78. The stock has a market capitalization of $45.50 billion, a price-to-earnings ratio of 24.78, a PEG ratio of 1.92 and a beta of 0.98. The stock’s fifty day moving average is $309.45 and its two-hundred day moving average is $293.75. The company has a debt-to-equity ratio of 0.51, a current ratio of 1.34 and a quick ratio of 0.82.

Cummins (NYSE:CMI – Get Free Report) last issued its quarterly earnings data on Thursday, August 1st. The company reported $5.26 EPS for the quarter, beating analysts’ consensus estimates of $4.85 by $0.41. The firm had revenue of $8.80 billion for the quarter, compared to analysts’ expectations of $8.33 billion. Cummins had a net margin of 5.69% and a return on equity of 25.73%. The firm’s revenue was up 2.3% on a year-over-year basis. During the same period in the prior year, the company earned $5.18 EPS. As a group, analysts predict that Cummins will post 19.77 earnings per share for the current fiscal year.

Wall Street Analysts Forecast Growth

CMI has been the topic of a number of recent research reports. JPMorgan Chase & Co. upped their target price on Cummins from $285.00 to $340.00 and gave the company an “underweight” rating in a research note on Friday. Citigroup upped their price objective on Cummins from $345.00 to $375.00 and gave the company a “buy” rating in a research report on Wednesday, October 9th. Evercore ISI lifted their price objective on Cummins from $290.00 to $294.00 and gave the stock an “in-line” rating in a research report on Monday, August 19th. Barclays upped their target price on shares of Cummins from $259.00 to $310.00 and gave the company an “equal weight” rating in a report on Monday, August 5th. Finally, Raymond James initiated coverage on shares of Cummins in a report on Friday, June 28th. They set a “market perform” rating for the company. Two equities research analysts have rated the stock with a sell rating, six have issued a hold rating and five have assigned a buy rating to the company’s stock. Based on data from MarketBeat.com, Cummins has a consensus rating of “Hold” and a consensus price target of $311.55.

View Our Latest Stock Report on Cummins

Insider Activity at Cummins

In related news, SVP Tony Satterthwaite sold 24,250 shares of Cummins stock in a transaction on Friday, August 23rd. The stock was sold at an average price of $308.24, for a total value of $7,474,820.00. Following the transaction, the senior vice president now owns 77,442 shares in the company, valued at approximately $23,870,722.08. This trade represents a 0.00 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. In related news, VP Sharon R. Barner sold 4,780 shares of Cummins stock in a transaction on Thursday, August 15th. The shares were sold at an average price of $300.35, for a total transaction of $1,435,673.00. Following the transaction, the vice president now owns 20,873 shares in the company, valued at approximately $6,269,205.55. The trade was a 0.00 % decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, SVP Tony Satterthwaite sold 24,250 shares of the stock in a transaction on Friday, August 23rd. The shares were sold at an average price of $308.24, for a total value of $7,474,820.00. Following the completion of the sale, the senior vice president now owns 77,442 shares of the company’s stock, valued at approximately $23,870,722.08. This represents a 0.00 % decrease in their ownership of the stock. The disclosure for this sale can be found here. 0.56% of the stock is owned by insiders.

Cummins Company Profile

(Get Free Report)

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.

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