Johnson Controls EVP and CFO sells $13.7K in stock by Investing.com

Johnson Controls (NYSE:) International plc (NYSE:JCI) Executive Vice President and Chief Financial Officer Marc Vandiepenbeeck has sold some of his company’s stock, according to a recent regulatory filing. Vandiepenbeeck unloaded 186 shares of common stock at a price of $73.81 each, for a total transaction value of approximately $13,728.

The transaction, which took place on September 20, 2024, was executed pursuant to a Rule 10b5-1 trading plan, a mechanism that allows company insiders to establish a predetermined plan to sell stock at a specific time or price, giving them an affirmative defense. against allegations of insider trading. This plan was adopted by Vandiepenbeeck on 8 August 2023.

Following the sale, the director’s remaining stake in the company is 83,702.25 shares. The sale represents a minor adjustment to Vandiepenbeeck’s position in the company, suggesting a routine financial move rather than a change in confidence about the company’s future prospects.

Johnson Controls International plc, with its trademark JCI, is a global leader in the provision of construction products and technology solutions. The company specializes in air conditioning, heating equipment and industrial refrigeration systems.

Investors and Johnson Controls shareholders often monitor the buying and selling activities of company insiders such as Vandiepenbeeck because these trades can provide information about executives’ perspectives on the company’s valuation and future performance. However, it is common for insiders to sell stock for personal financial planning reasons that are not necessarily indicative of the company’s operational performance.

Details of the transaction were made public through a Form 4 filing with the Securities and Exchange Commission.

In other recent news, Johnson Controls International plc announced a quarterly dividend of $0.37 per share, maintaining a long-standing tradition dating back to 1887. This decision highlights the company’s commitment to shareholder value and its financial stability. In other developments, the company reported third-quarter organic sales growth of 3 percent and segment margin of 17.9 percent, along with a 10 percent increase in its inventory to $12.9 billion.

Johnson Controls is undergoing a leadership transition with the retirement of CEO George Oliver and the appointment of Patrick Decker, former CEO of Xylem (NYSE:), to its Board of Directors. Analyst firms Morgan Stanley, RBC Capital and Oppenheimer all adjusted their ratings and price targets for the company. Morgan Stanley initiated coverage with an Overweight rating and a $85.00 price target, RBC Capital upgraded its rating to Sector Perform with a $69 price target, and Oppenheimer maintained an Outperform rating with a target of price of $79.

In line with its strategic shift, Johnson Controls is divesting its residential and light commercial HVAC and Air Distribution Technologies businesses to focus on becoming a pure supplier of commercial building solutions, particularly data centers. The company expects to see mid- to high-single-digit growth in its services business and mid-single-digit growth in its systems business. These developments are part of the company’s ongoing transformation towards a more focused and efficient operational strategy.

InvestingPro Insights

Johnson Controls International plc (NYSE:JCI) recently saw its executive vice president and chief financial officer, Marc Vandiepenbeeck, engage in selling the company’s stock. To provide investors with broader context, InvestingPro’s data and advice can provide additional insight into a company’s financial health and market position.

InvestingPro data indicates that Johnson Controls has a market capitalization of $49.24 billion, reflecting its significant presence in the building products industry. The company’s P/E ratio is 30.89, suggesting that it trades at a high multiple to earnings, a detail that aligns with one of InvestingPro Tips indicating that JCI may be richly valued by the market. This could be of interest to investors evaluating the company’s stock relative to its earnings.

The company has also demonstrated a commitment to shareholder returns, increasing dividends for 3 consecutive years and maintaining dividend payments for 54 consecutive years, as another InvestingPro tip pointed out. This could be particularly attractive to income-focused investors. The dividend yield from the most recent data is 2.03%, the last ex-date of the dividend being June 24, 2024.

Additionally, Johnson Controls is recognized as a prominent player in the building products industry, which can provide a degree of resilience and stability to the company’s stock. This is supported by the company’s moderate level of debt and its profitability over the past twelve months, with analysts predicting that the company will remain profitable this year.

For investors seeking a more comprehensive analysis, additional InvestingPro Tips are available that provide deeper insights into Johnson Controls’ financials and market performance. These tips can be accessed via the InvestingPro dedicated platform.

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