George Oliver At Johnson Controls Intl Decides to Exercises Options Worth $5.13M

Disclosed in a recent SEC filing on December 10, Oliver, Chairman & CEO at Johnson Controls Intl JCI, made a noteworthy transaction involving the exercise of company stock options.

What Happened: Disclosed in a Form 4 filing on Tuesday with the U.S. Securities and Exchange Commission, Oliver, Chairman & CEO at Johnson Controls Intl, executed a strategic derivative sale. This involved exercising stock options for 124,497 shares of JCI, resulting in a transaction value of $5,128,031.

Johnson Controls Intl shares are currently trading up by 0.17%, with a current price of $82.92 as of Wednesday morning. This brings the total value of Oliver's 124,497 shares to $5,128,031.

Get to Know Johnson Controls Intl Better

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.

Key Indicators: Johnson Controls Intl's Financial Health

Revenue Growth: Over the 3 months period, Johnson Controls Intl showcased positive performance, achieving a revenue growth rate of 19.8% as of 30 September, 2024. This reflects a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Industrials sector.

Navigating Financial Profits:

• Gross Margin: With a high gross margin of 48.36%, the company demonstrates effective cost control and strong profitability relative to its peers.

• 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: Johnson Controls Intl's debt-to-equity ratio is below the industry average at 0.59, reflecting a lower dependency on debt financing and a more conservative financial approach.

Analyzing Market Valuation:

• Price to Earnings (P/E) Ratio: The current Price to Earnings ratio of 39.8 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 2.44 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): Boasting an EV/EBITDA ratio of 23.43, Johnson Controls Intl demonstrates a robust market valuation, outperforming industry benchmarks.

Market Capitalization: Positioned above industry average, the company's market capitalization underscores its superiority in size, indicative of a strong market presence.

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Why Insider Transactions Are Key in Investment Decisions

Insider transactions shouldn't be used primarily to make an investing decision, however, they can be an important factor for an investor to consider.

When discussing legal matters, the term "insider" refers to any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, as stipulated in Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are required to report their transactions through a Form 4 filing, which must be completed within two business days of the transaction.

A new purchase by a company insider is a indication that they anticipate the stock will rise.

On the other hand, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.

A Closer Look at Important Transaction Codes

For investors, a primary focus lies on transactions occurring in the open market, as indicated in Table I of the Form 4 filing. A P in Box 3 denotes 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.

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