Cummins Inc. (CMI) To Go Ex-Dividend on August 21st

Cummins Inc. (NYSE:CMI) declared a quarterly dividend on Sunday, July 12th. Investors of record on Friday, August 21st will be given a dividend of 2.20 per share on Thursday, September 3rd. This represents a c) dividend on an annualized basis and a yield of 1.3%. The ex-dividend date of this dividend is Friday, August 21st. This is a 10.0% increase from Cummins’s previous quarterly dividend of $2.00.

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 payout ratio of 33.4% meaning its dividend is sufficiently covered by earnings. Research analysts expect Cummins to earn $34.02 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 23.5%.

Cummins Price Performance

CMI stock opened at $663.64 on Tuesday. Cummins has a 1 year low of $335.48 and a 1 year high of $737.76. The company has a debt-to-equity ratio of 0.50, a current ratio of 1.71 and a quick ratio of 1.11. The business has a 50 day simple moving average of $679.36 and a 200-day simple moving average of $611.01. The firm has a market capitalization of $91.58 billion, a PE ratio of 34.44, a price-to-earnings-growth ratio of 1.65 and a beta of 1.22.

Cummins (NYSE:CMI) last released its quarterly earnings data on Tuesday, May 5th. The company reported $6.15 earnings per share (EPS) for the quarter, topping the consensus estimate of $5.63 by $0.52. Cummins had a net margin of 7.89% and a return on equity of 25.25%. The firm had revenue of $8.40 billion during the quarter, compared to analysts’ expectations of $8.37 billion. During the same period last year, the business earned $5.96 earnings per share. Cummins’s revenue was up 2.7% compared to the same quarter last year. Equities research analysts anticipate that Cummins will post 29.32 earnings per share for the current fiscal year.

Analyst Ratings Changes

A number of analysts have issued reports on the company. Truist Financial boosted their target price on Cummins from $815.00 to $901.00 and gave the company a “buy” rating in a research report on Thursday, July 2nd. Barclays raised their price target on Cummins from $610.00 to $760.00 and gave the company an “overweight” rating in a research note on Wednesday, May 6th. Wells Fargo & Company increased their target price on shares of Cummins from $794.00 to $874.00 and gave the company an “overweight” rating in a research report on Wednesday, June 17th. Robert W. Baird set a $700.00 price objective on Cummins in a report on Wednesday, May 6th. Finally, Raymond James Financial upped their price objective on Cummins from $675.00 to $745.00 and gave the company an “outperform” rating in a research note on Tuesday, May 26th. One investment analyst has rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and three have given a Hold rating to the company. According to data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $738.00.

About Cummins

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.