Rockwell Collins (COL, Financial) Senior Vice President-Operations Bruce Michael King sold 2,735 shares on April 6. The shares were sold for $100 apiece.
Headquartered in Cedar Rapids, Iowa, Rockwell Collins is a designer, producer and supporter of aviation systems for commercial and military customers. The company operates in three business segments:
- Government Systems – Part of its business provides electronic products, systems and services to its customers. This includes the Department of Defense, various ministries of defense and other agencies and defense contractors around the world.
- Commercial Systems – Includes aviation, electronics systems and products and services.
- Informational Management Services – Offers security solutions, systems integration and communications services to its customers which include government agencies and defense contractors.
Rockwell Collins has a market cap of $16.9 billion, a price-earnings (P/E) ratio of 18.65, an enterprise value of $18.64 billion, a price-book (P/B) ratio of 5.70 and a price-sales (P/S) ratio of 2.59.
According to GuruFocus, the company has a 5 of 10 financial strength rating with a cash-debt ratio of 0.13 and an equity-asset ratio of 0.31. Its Altman Z-Score of 3.86 indicates it is in the safe zone and is not in danger of filing for bankruptcy. The company’s Beneish M-Score of -1.92 indicates it is a manipulator of its financial statements.
The company has a 9 of 10 profitability and growth rating. It has an operating margin of 19.51%, a net margin of 13.83%, a return on assets (ROA) of 9.57% and a return on capital (ROC) Joel Greenblatt (Trades, Portfolio) of 38.13%.
King may have decided to sell the shares because the company had reached its nine-year price high.
King may also have wanted to cash in on his profit to reduce his variance in the future because Rockwell Collins is trading above its intrinsic value, according to the Peter Lynch chart below.
Disclosure: Author does not own any shares of this company.
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