Benzinga - by Benzinga Insights, Benzinga Staff Writer.
On December 20, a substantial insider purchase was made by NATHAN MANNING, COO at Johnson Controls Intl (NYSE:JCI), as per the latest SEC filing.
What Happened: In a significant move reported in a Form 4 filing with the U.S. Securities and Exchange Commission on Wednesday, MANNING purchased 18,595 shares of Johnson Controls Intl, demonstrating confidence in the company's growth potential. The total value of the transaction stands at $975,164.
The latest market snapshot at Wednesday morning reveals Johnson Controls Intl shares down by 1.15%, trading at $53.5.
All You Need to Know About Johnson Controls Intl 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.
A Deep Dive into Johnson Controls Intl's Financials Revenue Growth: Johnson Controls Intl's revenue growth over a period of 3 months has faced challenges. As of 30 September, 2023, the company experienced a revenue decline of approximately -3.18%. This indicates a decrease 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 31.97%, suggesting potential challenges 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.
Market Valuation:
- Price to Earnings (P/E) Ratio: The P/E ratio of 20.12 is lower than the industry average, implying a discounted valuation for Johnson Controls Intl's stock.
- 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): With an EV/EBITDA ratio lower than industry benchmarks at 15.79, Johnson Controls Intl presents an attractive value opportunity.
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Understanding the Significance of Insider Transactions 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.
Cracking Transaction Codes Navigating through the landscape of transactions, investors often prioritize those unfolding in the open market, precisely 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 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.
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