CMI Form 4: CFO Mark Smith Executes 10b5-1 Purchases and Sales
Rhea-AI Filing Summary
Mark Andrew Smith, Vice President and Chief Financial Officer of Cummins Inc. (CMI), reported multiple transactions on 08/12/2025 and 08/13/2025. The filing shows purchases of 6,000 and 6,500 shares at $163.43 each and sales of 6,000 and 6,500 shares at $395 and $405 respectively. Following the reported trades, total beneficial ownership figures are listed as 37,582, 31,582, 38,082, and 31,582 across the entries. The filing also reports stock option activity: exercises or acquisitions tied to options with a $163.43 exercise price and an existing option position with a $142.12 exercise price covering 21,310 underlying shares. The form is marked as executed under a Rule 10b5-1 plan.
Positive
- Transactions executed under a Rule 10b5-1 plan, indicating preplanned trades and reduced concern about opportunistic insider timing
- Complete disclosure of option holdings including exercise prices and expiration dates
Negative
- None.
Insights
TL;DR: Insider executed planned buy/sell activity under a 10b5-1 plan, net beneficial ownership unchanged materially.
The transactions show symmetric purchases and sales executed over two days, with purchases at $163.43 and sales at much higher prices ($395 and $405). The Form 4 is checked to indicate trades pursuant to a Rule 10b5-1 plan, which typically signals preplanned transactions rather than opportunistic timing. Option-related entries indicate additional vested/exercisable option positions at exercise prices of $163.43 and $142.12 with listed expiration dates through 2030. For investors, this filing reflects routine insider liquidity and option exercise activity rather than a material corporate development.
TL;DR: Transactions appear compliant and covered by a 10b5-1 plan, suggesting adherence to insider trading policies.
The reporting person is identified as the CFO and the filing explicitly checks the box for transactions made pursuant to a written 10b5-1 plan. That designation reduces regulatory concern about selective disclosure-based trading. The Form 4 also discloses option positions with exercise and expiration dates, consistent with required reporting of derivative holdings. There is no additional governance action or change in role disclosed in the filing.
Insider Trade Summary
| Type | Security | Shares | Price | Value |
|---|---|---|---|---|
| Exercise | Stock Option (Right-to-Buy) | 6,500 | $0.00 | -- |
| Exercise | Common | 6,500 | $163.43 | $1.06M |
| Sale | Common | 6,500 | $405.00 | $2.63M |
| Exercise | Stock Option (Right-to-Buy) | 6,000 | $0.00 | -- |
| Exercise | Common | 6,000 | $163.43 | $981K |
| Sale | Common | 6,000 | $395.00 | $2.37M |
| holding | Stock Option (Right-to-Buy) | -- | -- | -- |
Footnotes (1)
