Two more senior executives at Cummins have sold a significant amount of shares, bringing the total sold by company leaders this month to nearly 47,000, and the value of the shares sold to about $5.5 million.
The information about the sales came from filings with the Securities and Exchange Commission. Certain executives have to report their stock sales to the SEC.
Five senior Cummins Inc. executives had sold more than 23,000 shares worth nearly $2.8 million between Feb. 8 and Feb. 13, as reported by The Republic on Feb. 16.
According to a filing from Tuesday, Pamela Carter, president of the company’s distribution business, on Feb. 15 sold 16,160 shares valued at about $1.93 million. And a filing Friday showed that Chief Investment Officer Richard Harris had sold nearly 7,200 shares valued at about $815,000.
Cummins officers “are only allowed to sell shares after they have satisfied their officer shareholding requirements and when they have been through an internal review process to ensure that they do not have any material, non-public information,” Jon Mills, director of external communications, said via email last week.
“These sales can only take place during open trading windows that follow the company’s public release of its earnings,” Mills said.
Cummins announced earnings Feb. 6. The stock sales by the executives were filed beginning Feb. 8. After earnings were announced in February 2012, senior executives sold more than 100,000 shares.
A local analyst said last week that the sales in all likelihood did not reflect a diminished confidence that the executives have in Cummins.
From estate planning to a child’s college education expenses to a personal purchase, the executives may have numerous valid reasons to sell shares — without the sale providing any insight into their confidence in the company’s future, said Craig Kessler, president and chief investment officer of Columbus-based Kessler Investment Group.