The Board of Directors of Cummins Inc. (NYSE:CMI) approved an increase in the Company’s quarterly cash dividend on common stock of 25 percent to 97.5 cents per share from78 cents per share. The dividend is payable on September 1, 2015, to shareholders of record on August 21, 2015.
“The increase in our dividend reinforces our commitment to increasing returns to shareholders and reflects our confidence in our performance over the long term,” said Tom Linebarger, Chairman and Chief Executive Officer. “As a result of the Company’s strong financial position, we are able to increase returns to our shareholders, while continuing to invest in the future and provide our customers with the best products and services that help them succeed.” (Original Source)
Shares of Cummins opened today at $130.17 and are currently trading down at $129.85. CMI has a 1-year high of $155.03 and a 1-year low of $124.30. The stock’s 50-day moving average is $134.55 and its 200-day moving average is $138.12.
On the ratings front, Cummins has been the subject of a number of recent research reports. In a report issued on June 12, Piper Jaffray analyst Alexander Potter reiterated a Buy rating on CMI, with a price target of $162, which represents a potential upside of 24.5% from where the stock is currently trading. Separately, on April 29, Deutsche Bank’s Vishal Shah initiated coverage with a Buy rating on the stock and has a price target of $154.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Alexander Potter and Vishal Shah have a total average return of -8.3% and -12.7% respectively. Potter has a success rate of 39.3% and is ranked #3457 out of 3702 analysts, while Shah has a success rate of 27.4% and is ranked #3669.
Overall, 2 research analysts have assigned a Hold rating and 2 research analysts have given a Buy rating to the stock. When considering if perhaps the stock is under or overvalued, the average price target is $160.50 which is 23.3% above where the stock opened today.
Cummins Inc designs, manufactures, distributes and services diesel and natural gas engines, electric power generation systems and engine-related component products.