Cummins Inc. (CMI) Hits New 52-Week High Following Dividend Announcement
Cummins Inc. (NYSE:CMI) shares reached a new 52-week high on Tuesday after the company announced a dividend. The stock traded as high as $131.04 and last traded at $128.15, with a volume of 1,347,432 shares trading hands. The stock had previously closed at $128.17.
The newly announced dividend which will be paid on Thursday, December 1st. Investors of record on Monday, November 21st will be issued a $1.025 dividend. This is a positive change from Cummins’s previous quarterly dividend of $0.98. The ex-dividend date is Thursday, November 17th. This represents a $4.10 annualized dividend and a yield of 3.21%. Cummins’s payout ratio is presently 55.93%.
Several brokerages have recently weighed in on CMI. Deutsche Bank AG began coverage on shares of Cummins in a report on Tuesday, September 6th. They set a “sell” rating and a $111.00 price objective on the stock. Credit Agricole SA began coverage on shares of Cummins in a report on Friday, September 30th. They set a “buy” rating and a $150.00 price objective on the stock. Citigroup Inc. upped their price objective on shares of Cummins from $115.00 to $120.00 and gave the company a “neutral” rating in a report on Wednesday, August 3rd. Goldman Sachs Group Inc. upgraded shares of Cummins from a “neutral” rating to a “buy” rating and upped their price objective for the company from $134.00 to $162.00 in a report on Tuesday. Finally, BMO Capital Markets reiterated a “market perform” rating and set a $114.00 price objective on shares of Cummins in a report on Monday, September 12th. Four equities research analysts have rated the stock with a sell rating, fourteen have assigned a hold rating and six have assigned a buy rating to the company’s stock. Cummins currently has a consensus rating of “Hold” and a consensus target price of $114.89.
The company’s 50-day moving average is $123.35 and its 200-day moving average is $117.73. The firm has a market cap of $21.47 billion, a P/E ratio of 17.50 and a beta of 1.46.
Cummins (NYSE:CMI) last posted its quarterly earnings results on Tuesday, August 2nd. The company reported $2.40 earnings per share for the quarter, topping the Zacks’ consensus estimate of $2.15 by $0.25. The business earned $4.50 billion during the quarter, compared to analyst estimates of $4.50 billion. Cummins had a net margin of 6.97% and a return on equity of 19.48%. The company’s revenue was down 9.7% on a year-over-year basis. During the same period in the prior year, the business posted $2.62 earnings per share. On average, equities research analysts forecast that Cummins Inc. will post $8.14 earnings per share for the current year.
In other news, insider Jill E. Cook sold 5,981 shares of the business’s stock in a transaction on Tuesday, July 26th. The shares were sold at an average price of $120.20, for a total value of $718,916.20. Following the transaction, the insider now owns 24,800 shares of the company’s stock, valued at $2,980,960. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this link. Also, CFO Pat Ward sold 5,000 shares of the business’s stock in a transaction on Friday, August 12th. The stock was sold at an average price of $127.50, for a total transaction of $637,500.00. Following the completion of the transaction, the chief financial officer now directly owns 3,024 shares in the company, valued at approximately $385,560. The disclosure for this sale can be found here. 0.57% of the stock is currently owned by company insiders.
Several institutional investors have recently added to or reduced their stakes in the company. First Manhattan Co. increased its position in Cummins by 8.0% in the second quarter. First Manhattan Co. now owns 957 shares of the company’s stock valued at $107,000 after buying an additional 71 shares during the period. BlueMountain Capital Management LLC bought a new position in Cummins during the second quarter valued at approximately $109,000. Signaturefd LLC increased its position in Cummins by 17.1% in the second quarter. Signaturefd LLC now owns 1,111 shares of the company’s stock valued at $125,000 after buying an additional 162 shares during the period. Kanaly Trust Co increased its position in Cummins by 3.1% in the second quarter. Kanaly Trust Co now owns 1,114 shares of the company’s stock valued at $125,000 after buying an additional 34 shares during the period. Finally, FCM Investments TX increased its position in Cummins by 33.3% in the second quarter. FCM Investments TX now owns 1,200 shares of the company’s stock valued at $135,000 after buying an additional 300 shares during the period. 81.36% of the stock is currently owned by hedge funds and other institutional investors.
Cummins Company Profile
Cummins Inc is a manufacturer of diesel engines. The Company operates through four segments: Engine, Distribution, Components and Power Generation. Its Engine segment manufactures and markets a range of diesel and natural gas-powered engines under the Cummins brand name, as well as certain customer brand names for the heavy-and medium-duty truck, bus, recreational vehicle (RV), light-duty automotive, agricultural and governmental equipment markets.
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