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

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

Cummins has increased 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% meaning its dividend is sufficiently covered by earnings. 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

Shares of CMI stock traded up $9.46 during trading hours on Wednesday, reaching $597.53. 414,700 shares of the company traded hands, compared to its average volume of 1,019,618. The company has a market cap of $82.48 billion, a P/E ratio of 29.13, a P/E/G ratio of 1.92 and a beta of 1.13. Cummins has a 12-month low of $260.02 and a 12-month high of $617.98. The firm 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 (NYSE:CMI) last announced its quarterly earnings data on Thursday, February 5th. The company reported $5.81 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $5.17 by $0.64. Cummins had a net margin of 8.44% and a return on equity of 25.71%. The firm had revenue of $8.54 billion during the quarter, compared to analysts’ expectations of $8.09 billion. During the same period in the prior year, the company posted $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, sell-side analysts predict that Cummins will post 22.54 earnings per share for the current fiscal year.

Wall Street Analysts Forecast Growth

Several equities analysts have recently commented on the company. Truist Financial restated a “buy” rating and issued a $703.00 price objective (up from $653.00) on shares of Cummins in a research report on Friday. Wells Fargo & Company upped their price target on Cummins from $599.00 to $630.00 and gave the stock an “overweight” rating in a research note on Friday, January 23rd. Sanford C. Bernstein set a $600.00 price objective on shares of Cummins and gave the company a “market perform” rating in a research report on Friday. Weiss Ratings reissued a “buy (b-)” rating on shares of Cummins in a report on Monday, December 29th. Finally, Wall Street Zen raised shares of Cummins from a “hold” rating to a “buy” rating in a research note on Saturday, November 15th. Eleven equities research analysts have rated the stock with a Buy rating and six have issued a Hold rating to the company’s stock. Based on data from MarketBeat, the company has a consensus rating of “Moderate Buy” and an average 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.