George Oliver, Chairman & CEO at Johnson Controls Intl JCI, reported a large exercise of company stock options on November 25, according to a new SEC filing.

What Happened: The latest Form 4 filing on Monday with the U.S. Securities and Exchange Commission uncovered Oliver, Chairman & CEO at Johnson Controls Intl, exercising stock options for 180,734 shares of JCI. The total transaction was valued at $8,769,213.

During Tuesday’s morning session, Johnson Controls Intl shares down by 0.0%, currently priced at $83.34. Considering the current price, Oliver’s 180,734 shares have a total value of $8,769,213.

Delving into Johnson Controls Intl’s Background

Johnson Controls manufactures, installs, and services HVAC systems, building management systems and controls, industrial refrigeration units, and fire and security solutions. Commercial HVAC accounts for over 45% of sales, fire and security represents roughly 40% of sales, and residential HVAC, industrial refrigeration, and other solutions account for the remaining 15% of revenue. In fiscal 2023, Johnson Controls generated nearly $27 billion in revenue.

Breaking Down Johnson Controls Intl’s Financial Performance

Revenue Growth: Johnson Controls Intl’s revenue growth over a period of 3 months has been noteworthy. As of 30 September, 2024, the company achieved a revenue growth rate of approximately 19.8%. This indicates a substantial increase in the company’s top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Industrials sector.

Key Profitability Indicators:

• Gross Margin: The company maintains a high gross margin of 48.36%, indicating strong cost management and profitability compared to its peers.

• Earnings per Share (EPS): Johnson Controls Intl’s EPS is below the industry average. The company faced challenges with a current EPS of 0.95. This suggests a potential decline in earnings.

Debt Management: Johnson Controls Intl’s debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.59.

Market Valuation:

• Price to Earnings (P/E) Ratio: Johnson Controls Intl’s stock is currently priced at a premium level, as reflected in the higher-than-average P/E ratio of 40.07.

• Price to Sales (P/S) Ratio: The Price to Sales ratio is 2.45, which is lower than the industry average. This suggests a possible undervaluation based on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Johnson Controls Intl’s EV/EBITDA ratio stands at 23.57, surpassing industry benchmarks. This places the company in a position with a higher-than-average market valuation.

Market Capitalization Analysis: The company’s market capitalization surpasses industry averages, showcasing a dominant size relative to peers and suggesting a strong market position.

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Navigating the Impact of Insider Transactions on Investments

Insightful as they may be, insider transactions should be considered alongside a thorough examination of other investment criteria.

In legal terms, an “insider” refers to any officer, director, or beneficial owner of more than ten percent of a company’s equity securities registered under Section 12 of the Securities Exchange Act of 1934. This can include executives in the c-suite and large hedge funds. These insiders are required to let the public know of their transactions via a Form 4 filing, which must be filed within two business days of the transaction.

When a company insider makes a new purchase, that is an indication that they expect the stock to rise.

Insider sells, on the other hand, can be made for a variety of reasons, and may not necessarily mean that the seller thinks the stock will go down.

Exploring Key Transaction Codes

Examining transactions, investors often concentrate on those unfolding in the open market, meticulously detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C indicates the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.

Check Out The Full List Of Johnson Controls Intl’s Insider Trades.

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This article was generated by Benzinga’s automated content engine and reviewed by an editor.