JULIE BRANDT HEUER Of Johnson Controls Intl Shows Optimism, Buys $999K In Stock

On November 19, JULIE BRANDT HEUER, VP at Johnson Controls Intl JCI executed a significant insider buy, as disclosed in the latest SEC filing.

What Happened: HEUER's recent purchase of 11,954 shares of Johnson Controls Intl, disclosed in a Form 4 filing with the U.S. Securities and Exchange Commission on Tuesday, reflects confidence in the company's potential. The total transaction value is $999,952.

As of Wednesday morning, Johnson Controls Intl shares are down by 0.0%, currently priced at $83.53.

Discovering Johnson Controls Intl: A Closer Look

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.

Johnson Controls Intl: Financial Performance Dissected

Decline in Revenue: Over the 3 months period, Johnson Controls Intl faced challenges, resulting in a decline of approximately -13.59% in revenue growth as of 30 September, 2024. This signifies a reduction in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Industrials sector.

Profitability Metrics:

• Gross Margin: The company shows a low gross margin of 36.3%, indicating concerns regarding cost management and overall profitability relative to its industry counterparts.

• Earnings per Share (EPS): With an EPS below industry norms, Johnson Controls Intl exhibits below-average bottom-line performance with a current EPS of 0.95.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.59.

Financial Valuation:

• Price to Earnings (P/E) Ratio: Johnson Controls Intl's current Price to Earnings (P/E) ratio of 40.16 is higher than the industry average, indicating that the stock may be overvalued according to market sentiment.

• Price to Sales (P/S) Ratio: The Price to Sales ratio is 2.46, 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): A high EV/EBITDA ratio of 24.14 reflects market recognition of Johnson Controls Intl's value, positioning it as more highly valued compared to industry peers.

Market Capitalization Highlights: Above the industry average, the company's market capitalization signifies a significant scale, indicating strong confidence and market prominence.

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The Relevance of Insider Transactions

Considering insider transactions is valuable, but it's crucial to evaluate them in conjunction with other investment factors.

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

The initiation of a new purchase by a company insider serves as a strong indication that they expect the stock to rise.

However, insider sells may not always signal a bearish view and can be influenced by various factors.

Unlocking the Meaning of Transaction Codes

Taking a closer look at transactions, investors often prioritize those unfolding in the open market, meticulously cataloged in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C denotes the conversion of an option, and transaction code A signifies 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.