In a recent filing with the Securities and Exchange Commission, Cummins Inc . (NYSE:CMI) Vice President of Treasury and Tax, Donald G. Jackson, disclosed the sale of company shares totaling approximately $1.78 million. The transactions occurred on November 12, 2024.
Jackson sold a total of 4,985 shares of Cummins stock, with prices per share ranging from $355.34 to $357.67. Following these sales, Jackson retains ownership of 4,115.639 shares directly.
In addition to the sales, Jackson also exercised stock options to acquire 4,985 shares at prices between $149.72 and $160.10, amounting to a total value of $768,930. These transactions reflect Jackson's active management of his holdings in Cummins Inc., a leading engine and power generation company headquartered in Columbus (WA:CLC), Indiana.
In other recent news, Cummins Inc. has made significant strides in its business operations. Evercore ISI recently upgraded its stock rating from 'In Line' to 'Outperform', reflecting confidence in Cummins' growth potential, especially with the forthcoming launch of its 2027 EPA-compliant engine. The firm also raised the price target for Cummins to $408 from the previous $294.
In addition, Cummins reported stable sales of $8.5 billion and increased EBITDA to $1.4 billion during its Q3 2024 earnings call, leading Baird to increase its stock price target for Cummins to $372.00. Cummins' Power Systems division played a vital role in this performance, exceeding forecasts due to exceptional operational execution.
Cummins has also launched full production of the X15N natural gas engine and inaugurated an electrolyzer manufacturing plant in Spain. Despite mixed performances in China and India and a decline in North American sales, the company's revenue guidance for 2024 remains unchanged, with an improved EBITDA guidance to around 15.5%. These developments underscore Cummins' commitment to sustainable solutions and financial stability.
InvestingPro Insights
The recent insider transaction by Donald G. Jackson aligns with Cummins Inc.'s (NYSE:CMI) strong market performance. According to InvestingPro data, Cummins has seen a remarkable 68.58% price total return over the past year, with the stock currently trading at 98.49% of its 52-week high. This robust performance is reflected in the company's substantial market capitalization of $49.92 billion.
Cummins' financial health appears solid, with a revenue of $34.2 billion in the last twelve months as of Q3 2024, representing a 2.72% growth. The company's profitability is evident from its adjusted operating income of $3.538 billion and an operating income margin of 10.35% for the same period.
InvestingPro Tips highlight Cummins' strong dividend history, having raised its dividend for 19 consecutive years and maintained payments for 54 years. This commitment to shareholder returns is further emphasized by the current dividend yield of 1.99%. The company's ability to sustain and grow its dividend speaks to its financial stability and cash flow generation capabilities.
It's worth noting that Cummins operates with a moderate level of debt, which provides financial flexibility in a capital-intensive industry. The company's P/E ratio (adjusted) of 19.39 suggests a reasonable valuation relative to its earnings, although it's trading at a high Price/Book multiple of 4.85.
For investors seeking more comprehensive analysis, InvestingPro offers 14 additional tips for Cummins, providing a deeper understanding of the company's financial position and market outlook.
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