Cummins Inc. (NYSE:CMI) Plans Quarterly Dividend of $1.68

Cummins Inc. (NYSE:CMI) declared a quarterly dividend on Tuesday, October 10th, RTT News reports. Shareholders of record on Friday, November 24th will be given a dividend of 1.68 per share on Thursday, December 7th. This represents a $6.72 annualized dividend and a dividend yield of 2.98%. The ex-dividend date of this dividend is Wednesday, November 22nd.

Cummins has raised its dividend by an average of 7.2% per year over the last three years and has increased its dividend every year for the last 18 years. Cummins has a payout ratio of 34.8% meaning its dividend is sufficiently covered by earnings. Equities analysts expect Cummins to earn $19.39 per share next year, which means the company should continue to be able to cover its $6.72 annual dividend with an expected future payout ratio of 34.7%.

Cummins Price Performance

Cummins stock opened at $225.50 on Monday. Cummins has a 52 week low of $203.18 and a 52 week high of $265.28. The company’s 50 day moving average price is $225.47 and its two-hundred day moving average price is $231.57. The company has a quick ratio of 0.90, a current ratio of 1.43 and a debt-to-equity ratio of 0.42. The stock has a market cap of $31.96 billion, a P/E ratio of 11.49, a P/E/G ratio of 1.17 and a beta of 1.07.

Wall Street Analyst Weigh In

A number of research firms recently commented on CMI. JPMorgan Chase & Co. cut shares of Cummins from a “neutral” rating to an “underweight” rating and lowered their price target for the stock from $270.00 to $255.00 in a report on Monday, October 16th. Bank of America lowered their price target on shares of Cummins from $273.00 to $264.00 in a report on Wednesday, October 11th. Credit Suisse Group lowered their price target on shares of Cummins from $290.00 to $288.00 and set an “outperform” rating on the stock in a report on Friday, August 4th. The Goldman Sachs Group lifted their price target on shares of Cummins from $241.00 to $270.00 and gave the stock a “neutral” rating in a report on Friday, August 4th. Finally, StockNews.com started coverage on shares of Cummins in a report on Thursday, October 5th. They set a “buy” rating on the stock. One research analyst has rated the stock with a sell rating, four have given a hold rating and three have assigned a buy rating to the company. Based on data from MarketBeat.com, the stock has an average rating of “Hold” and an average price target of $264.50.

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the company. Spears Abacus Advisors LLC increased its position in shares of Cummins by 5.1% in the first quarter. Spears Abacus Advisors LLC now owns 982 shares of the company’s stock worth $235,000 after purchasing an additional 48 shares during the last quarter. MUFG Americas Holdings Corp raised its position in Cummins by 3.5% during the third quarter. MUFG Americas Holdings Corp now owns 1,462 shares of the company’s stock valued at $298,000 after purchasing an additional 50 shares in the last quarter. Bedel Financial Consulting Inc. lifted its stake in Cummins by 0.7% during the second quarter. Bedel Financial Consulting Inc. now owns 7,113 shares of the company’s stock worth $1,744,000 after purchasing an additional 51 shares during the last quarter. Penserra Capital Management LLC boosted its holdings in shares of Cummins by 7.5% in the 4th quarter. Penserra Capital Management LLC now owns 776 shares of the company’s stock worth $186,000 after purchasing an additional 54 shares in the last quarter. Finally, Federated Hermes Inc. raised its holdings in shares of Cummins by 0.6% during the 1st quarter. Federated Hermes Inc. now owns 9,570 shares of the company’s stock valued at $1,963,000 after buying an additional 54 shares in the last quarter. 81.81% of the stock is currently owned by hedge funds and other institutional investors.

Cummins Company Profile

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.