Cummins Inc. (NYSE:CMI) Plans Quarterly Dividend of $2.20

Cummins Inc. (NYSE:CMI) declared a quarterly dividend on Tuesday, October 13th. Investors of record on Friday, November 20th will be given a dividend of $2.20 per share on Thursday, December 3rd. This represents a $8.80 annualized dividend and a dividend yield of 1.7%. The ex-dividend date of this dividend is Friday, November 20th.

Cummins has increased its dividend by an average of 0.1% per year over the last three years and has raised its dividend annually for the last 19 consecutive years. Cummins has a payout ratio of 36.8% meaning its dividend is sufficiently covered by earnings. Equities research analysts expect Cummins to earn $35.05 per share next year, which means the company should continue to be able to cover its $8.80 annual dividend with an expected future payout ratio of 25.1%.

Cummins Stock Performance

Cummins stock opened at $529.57 on Wednesday. The firm’s fifty day moving average price is $562.88 and its 200-day moving average price is $620.45. The company has a debt-to-equity ratio of 0.48, a quick ratio of 1.13 and a current ratio of 1.73. The stock has a market cap of $72.90 billion, a P/E ratio of 27.06, a price-to-earnings-growth ratio of 1.39 and a beta of 1.24. Cummins has a fifty-two week low of $400.72 and a fifty-two week high of $737.76.

Cummins (NYSE:CMI) last released its earnings results on Tuesday, August 4th. The company reported $6.73 earnings per share for the quarter, missing analysts’ consensus estimates of $7.21 by ($0.48). Cummins had a return on equity of 25.29% and a net margin of 7.82%. The firm had revenue of $9.46 billion during the quarter, compared to the consensus estimate of $9.33 billion. During the same quarter in the previous year, the firm earned $6.43 EPS. The business’s quarterly revenue was up 9.4% compared to the same quarter last year. On average, equities research analysts expect that Cummins will post 30.10 earnings per share for the current fiscal year.

Insiders Place Their Bets

In related news, VP Earl Newsome sold 698 shares of the firm’s stock in a transaction that occurred on Monday, August 24th. The stock was sold at an average price of $572.22, for a total transaction of $399,409.56. Following the completion of the transaction, the vice president owned 4,479 shares of the company’s stock, valued at $2,562,973.38. This trade represents a 13.48% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Company insiders own 0.30% of the company’s stock.

Institutional Trading of Cummins

Institutional investors and hedge funds have recently modified their holdings of the business. Cedar Mountain Advisors LLC raised its stake in Cummins by 1,500.0% during the 1st quarter. Cedar Mountain Advisors LLC now owns 48 shares of the company’s stock valued at $26,000 after buying an additional 45 shares during the last quarter. Persistent Asset Partners Ltd purchased a new position in shares of Cummins in the 2nd quarter worth $26,000. Key Financial Inc boosted its stake in shares of Cummins by 62.5% in the 1st quarter. Key Financial Inc now owns 52 shares of the company’s stock worth $28,000 after buying an additional 20 shares during the last quarter. Elevation Wealth Partners LLC grew its holdings in shares of Cummins by 91.7% in the second quarter. Elevation Wealth Partners LLC now owns 46 shares of the company’s stock worth $33,000 after acquiring an additional 22 shares during the period. Finally, Steph & Co. grew its holdings in shares of Cummins by 112.9% in the first quarter. Steph & Co. now owns 66 shares of the company’s stock worth $36,000 after acquiring an additional 35 shares during the period. Institutional investors own 83.46% of the company’s stock.

About Cummins

Cummins Inc (NYSE: CMI) is a global power technology company headquartered in Columbus, Indiana. Founded in 1919, the company designs, manufactures, sells and services power solutions for commercial, industrial and infrastructure applications.

Its products include diesel and natural-gas engines, electrified powertrains, batteries, fuel cell systems, generators and other power-generation equipment. Cummins also produces components such as filtration systems, fuel systems, turbochargers and emission-control technologies.