Cummins Inc (NYSE:CMI), a global power leader, is a corporation of complementary business units that design, manufacture, distribute, and service a broad portfolio of power solutions. The company's products range from diesel, natural gas, electric, and hybrid powertrains, and powertrain-related components including filtration, aftertreatment, turbochargers, fuel systems, control systems, air handling systems, automated transmissions, electric power generation systems, batteries, electrified power systems, hydrogen generation, and fuel cell products.
According to a recent SEC filing, Sharon Barner, VP - Chief Administrative Officer of Cummins Inc (CMI, Financial), sold 2,100 shares of the company on February 28, 2024. The transaction was executed at an average price of $271.29 per share, resulting in a total value of $569,709.
Over the past year, the insider has sold a total of 14,500 shares of Cummins Inc (CMI) and has not made any purchases of the stock. The recent sale by the insider is part of a trend observed over the past year, where there has been a predominance of insider selling over buying within the company. Specifically, there has been only 1 insider buy compared to 10 insider sells over the same timeframe.
The market capitalization of Cummins Inc (CMI) stands at $38.104 billion as of the date of the insider's recent transaction. The stock's price-earnings ratio is currently 52.57, which is above both the industry median of 22 and the company's historical median price-earnings ratio. This indicates a higher valuation compared to the industry and the company's own trading history.
Cummins Inc (CMI) shares were trading at $271.29 on the day of the insider's sale, with a GuruFocus Value (GF Value) of $301.89. This results in a price-to-GF-Value ratio of 0.9, suggesting that the stock is modestly undervalued according to GuruFocus's intrinsic value estimate.
The GF Value is determined by considering historical trading multiples such as price-earnings ratio, price-sales ratio, price-book ratio, and price-to-free cash flow, along with a GuruFocus adjustment factor based on the company's past returns and growth, and future business performance estimates from Morningstar analysts.
Investors and analysts often monitor insider transactions as they can provide insights into a company's internal perspective on the stock's valuation and future prospects. The recent selling activity by Sharon Barner, a high-level executive within Cummins Inc (CMI), may attract attention from the market as stakeholders evaluate the implications of such insider movements.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
