Cummins Inc. (CMI) Hits New 52-Week High Following Dividend Announcement
Cummins Inc. (NYSE:CMI) reached a new 52-week high during mid-day trading on Tuesday following a dividend announcement from the company. 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 paid a $1.025 dividend. This is an increase from Cummins’s previous quarterly dividend of $0.98. This represents a $4.10 annualized dividend and a yield of 3.21%. The ex-dividend date of this dividend is Thursday, November 17th. Cummins’s dividend payout ratio (DPR) is 55.93%.
Several equities research analysts recently issued reports on the stock. Goldman Sachs Group Inc. upgraded shares of Cummins from a “neutral” rating to a “buy” rating and raised their target price for the company from $134.00 to $162.00 in a research note on Tuesday. BMO Capital Markets reissued a “market perform” rating and issued a $114.00 price target on shares of Cummins in a report on Monday, September 12th. William Blair set a $110.00 price target on shares of Cummins and gave the company a “hold” rating in a report on Thursday, September 8th. Barclays PLC increased their price target on shares of Cummins from $105.00 to $108.00 and gave the company an “underweight” rating in a report on Wednesday. Finally, Jefferies Group increased their price target on shares of Cummins from $115.00 to $120.00 and gave the company a “hold” rating in a report on Thursday, September 1st. Four equities research analysts have rated the stock with a sell rating, fourteen have given a hold rating and six have given a buy rating to the company. The company has a consensus rating of “Hold” and an average price target of $114.89.
The firm has a market cap of $21.47 billion, a P/E ratio of 17.50 and a beta of 1.46. The company has a 50-day moving average price of $123.35 and a 200 day moving average price of $117.73.
Cummins (NYSE:CMI) last issued its quarterly earnings results on Tuesday, August 2nd. The company reported $2.40 EPS for the quarter, topping the Zacks’ consensus estimate of $2.15 by $0.25. The firm had revenue of $4.50 billion for 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 business’s revenue for the quarter was down 9.7% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $2.62 EPS. Equities research analysts forecast that Cummins Inc. will post $8.14 EPS for the current year.
In other news, insider Jill E. Cook sold 5,981 shares of the company’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 completion of the sale, the insider now owns 24,800 shares of the company’s stock, valued at approximately $2,980,960. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, VP Thaddeus B. Ewald sold 820 shares of the company’s stock in a transaction on Thursday, August 11th. The shares were sold at an average price of $126.95, for a total transaction of $104,099.00. The disclosure for this sale can be found here. 0.57% of the stock is currently owned by insiders.
Several large investors have recently made changes to their positions in CMI. Capital World Investors boosted its stake in shares of Cummins by 19.1% in the second quarter. Capital World Investors now owns 9,599,846 shares of the company’s stock worth $1,079,407,000 after buying an additional 1,540,865 shares during the period. Skandinaviska Enskilda Banken AB publ boosted its stake in shares of Cummins by 4,343.1% in the second quarter. Skandinaviska Enskilda Banken AB publ now owns 1,172,302 shares of the company’s stock worth $131,814,000 after buying an additional 1,145,917 shares during the period. AXA boosted its stake in shares of Cummins by 991.1% in the first quarter. AXA now owns 1,056,200 shares of the company’s stock worth $116,118,000 after buying an additional 959,400 shares during the period. Emerald Acquisition Ltd. acquired a new stake in shares of Cummins during the second quarter worth about $59,639,000. Finally, Bank of Montreal Can acquired a new stake in shares of Cummins during the second quarter worth about $53,030,000. 81.36% of the stock is owned by institutional investors.
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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