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

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

Cummins has raised its dividend payment 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% indicating that its dividend is sufficiently covered by earnings. Equities 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 Stock Performance

Cummins stock traded up $10.84 during trading on Wednesday, hitting $598.91. The stock had a trading volume of 369,828 shares, compared to its average volume of 1,018,453. The stock’s 50 day moving average is $544.81 and its two-hundred day moving average is $465.89. Cummins has a 1 year low of $260.02 and a 1 year 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. The company has a quick ratio of 1.16, a current ratio of 1.76 and a debt-to-equity ratio of 0.51.

Cummins (NYSE:CMI) last issued its earnings results on Thursday, February 5th. The company reported $5.81 earnings per share (EPS) for the quarter, beating the consensus estimate 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 analyst estimates of $8.09 billion. During the same period in the previous year, the company posted $5.16 earnings per share. The business’s revenue was up 1.1% on a year-over-year basis. As a group, analysts predict that Cummins will post 22.54 EPS for the current year.

Analysts Set New Price Targets

Several equities research analysts have commented on CMI shares. JPMorgan Chase & Co. upped their price objective on shares of Cummins from $485.00 to $580.00 and gave the company a “neutral” rating in a report on Wednesday, January 14th. UBS Group set a $565.00 price target on shares of Cummins and gave the company a “neutral” rating in a research note on Friday, February 6th. Weiss Ratings reaffirmed a “buy (b-)” rating on shares of Cummins in a report on Monday, December 29th. Wells Fargo & Company lifted their price objective on shares of Cummins from $599.00 to $630.00 and gave the company an “overweight” rating in a research note on Friday, January 23rd. Finally, Truist Financial restated a “buy” rating and set a $703.00 target price (up previously from $653.00) on shares of Cummins in a research report on Friday. Eleven research analysts have rated the stock with a Buy rating and six have issued a Hold rating to the stock. According to data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and an average price target 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.