At Johnson Controls Intl, George Oliver Chooses To Exercise Options, Resulting In $14.43M

A substantial insider activity was disclosed on November 21, as Oliver, Chairman & CEO at Johnson Controls Intl JCI, reported the exercise of a large sell of company stock options.

What Happened: A notable Form 4 filing on Thursday with the U.S. Securities and Exchange Commission revealed that Oliver, Chairman & CEO at Johnson Controls Intl, exercised stock options for 293,534 shares of JCI, resulting in a transaction value of $14,433,066.

Currently, Johnson Controls Intl shares are trading down 0.0%, priced at $83.99 during Friday's morning. This values Oliver's 293,534 shares at $14,433,066.

All You Need to Know About Johnson Controls Intl

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: 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. When compared to others in the Industrials sector, the company excelled with a growth rate higher than the average among peers.

Key Profitability Indicators:

• 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): Johnson Controls Intl's EPS lags behind the industry average, indicating concerns and potential challenges with a current EPS of 0.95.

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.

Financial Valuation:

• Price to Earnings (P/E) Ratio: The current Price to Earnings ratio of 40.38 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 Price to Sales ratio is 2.47, 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, surpassing industry averages at 23.72, positions it with an above-average valuation in the market.

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

Now trade stocks online commission free with Charles Schwab, a trusted and complete investment firm.

Why Insider Transactions Are Important

While insider transactions should not be the sole basis for making investment decisions, they can play a significant role in an investor's decision-making process.

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.

A Closer Look at Important Transaction Codes

When dissecting transactions, the focal point for investors is often those occurring 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.

Insider Buying Alert: Profit from C-Suite Moves

Benzinga Edge reveals every insider trade in real-time. Don't miss the next big stock move driven by insider confidence. Unlock this ultimate sentiment indicator now. Click here for access.

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