Cummins Inc. (NYSE:CMI) declared a quarterly dividend on Monday, October 7th, Zacks reports. Stockholders of record on Thursday, November 14th will be paid a dividend of 1.311 per share on Monday, December 2nd. This represents a $5.24 dividend on an annualized basis and a dividend yield of 3.40%. The ex-dividend date of this dividend is Wednesday, November 13th.
Cummins has raised its dividend payment by an average of 8.1% annually over the last three years and has increased its dividend every year for the last 9 years. Cummins has a payout ratio of 35.1% indicating that its dividend is sufficiently covered by earnings. Equities research analysts expect Cummins to earn $14.46 per share next year, which means the company should continue to be able to cover its $5.24 annual dividend with an expected future payout ratio of 36.2%.
Shares of CMI traded up $1.31 during mid-day trading on Wednesday, reaching $154.45. The company had a trading volume of 114,510 shares, compared to its average volume of 1,273,056. Cummins has a twelve month low of $124.40 and a twelve month high of $175.91. The company has a debt-to-equity ratio of 0.18, a current ratio of 1.66 and a quick ratio of 1.04. The company’s 50-day moving average is $155.52 and its 200-day moving average is $161.31. The company has a market capitalization of $24.25 billion, a P/E ratio of 11.67, a P/E/G ratio of 1.59 and a beta of 1.14.
A number of equities research analysts recently weighed in on CMI shares. Standpoint Research cut Cummins from a “buy” rating to a “hold” rating in a report on Tuesday, July 16th. Loop Capital cut Cummins from a “hold” rating to a “sell” rating and dropped their price target for the company from $168.00 to $145.00 in a report on Tuesday, July 2nd. Morgan Stanley dropped their price target on Cummins from $167.00 to $162.00 and set an “equal weight” rating for the company in a report on Wednesday, July 31st. ValuEngine cut Cummins from a “hold” rating to a “sell” rating in a report on Thursday, August 8th. Finally, Credit Suisse Group raised their price target on Cummins from $198.00 to $203.00 and gave the company an “outperform” rating in a report on Wednesday, July 31st. Three investment analysts have rated the stock with a sell rating, eleven have assigned a hold rating and six have assigned a buy rating to the company’s stock. The stock currently has a consensus rating of “Hold” and an average target price of $166.67.
Cummins Inc designs, manufactures, distributes, and services diesel and natural gas engines, and engine-related component products worldwide. It operates through four segments: Engine, Distribution, Components, and Power Systems segments. The Engine segment manufactures and markets a range of 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.
Further Reading: Price to Earnings Ratio (PE)
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