Form 4: Cummins Inc. Executive Merritt Brett Michael Reports Stock Option Exercises and Share Transactions
SEC Form 4 Filing
Cummins Inc. executive Merritt Brett Michael reports exercising stock options and related share transactions on May 17, 2024, resulting in adjustments to his direct and indirect beneficial ownership.
Summary
- On May 17, 2024, Merritt Brett Michael, a V.P. & President at Cummins Inc., executed multiple transactions involving Cummins Inc. common stock and stock options.
- These transactions included the exercise of stock options at prices of $163.43, $160.1, $149.72, and $109.09, resulting in the acquisition of 2,160, 1,300, 1,000, and 970 shares, respectively.
- Simultaneously, shares were disposed of to cover tax obligations at a price of $285.56, with 636, 735, 982, and 1,645 shares disposed of in separate transactions.
- Following these transactions, Merritt Brett Michael directly owns 4,118.498 shares of Cummins Inc. common stock.
- He also indirectly owns 106.9601 shares through a 401(k) plan.
- The reported transactions also reflect adjustments to the number of derivative securities (stock options) beneficially owned.
Sentiment
Score: 5
Explanation: This is a neutral report on insider trading activity, which is a normal part of corporate governance. The transactions themselves don't necessarily indicate a positive or negative outlook for the company.
Industry Context
This Form 4 filing is a routine disclosure required by the SEC when corporate insiders, like Merritt Brett Michael, transact in their company's stock. It provides transparency to the market regarding the actions of company leadership.
Comparison to Industry Standards
- Form 4 filings are standard practice for publicly traded companies and their executives.
- Similar filings are made by executives at companies like Caterpillar (CAT) and Deere & Company (DE) when they exercise options or trade shares.
- The details disclosed, such as the number of shares, transaction prices, and ownership types, are consistent with SEC regulations and industry norms for insider transaction reporting.
Stakeholder Impact
- The transactions may have a minor impact on shareholders by slightly diluting the stock due to the exercise of stock options.
- The report provides transparency to stakeholders regarding executive compensation and ownership.
Key Dates
| Date | Description |
|---|---|
| 04/04/2019 | Date stock option exercisable related to 970 shares. |
| 04/03/2020 | Date stock option exercisable related to 1,000 shares. |
| 04/03/2021 | Date stock option exercisable related to 1,300 shares. |
| 04/04/2022 | Date stock option exercisable related to 2,160 shares. |
| 04/06/2023 | Date stock option exercisable related to 2,400 shares. |
| 05/17/2024 | Date of stock option exercises and share disposals. |
| 05/20/2024 | Date of Form 4 signature. |
| 04/04/2026 | Expiration date of stock options related to 970 shares. |
| 04/03/2027 | Expiration date of stock options related to 1,000 shares. |
| 04/03/2028 | Expiration date of stock options related to 1,300 shares. |
| 04/04/2029 | Expiration date of stock options related to 2,160 shares. |
| 04/06/2030 | Expiration date of stock options related to 2,400 shares. |
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