A large exercise of company stock options by Marc Vandiepenbeeck, EVP and CFO at Johnson Controls Intl JCI was disclosed in a new SEC filing on May 8, as part of an insider exercise.
What Happened: Disclosed in a Form 4 filing on Thursday with the U.S. Securities and Exchange Commission, Vandiepenbeeck, EVP and CFO at Johnson Controls Intl, executed a strategic derivative sale. This involved exercising stock options for 23,028 shares of JCI, resulting in a transaction value of $1,103,551.
Johnson Controls Intl shares are currently trading up by 0.14%, with a current price of $91.37 as of Friday morning. This brings the total value of Vandiepenbeeck’s 23,028 shares to $1,103,551.
Unveiling the Story Behind Johnson Controls Intl
Johnson Controls manufactures, installs, and services commercial HVAC systems, building management platforms and controls, fire and security solutions, and industrial refrigeration units. Commercial HVAC and fire and security each account for approximately 45% of sales, while industrial refrigeration and other solutions account for the remaining 10% of revenue. In fiscal 2024, Johnson Controls generated nearly $23 billion in pro forma revenue.
Financial Insights: Johnson Controls Intl
Revenue Growth: Johnson Controls Intl’s remarkable performance in 3 months is evident. As of 31 March, 2025, the company achieved an impressive revenue growth rate of 1.41%. This signifies a substantial increase 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.
Evaluating Earnings Performance:
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Gross Margin: The company excels with a remarkable gross margin of 36.45%, indicating superior cost efficiency and profitability compared to its industry peers.
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Earnings per Share (EPS): Johnson Controls Intl’s EPS reflects a decline, falling below the industry average with a current EPS of 0.73.
Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.63.
Understanding Financial Valuation:
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Price to Earnings (P/E) Ratio: With a lower-than-average P/E ratio of 27.56, the stock indicates an attractive valuation, potentially presenting a buying opportunity.
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Price to Sales (P/S) Ratio: The P/S ratio of 2.62 is lower than the industry average, implying a discounted valuation for Johnson Controls Intl’s stock in relation to sales performance.
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EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Boasting an EV/EBITDA ratio of 18.75, Johnson Controls Intl demonstrates a robust market valuation, outperforming industry benchmarks.
Market Capitalization Analysis: The company’s market capitalization surpasses industry averages, showcasing a dominant size relative to peers and suggesting a strong market position.
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The Importance of Insider Transactions
Emphasizing the importance of a comprehensive approach, considering insider transactions is valuable, but it’s crucial to evaluate them in conjunction with other investment factors.
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.
The Insider’s Guide to Important Transaction Codes
When it comes to transactions, investors tend to focus on those in the open market, detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S indicates 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.
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This article was generated by Benzinga’s automated content engine and reviewed by an editor.
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