Summary
This 8-K filing from Cummins Inc. (CMI) reports on a pre-arranged stock trading plan (10b5-1 Plan) adopted by Livingston L. Satterthwaite, Vice President and President of the Distribution Business. The plan allows Mr. Satterthwaite to exercise stock options to purchase up to 8,450 shares of common stock and sell those shares, subject to specific market price conditions and a timeframe ending February 26, 2020, or upon completion of the transactions. This type of plan is designed to allow insiders to trade company stock at a predetermined time when they do not possess material, non-public information, thereby complying with insider trading policies and SEC regulations. The described transactions are expected to occur contemporaneously and will not result in Mr. Satterthwaite's ownership falling below the company's stock ownership guidelines.
Key Highlights
- 1Filing reports on a 10b5-1 trading plan established by Livingston L. Satterthwaite, VP and President of Distribution Business.
- 2The plan allows for the exercise of options and subsequent sale of up to 8,450 shares of Cummins common stock.
- 3Transactions are contingent on the common stock reaching a specified market price.
- 4The plan has a timeframe of 60 days after adoption, continuing until February 26, 2020, or until all 8,450 shares are transacted.
- 5Shares acquired upon exercise will be sold contemporaneously with the exercise.
- 6The 10b5-1 plan complies with insider trading policies and SEC Rule 10b5-1, ensuring trades are made without material non-public information.
- 7Mr. Satterthwaite's stock ownership will remain above company guidelines after these transactions.