Patrick Decker Takes a Bullish Stance: Acquires $104K In Johnson Controls Intl Stock

A significant insider buy by Patrick Decker, Director at Johnson Controls Intl JCI, was executed on August 5, and reported in the recent SEC filing.

What Happened: In a recent Form 4 filing with the U.S. Securities and Exchange Commission on Monday, Decker increased their investment in Johnson Controls Intl by purchasing 1,557 shares through open-market transactions, signaling confidence in the company's potential. The total transaction value is $104,972.

Tracking the Tuesday's morning session, Johnson Controls Intl shares are trading at $66.63, showing a up of 1.4%.

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.

Understanding the Numbers: Johnson Controls Intl's Finances

Revenue Growth: Over the 3 months period, Johnson Controls Intl showcased positive performance, achieving a revenue growth rate of 1.37% as of 30 June, 2024. This reflects a substantial increase in the company's top-line earnings. When compared to others in the Industrials sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Key Profitability Indicators:

• Gross Margin: The company faces challenges with a low gross margin of 34.41%, suggesting potential difficulties in cost control and profitability compared to its peers.

• Earnings per Share (EPS): Johnson Controls Intl's EPS is below the industry average, signaling challenges in bottom-line performance with a current EPS of 1.45.

Debt Management: Johnson Controls Intl's debt-to-equity ratio is below the industry average. With a ratio of 0.65, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

Insights into Valuation Metrics:

• Price to Earnings (P/E) Ratio: The current Price to Earnings ratio of 27.61 is higher than the industry average, indicating the stock is priced at a premium level according to the market sentiment.

• Price to Sales (P/S) Ratio: The P/S ratio of 1.66 is lower than the industry average, implying a discounted valuation for Johnson Controls Intl's stock in relation to sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With an impressive EV/EBITDA ratio of 17.0, Johnson Controls Intl demonstrates exemplary market valuation, surpassing industry averages.

Market Capitalization Analysis: The company's market capitalization is above the industry average, indicating that it is relatively larger in size compared to peers. This may suggest a higher level of investor confidence and market recognition.

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Exploring the Significance of Insider Trading

Investors should view insider transactions as part of a multifaceted analysis and not rely solely on them for decision-making.

Exploring the legal landscape, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, as stipulated by Section 12 of the Securities Exchange Act of 1934. This encompasses executives in the c-suite and major hedge funds. These insiders are required to report their transactions through a Form 4 filing, which must be submitted within two business days of the transaction.

Highlighted by a company insider's new purchase, there's a positive anticipation for the stock to rise.

But, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.

A Deep Dive into Insider Transaction Codes

Digging into the details of stock transactions, investors frequently turn their attention to those taking place in the open market, as outlined in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S signifies a sale. Transaction code C signals 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.

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