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

Cummins Inc. (NYSE:CMIGet Free Report) announced a quarterly dividend on Tuesday, July 9th, RTT News reports. Stockholders 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 annualized dividend and a dividend yield of 2.71%. This is an increase from Cummins’s previous quarterly dividend of $1.68.

Cummins has increased its dividend payment by an average of 7.2% per year over the last three years and has increased its dividend every year for the last 18 years. Cummins has a dividend payout ratio of 31.1% meaning its dividend is sufficiently covered by earnings. Research analysts expect Cummins to earn $21.73 per share next year, which means the company should continue to be able to cover its $6.72 annual dividend with an expected future payout ratio of 30.9%.

Cummins Trading Down 0.3 %

NYSE:CMI opened at $268.82 on Wednesday. Cummins has a one year low of $212.80 and a one year high of $304.24. The company has a market cap of $36.77 billion, a PE ratio of 19.68, a PEG ratio of 1.69 and a beta of 0.99. The firm has a 50-day moving average of $279.40 and a 200-day moving average of $270.47. The company has a debt-to-equity ratio of 0.57, a current ratio of 1.34 and a quick ratio of 0.84.

Cummins (NYSE:CMIGet Free Report) last released its quarterly earnings results on Thursday, May 2nd. The company reported $5.10 earnings per share for the quarter, missing the consensus estimate of $5.11 by ($0.01). Cummins had a return on equity of 25.38% and a net margin of 5.70%. The firm had revenue of $8.40 billion for the quarter, compared to analysts’ expectations of $8.36 billion. As a group, equities research analysts expect that Cummins will post 18.73 EPS for the current fiscal year.

Wall Street Analysts Forecast Growth

Several research analysts recently weighed in on the stock. TD Cowen boosted their price target on shares of Cummins from $272.00 to $292.00 and gave the stock a “buy” rating in a report on Friday, May 10th. StockNews.com upgraded shares of Cummins from a “hold” rating to a “buy” rating in a report on Wednesday, May 8th. Citigroup began coverage on shares of Cummins in a research note on Wednesday, June 26th. They issued a “buy” rating and a $320.00 target price on the stock. Robert W. Baird dropped their target price on shares of Cummins from $298.00 to $295.00 and set a “neutral” rating on the stock in a research note on Friday, May 3rd. Finally, JPMorgan Chase & Co. boosted their target price on shares of Cummins from $245.00 to $275.00 and gave the company an “underweight” rating in a research note on Monday, March 25th. Two research analysts have rated the stock with a sell rating, five have given a hold rating and six have issued a buy rating to the stock. Based on data from MarketBeat.com, Cummins has a consensus rating of “Hold” and a consensus target price of $287.18.

Read Our Latest Stock Report on CMI

Insider Activity at Cummins

In other news, VP Jeffrey T. Wiltrout bought 282 shares of the firm’s stock in a transaction that occurred on Friday, May 24th. The shares were acquired at an average price of $285.11 per share, with a total value of $80,401.02. Following the acquisition, the vice president now owns 1,262 shares of the company’s stock, valued at approximately $359,808.82. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. In other news, VP Jeffrey T. Wiltrout bought 282 shares of the firm’s stock in a transaction that occurred on Friday, May 24th. The shares were acquired at an average price of $285.11 per share, with a total value of $80,401.02. Following the acquisition, the vice president now owns 1,262 shares of the company’s stock, valued at approximately $359,808.82. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, VP Marvin Boakye bought 1,745 shares of the firm’s stock in a transaction that occurred on Monday, May 20th. The shares were purchased at an average cost of $286.04 per share, for a total transaction of $499,139.80. Following the acquisition, the vice president now directly owns 1,745 shares in the company, valued at approximately $499,139.80. The disclosure for this purchase can be found here. 0.56% of the stock is currently owned by corporate insiders.

About Cummins

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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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Dividend History for Cummins (NYSE:CMI)

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