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In a recent transaction, Nathan D. Manning, the COO of Global Field Operations at Johnson Controls (NYSE:JCI) International plc (NYSE:JCI), sold 1,167 ordinary shares of the company at a price of $72.75 each, totaling $84,899. The sale took place on September 3, 2024, and was executed in accordance with a pre-arranged trading plan.
Johnson Controls, known for its air conditioning and heating equipment as well as commercial and industrial refrigeration equipment, has seen its shares being actively traded by insiders, with the latest transaction by one of its top executives drawing attention. The transaction was carried out under a Rule 10b5-1 trading plan, which was adopted on January 31, 2024, allowing company insiders to set up a predetermined plan to sell stocks at a time when they are not in possession of material non-public information.
Following the sale, Manning still holds a substantial number of shares in the company, with his ownership standing at 143,487.86 shares post-transaction. The details of the transaction were disclosed in a regulatory filing with the Securities and Exchange Commission.
Investors and market watchers often keep a close eye on insider transactions as they can provide insights into an executive's view of the company's future prospects. Johnson Controls has not made any additional comments regarding the transaction.
In other recent news, Johnson Controls International has reported a robust financial performance with a 3% organic sales growth and a segment margin of 17.9% for the third quarter of 2024. RBC Capital Markets has upgraded Johnson Controls stock from Underperform to Sector Perform, citing strategic changes and a leadership shift within the company. The firm also increased the price target for the stock to $69.
The company has also announced the divestiture of its Residential and Light Commercial HVAC and Air Distribution Technologies businesses, aligning with its focus on becoming a pure-play provider for commercial building solutions, particularly data centers. In the midst of these financial developments, Johnson Controls is undergoing significant changes, including the retirement of CEO George Oliver and the appointment of Patrick Decker, former CEO of Xylem (NYSE:XYL), to its Board of Directors.
Oppenheimer has maintained an Outperform rating on Johnson Controls stock and increased the price target to $79, highlighting the company's successful transition into a technology-led solutions and services platform. The firm anticipates a relatively modest adjusted EPS growth for fiscal year 2025, but projects an acceleration in growth for fiscal year 2026. These recent developments underscore Johnson Controls' ongoing transformation, focusing on growth in the service and digital offerings.
InvestingPro Insights
Johnson Controls International plc (NYSE:JCI) has demonstrated a commitment to shareholder returns, as evidenced by its track record of raising dividends. Notably, the company has increased its dividend for three consecutive years and has consistently paid dividends for an impressive 54 years. This level of reliability in dividend payments underscores Johnson Controls' financial stability and dedication to returning value to its shareholders. The company's moderate level of debt further supports this stability, suggesting a balanced approach to financial management.
With a market capitalization of $46.81 billion and a price-to-earnings (P/E) ratio of 29.33, Johnson Controls is a significant entity in the Building Products industry. The adjusted P/E ratio over the last twelve months, as of Q3 2024, stands at a lower 20.37, indicating a potentially more favorable valuation when considering the company's earnings over the past year. This is complemented by a dividend yield of 2.09% as of the latest data, which is competitive within the industry and appealing to income-focused investors.
Johnson Controls' stock performance has also been noteworthy, with a year-to-date price total return of 24.14% as of the latest data, reflecting strong investor confidence. The company's shares are trading at 93.21% of their 52-week high, suggesting a positive market sentiment and potential room for growth. Moreover, analysts predict the company will continue to be profitable this year, which could further enhance investor interest.
For those looking for more in-depth analysis and additional insights, InvestingPro offers a range of tips on Johnson Controls, including its performance and valuation metrics. Presently, there are five more InvestingPro Tips available for JCI, which can be found at https://www.investing.com/pro/JCI.
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