In a recent transaction, Tony Satterthwaite, Senior Vice President of Cummins Inc . (NYSE:CMI), sold a significant amount of company stock, totaling over $7.4 million. The executive's sales took place on August 23, 2024, as disclosed in the latest filings with the Securities and Exchange Commission.
Satterthwaite disposed of 4,174 shares at an average price of $309.5077, 7,800 shares at an average price of $307.4899, and 11,876 shares at an average price of $308.2298. The prices for these sales ranged between $307.4899 and $310.08. Additionally, a smaller transaction of 400 shares was sold at an average price of $310.0800. The sales were executed in multiple transactions at various prices, details of which Satterthwaite has offered to provide upon request.
Prior to these sales, Satterthwaite exercised options to acquire 24,250 shares of Cummins stock at a set price of $109.09, which contributed to a total transaction value of $2,645,432 for the "M" transactions.
The transactions have resulted in a change in Satterthwaite's holdings in Cummins Inc., with the executive now owning 77,442.4553 shares directly, and an additional 2,393.8871 shares indirectly through the company's 401(k) plan. It's worth noting that the 401(k) plan shares are in a unitized account, which consists of approximately 98% common stock and 2% cash or cash equivalents.
Cummins Inc., known for its engines and turbines, continues to be a major player in the industrial sector, with these transactions reflecting the ongoing financial activities of its senior executives.
Investors and followers of Cummins Inc. can expect to receive full information on the number of shares sold at each separate price within the ranges indicated, should they request it from Satterthwaite, as per the footnotes in the SEC filing.
In other recent news, Cummins Inc. reported strong Q2 results for 2024, with sales reaching $8.8 billion, a 2% increase from the previous year, and EBITDA rising to $1.35 billion, representing 15.3% of sales. The company has raised its full-year 2024 revenue outlook to down 3% to flat and EBITDA to 15% to 15.5%. These recent developments follow strategic partnerships with Isuzu Motors and Daimler (OTC:MBGAF) Trucks and buses, which have bolstered the company's position. Additionally, Cummins received a $75 million grant from the Department of Energy and returned value to shareholders, increasing its quarterly dividend by 8.3% and repurchasing $230 million in shares.
In other developments, Citi reaffirmed its Buy rating on Cummins stock, strengthening its conviction in the company's positive prospects through 2025. This optimism is based on factors such as growth in Power Systems and Power Generation, stable demand in North America's medium-duty segment, a rebound in China, and the company's ability to maintain pricing above costs. Despite anticipating a softening North American heavy-duty truck market in the latter half of the year, Cummins remains optimistic due to strong demand in the power generation market and consistent performance in the Chinese truck market.
InvestingPro Insights
As Cummins Inc. (NYSE:CMI) navigates the industrial landscape, the company showcases a robust financial profile, according to the latest data from InvestingPro. Cummins boasts a solid market capitalization of $42.0 billion, underpinning its significant presence in the industry. The company's Price to Earnings (P/E) ratio stands at 22.16, which adjusts to a more attractive figure of 17.33 when considering the last twelve months as of Q2 2024. This suggests that investors are valuing Cummins' earnings growth prospects positively. Additionally, the company's revenue has grown by 6.15% over the last twelve months as of Q2 2024, indicating a steady upward trajectory in its financial performance.
InvestingPro Tips highlight Cummins' strong track record of dividend reliability, with the company having raised its dividend for 18 consecutive years and maintained dividend payments for 54 consecutive years. This consistency is a testament to Cummins' financial stability and commitment to shareholder returns. Furthermore, analysts are optimistic about Cummins' future, with 13 analysts revising their earnings upwards for the upcoming period, and net income is expected to grow this year. For investors considering Cummins Inc. as a potential addition to their portfolio, these factors underscore the company's financial health and potential for continued profitability.
For those seeking more detailed analysis and additional insights, InvestingPro offers a range of tips, with 9 more tips currently available on their platform, including information about the company's debt levels, profitability, and return over the last five years. Visit https://www.investing.com/pro/CMI to explore these valuable resources and make more informed investment decisions.
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