Cummins Inc. (NYSE:CMI) Declares Quarterly Dividend of $1.45

Cummins Inc. (NYSE:CMI – Get Rating) announced a quarterly dividend on Tuesday, May 10th, RTT News reports. Shareholders of record on Friday, May 20th will be paid a dividend of 1.45 per share on Thursday, June 2nd. This represents a $5.80 annualized dividend and a yield of 2.94%.

Cummins has raised its dividend payment by an average of 8.0% per year over the last three years and has increased its dividend annually for the last 17 consecutive years. Cummins has a dividend payout ratio of 28.7% indicating that its dividend is sufficiently covered by earnings. Research analysts expect Cummins to earn $20.48 per share next year, which means the company should continue to be able to cover its $5.80 annual dividend with an expected future payout ratio of 28.3%.

NYSE:CMI traded down $5.30 on Tuesday, hitting $197.41. 1,029,729 shares of the company’s stock were exchanged, compared to its average volume of 1,202,726. The firm has a 50-day moving average price of $200.85 and a 200-day moving average price of $216.04. The company has a debt-to-equity ratio of 0.37, a current ratio of 1.68 and a quick ratio of 1.12. Cummins has a 52 week low of $187.72 and a 52 week high of $270.84. The company has a market cap of $27.85 billion, a P/E ratio of 14.61, a price-to-earnings-growth ratio of 1.29 and a beta of 1.03.

Cummins (NYSE:CMI – Get Rating) last issued its earnings results on Tuesday, May 3rd. The company reported $4.04 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $3.55 by $0.49. The company had revenue of $6.39 billion for the quarter, compared to analysts’ expectations of $6.06 billion. Cummins had a net margin of 8.00% and a return on equity of 23.19%. Cummins’s quarterly revenue was up 4.8% compared to the same quarter last year. During the same period in the prior year, the firm earned $4.04 EPS. On average, research analysts expect that Cummins will post 17.67 earnings per share for the current fiscal year.

In related news, VP Christopher C. Clulow sold 285 shares of the stock in a transaction that occurred on Friday, February 25th. The shares were sold at an average price of $205.04, for a total transaction of $58,436.40. The transaction was disclosed in a document filed with the SEC, which is accessible through this link. Also, insider Tracy A. Embree sold 1,470 shares of the stock in a transaction that occurred on Thursday, March 31st. The stock was sold at an average price of $208.41, for a total transaction of $306,362.70. Following the sale, the insider now owns 19,856 shares in the company, valued at approximately $4,138,188.96. The disclosure for this sale can be found here. Insiders have sold a total of 49,348 shares of company stock worth $10,201,817 in the last quarter. 1.05% of the stock is currently owned by company insiders.

A number of large investors have recently modified their holdings of the stock. Deutsche Bank AG lifted its stake in Cummins by 3.2% in the 4th quarter. Deutsche Bank AG now owns 929,609 shares of the company’s stock valued at $202,785,000 after purchasing an additional 28,499 shares during the last quarter. California State Teachers Retirement System lifted its stake in Cummins by 0.3% in the 4th quarter. California State Teachers Retirement System now owns 260,992 shares of the company’s stock valued at $56,933,000 after purchasing an additional 835 shares during the last quarter. Sei Investments Co. lifted its stake in Cummins by 2.4% in the 4th quarter. Sei Investments Co. now owns 81,333 shares of the company’s stock valued at $17,801,000 after purchasing an additional 1,873 shares during the last quarter. SkyView Investment Advisors LLC bought a new position in Cummins in the 4th quarter valued at approximately $245,000. Finally, Eagle Capital Management LLC lifted its stake in Cummins by 1.7% in the 2nd quarter. Eagle Capital Management LLC now owns 15,644 shares of the company’s stock valued at $3,814,000 after purchasing an additional 260 shares during the last quarter. 80.50% of the stock is owned by institutional investors and hedge funds.

A number of research analysts recently commented on CMI shares. Citigroup decreased their price target on shares of Cummins from $260.00 to $220.00 in a research note on Tuesday, April 12th. Credit Suisse Group decreased their price target on shares of Cummins from $304.00 to $270.00 in a research note on Wednesday, May 4th. Zacks Investment Research upgraded shares of Cummins from a “sell” rating to a “hold” rating and set a $204.00 price target on the stock in a research note on Friday, April 15th. Deutsche Bank Aktiengesellschaft decreased their price target on shares of Cummins from $256.00 to $233.00 and set a “hold” rating on the stock in a research note on Thursday, April 14th. Finally, Morgan Stanley decreased their price target on shares of Cummins from $251.00 to $249.00 and set an “equal weight” rating on the stock in a research note on Tuesday, January 18th. Five research analysts have rated the stock with a hold rating and seven have issued a buy rating to the company’s stock. According to data from MarketBeat, Cummins currently has an average rating of “Buy” and an average target price of $255.27.

Cummins Company Profile (Get Rating)

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 New Power. 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 new parts and services, as well as remanufactured parts and engines.

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