Form 4: Cummins Inc. Executive Amy R. Davis Reports Changes in Beneficial Ownership
SEC Form 4 Filing
Amy R. Davis, VP & President of New Power at Cummins Inc., reports acquisition and disposal of common stock due to tax liabilities related to earned performance shares.
Summary
- On March 1, 2024, Amy R. Davis, VP & President of New Power at Cummins Inc., reported changes in beneficial ownership of Cummins Inc. stock.
- Davis acquired 2,340 shares of common stock at $0.00.
- She disposed of 697 shares at $270.26 and 775 shares at $270.26 to cover tax liabilities related to earned performance shares.
- Following these transactions, Davis directly owns 8,845.013 shares of Cummins Inc. common stock.
- Davis also holds multiple stock options with varying exercise prices and expiration dates.
Sentiment
Score: 5
Explanation: The document is a standard regulatory filing detailing insider transactions. It doesn't inherently convey positive or negative sentiment, but rather provides factual information.
Industry Context
Form 4 filings are standard practice and provide transparency into the trading activities of company insiders, which can be an indicator of management's perspective on the company's valuation and future prospects.
Comparison to Industry Standards
- Monitoring insider transactions is a common practice in financial analysis, with firms like Bloomberg, FactSet, and Thomson Reuters providing tools to track and analyze these filings.
- Comparing the trading activity of Cummins Inc. insiders to those of peers like Caterpillar Inc. (CAT) and Deere & Company (DE) can provide insights into relative valuation and sentiment.
- The disposal of shares to cover tax liabilities is a routine occurrence, but the size and frequency of these transactions can be compared to industry averages to assess potential concerns.
Stakeholder Impact
- The transactions have a minor impact on shareholders as they involve a small percentage of the total outstanding shares.
- The disposal of shares to cover tax liabilities is a normal part of executive compensation and does not indicate any fundamental change in the company's prospects.
Key Dates
| Date | Description |
|---|---|
| 06/01/2018 | Date of Stock Option (Right-to-Buy) with exercise price of $135.22 |
| 04/04/2019 | Date of Stock Option (Right-to-Buy) with exercise price of $109.09 |
| 04/03/2020 | Date of Stock Option (Right-to-Buy) with exercise price of $149.72 |
| 04/03/2021 | Date of Stock Option (Right-to-Buy) with exercise price of $160.1 |
| 04/04/2022 | Date of Stock Option (Right-to-Buy) with exercise price of $163.43 |
| 04/06/2023 | Date of Stock Option (Right-to-Buy) with exercise price of $142.12 |
| 07/01/2023 | Date of Stock Option (Right-to-Buy) with exercise price of $170.95 |
| 06/13/2023 | Date of Power of Attorney document |
| 03/01/2024 | Date of reported transactions: acquisition and disposal of common stock |
| 03/05/2024 | Date of signature for the report |
| 06/01/2025 | Expiration Date of Stock Option (Right-to-Buy) with exercise price of $135.22 |
| 04/04/2026 | Expiration Date of Stock Option (Right-to-Buy) with exercise price of $109.09 |
| 04/03/2027 | Expiration Date of Stock Option (Right-to-Buy) with exercise price of $149.72 |
| 04/03/2028 | Expiration Date of Stock Option (Right-to-Buy) with exercise price of $160.1 |
| 04/04/2029 | Expiration Date of Stock Option (Right-to-Buy) with exercise price of $163.43 |
| 04/06/2030 | Expiration Date of Stock Option (Right-to-Buy) with exercise price of $142.12 |
| 07/01/2030 | Expiration Date of Stock Option (Right-to-Buy) with exercise price of $170.95 |
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