Insider Confidence On Display: OLIVIER LEONETTI Acquires $1.69M In Johnson Controls Intl Stock

In a recent SEC filing, it was revealed that OLIVIER LEONETTI, EVP and CFO at Johnson Controls Intl JCI, made a noteworthy insider purchase on December 20,.

What Happened: LEONETTI made a significant move by purchasing 32,233 shares of Johnson Controls Intl as reported in a Form 4 filing with the U.S. Securities and Exchange Commission. The transaction's total worth stands at $1,690,347.

In the Wednesday's morning session, Johnson Controls Intl's shares are currently trading at $53.99, experiencing a down of 0.23%.

Get to Know Johnson Controls Intl Better

Johnson Controls manufactures, installs, and services HVAC systems, building management systems and controls, industrial refrigeration systems, 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: Delving into Financials

Decline in Revenue: Over the 3 months period, Johnson Controls Intl faced challenges, resulting in a decline of approximately -3.18% in revenue growth as of 30 September, 2023. This signifies a reduction in the company's top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Industrials sector.

Navigating Financial Profits:

• Gross Margin: The company faces challenges with a low gross margin of 31.97%, suggesting potential difficulties in cost control and profitability compared to its peers.

• Earnings per Share (EPS): Johnson Controls Intl's EPS reflects a decline, falling below the industry average with a current EPS of 0.806997.

Debt Management: With a below-average debt-to-equity ratio of 0.53, Johnson Controls Intl adopts a prudent financial strategy, indicating a balanced approach to debt management.

Financial Valuation Breakdown:

• Price to Earnings (P/E) Ratio: With a lower-than-average P/E ratio of 20.12, the stock indicates an attractive valuation, potentially presenting a buying opportunity.

• Price to Sales (P/S) Ratio: With a P/S ratio of 1.39 below industry standards, the stock shows potential undervaluation, making it an appealing investment option for those focusing on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): The company's EV/EBITDA ratio 15.79 is below the industry average, indicating that it may be relatively undervalued compared to peers.

Market Capitalization Analysis: Above industry benchmarks, the company's market capitalization emphasizes a noteworthy size, indicative of a strong market presence.

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The Impact of Insider Transactions on Investments

Insider transactions, although significant, should be considered within the larger context of market analysis and trends.

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

Surveying the realm of stock transactions, investors often give prominence to those unfolding in the open market, systematically detailed in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S signifies a sale. Transaction code C denotes 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.