Cummins Inc. Declares Quarterly Dividend of $2.00 (NYSE:CMI)

Cummins Inc. (NYSE:CMI) declared a quarterly dividend on Tuesday, February 10th. Investors of record on Friday, February 20th will be paid a dividend of 2.00 per share on Thursday, March 5th. This represents a c) dividend on an annualized basis and a yield of 1.3%. The ex-dividend date of this dividend is Friday, February 20th.

Cummins has raised its dividend by an average of 0.1%per year over the last three years and has increased its dividend every year for the last 19 years. Cummins has a dividend payout ratio of 33.4% meaning its dividend is sufficiently covered by earnings. Research analysts expect Cummins to earn $27.63 per share next year, which means the company should continue to be able to cover its $8.00 annual dividend with an expected future payout ratio of 29.0%.

Cummins Trading Up 1.8%

Cummins stock traded up $10.84 during mid-day trading on Wednesday, hitting $598.91. The company’s stock had a trading volume of 369,828 shares, compared to its average volume of 1,018,453. The business has a 50 day moving average price of $544.81 and a 200-day moving average price of $465.89. The company has a debt-to-equity ratio of 0.51, a current ratio of 1.76 and a quick ratio of 1.16. Cummins has a 12 month low of $260.02 and a 12 month high of $617.98. The stock has a market cap of $82.67 billion, a price-to-earnings ratio of 29.19, a price-to-earnings-growth ratio of 1.92 and a beta of 1.13.

Cummins (NYSE:CMI) last announced its quarterly earnings data on Thursday, February 5th. The company reported $5.81 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $5.17 by $0.64. Cummins had a return on equity of 25.71% and a net margin of 8.44%.The firm had revenue of $8.54 billion for the quarter, compared to analysts’ expectations of $8.09 billion. During the same period last year, the firm earned $5.16 earnings per share. The company’s revenue for the quarter was up 1.1% compared to the same quarter last year. As a group, analysts forecast that Cummins will post 22.54 EPS for the current year.

Analyst Upgrades and Downgrades

A number of brokerages have commented on CMI. UBS Group set a $565.00 price target on Cummins and gave the stock a “neutral” rating in a research note on Friday, February 6th. Argus set a $696.00 target price on shares of Cummins in a report on Tuesday. Morgan Stanley reaffirmed an “overweight” rating and issued a $675.00 target price on shares of Cummins in a research note on Friday. Raymond James Financial increased their price target on shares of Cummins from $585.00 to $675.00 and gave the company an “outperform” rating in a research report on Monday. Finally, Wall Street Zen upgraded shares of Cummins from a “hold” rating to a “buy” rating in a research report on Saturday, November 15th. Eleven equities research analysts have rated the stock with a Buy rating and six have given a Hold rating to the company’s stock. According to MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $588.93.

Cummins Company Profile

Cummins Inc (NYSE: CMI) is a global power technology company that designs, manufactures, distributes and services a broad portfolio of diesel and natural gas engines, electrified powertrains, power generation systems and related components. Founded in 1919 and headquartered in Columbus, Indiana, Cummins has grown into one of the world’s leading suppliers of internal combustion engines and a provider of technologies that reduce emissions and improve fuel efficiency.

The company’s product lineup includes heavy-, medium- and light-duty engines for on-highway and off-highway applications, generator sets and power systems for commercial and industrial use, and key engine components such as turbochargers, fuel systems, air handling, filtration and aftertreatment solutions.