Options Exercise Update At Johnson Controls Intl: George Oliver Engages

George Oliver, Chairman & CEO at Johnson Controls Intl JCI, reported a large exercise of company stock options on December 20, according to a new SEC filing.

What Happened: Disclosed in a Form 4 filing on Wednesday 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 0 shares of JCI, resulting in a transaction value of $0.

During Wednesday's morning session, Johnson Controls Intl shares down by 1.15%, currently priced at $53.5. Considering the current price, Oliver's 0 shares have a total value of $0.

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.

Johnson Controls Intl's Financial Performance

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. When compared to others in the Industrials sector, the company faces challenges, achieving a growth rate lower than the average among peers.

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: Johnson Controls Intl's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.53.

Financial Valuation:

• 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: The current P/S ratio of 1.39 is below industry norms, suggesting potential undervaluation and presenting an investment opportunity for those considering sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): The company's EV/EBITDA ratio of 15.79 trails industry averages, indicating a potential disparity in market valuation that could be advantageous for investors.

Market Capitalization: Exceeding industry standards, the company's market capitalization places it above industry average in size relative to peers. This emphasizes its significant scale and robust market position.

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Illuminating the Importance of Insider Transactions

Insider transactions are not the sole determinant of investment choices, but they are a factor worth considering.

In the context of 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 outlined by Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are obligated to report their transactions through a Form 4 filing, which must be completed within two business days of the transaction.

Pointing towards optimism, a company insider's new purchase signals their positive anticipation for the stock to rise.

Despite insider sells not always signaling a bearish sentiment, they can be driven by various factors.

Cracking Transaction Codes

Digging into the details of stock transactions, investors frequently turn their attention to those taking place in the open market, as outlined in Table I of the Form 4 filing. A P in Box 3 indicates 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.