Director Daniel Fisher Acquires 562 Shares of Cummins Inc
Daniel Fisher, a director at Cummins Inc (NYSE:CMI), has increased the insider's stake in the company by purchasing 562 shares on February 27, 2024, according to a recent SEC Filing. This transaction has been made public as part of the regulatory requirements that mandate insiders to disclose their trading activities.
Cummins Inc is a global power leader that designs, manufactures, distributes, and services diesel and natural gas engines and related technologies, including fuel systems, controls, air handling, filtration, emission solutions, and electrical power generation systems.
Insider buying and selling activities are closely monitored by investors as they can provide insights into a company's internal perspective. An insider purchase can be seen as a positive sign, indicating that the insider may believe the stock is undervalued or that there are positive developments ahead for the company.
Over the past year, the insider has purchased a total of 562 shares and has not sold any shares of Cummins Inc.
The insider transaction history for Cummins Inc shows a pattern of 1 insider buy and 9 insider sells over the past year.
On the date of the insider's recent purchase, shares of Cummins Inc were trading at $266.57, giving the company a market capitalization of $38.094 billion.
The price-earnings ratio of Cummins Inc stands at 52.55, which is above the industry median of 22.19 and also exceeds the company's historical median price-earnings ratio.
With the current share price of $266.57 and a GuruFocus Value of $301.94, Cummins Inc has a price-to-GF-Value ratio of 0.88, suggesting that the stock is Modestly Undervalued according to the GF Value metric.
The GF Value is a proprietary intrinsic value estimate from GuruFocus, which is calculated based on historical trading multiples, a GuruFocus adjustment factor, and future business performance estimates provided by Morningstar analysts.
The insider's recent acquisition could be a signal to investors, especially when considering the stock's current valuation relative to its GF Value.
Investors and analysts often look for patterns in insider trading to gauge the potential future performance of a company's stock. The recent insider buying activity at Cummins Inc may be a point of interest for those following the company.
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.
This article first appeared on GuruFocus.
