Benzinga - by Benzinga Insights, Benzinga Staff Writer.
A notable acquisition unfolded on December 20, as MANNING, COO at Johnson Controls Intl (NYSE:JCI), reported the acquisition of stock options for 41,266 shares in an SEC filing.
What Happened: Revealed in a Form 4 filing on Wednesday with the U.S. Securities and Exchange Commission, MANNING, COO at Johnson Controls Intl, strategically acquired stock options for 41,266 shares of JCI. These options empower MANNING to buy the company's stock at a favorable exercise price of $53.52 per share.
Johnson Controls Intl shares are currently trading down by 0.23%, with a current price of $53.99 as of Wednesday morning. This brings the total value of MANNING's 41,266 shares to $19,601.
Delving into Johnson Controls Intl's Background 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. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Industrials sector.
Profitability Metrics: Unlocking Value
- 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): With an EPS below industry norms, Johnson Controls Intl exhibits below-average bottom-line performance with a current EPS of 0.806997.
Assessing Valuation Metrics:
- 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 a lower-than-industry-average EV/EBITDA ratio of 15.79, Johnson Controls Intl presents a potential value opportunity, as investors are paying less for each unit of EBITDA.
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Why Pay Attention to Insider Transactions Considering insider transactions is valuable, but it's crucial to evaluate them in conjunction with other investment factors.
In the realm of legality, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities under Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are required to disclose their transactions through a Form 4 filing, to be submitted within two business days of the transaction.
Notably, when a company insider makes a new purchase, it is considered an indicator of their positive expectations for the stock.
Conversely, insider sells may not necessarily signal a bearish stance on the stock and can be motivated by various factors.
Deciphering Transaction Codes in Insider Filings 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.
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