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

Cummins Inc. (NYSE:CMI - Get Free Report) announced a quarterly dividend on Tuesday, February 11th,RTT News reports. Investors 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 annualized dividend and a yield of 1.95%. The ex-dividend date of this dividend is Friday, February 21st.

Cummins has increased its dividend payment by an average of 7.7% annually over the last three years and has increased its dividend annually for the last 19 consecutive years. Cummins has a payout ratio of 27.0% indicating that its dividend is sufficiently covered by earnings. Equities 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

CMI traded up $4.39 during trading on Friday, hitting $373.71. The company's stock had a trading volume of 802,013 shares, compared to its average volume of 888,607. The firm's 50 day moving average price is $361.09 and its two-hundred day moving average price is $338.71. The company has a quick ratio of 0.79, a current ratio of 1.31 and a debt-to-equity ratio of 0.42. Cummins has a 12 month low of $259.06 and a 12 month high of $387.90. The stock has a market capitalization of $51.27 billion, a price-to-earnings ratio of 13.27, a price-to-earnings-growth ratio of 2.10 and a beta of 1.00.

Cummins (NYSE:CMI - Get Free Report) last released its earnings results on Tuesday, February 4th. The company reported $5.16 earnings per share for the quarter, topping analysts' consensus estimates of $4.70 by $0.46. The company had revenue of $8.45 billion during the quarter, compared to the consensus estimate 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% on a year-over-year basis. During the same quarter in the previous year, the company posted $4.14 earnings per share. Sell-side analysts forecast that Cummins will post 22.57 earnings per share for the current fiscal year.

Wall Street Analyst Weigh In

CMI has been the subject of a number of recent research reports. Citigroup dropped their target price on Cummins from $435.00 to $430.00 and set a "buy" rating for the company in a research report on Tuesday, January 14th. Evercore ISI raised Cummins from an "in-line" rating to an "outperform" rating and boosted their target price for the company from $294.00 to $408.00 in a research note on Wednesday, November 13th. Truist Financial upped their price objective on Cummins from $424.00 to $425.00 and gave the stock a "hold" rating in a research report on Thursday, January 16th. Robert W. Baird increased their price target on Cummins from $395.00 to $407.00 and gave the company a "neutral" rating in a research report on Wednesday, February 5th. Finally, 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 report on Wednesday, November 6th. Eight equities research analysts have rated the stock with a hold rating and six have given a buy rating to the company. According to MarketBeat, the company currently has an average rating of "Hold" and a consensus price target of $383.08.

Insider Transactions at Cummins

In related news, VP Sharon R. Barner sold 2,163 shares of the stock in a transaction that occurred on Thursday, November 21st. The stock was sold at an average price of $369.12, for a total transaction of $798,406.56. Following the sale, the vice president now owns 20,803 shares of the company's stock, valued at $7,678,803.36. This represents a 9.42 % decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. 0.56% of the stock is owned by corporate insiders.

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.