Johnson Controls executive sells shares worth over $13k

Johnson Controls (NYSE:JCI) International plc (NYSE:JCI) executive Marc Vandiepenbeeck, who serves as the company's Executive Vice President and Chief Financial Officer, has recently sold a portion of his company shares. The transaction, which took place on August 20, 2024, involved the sale of 186 ordinary shares at a price of $70.50 each, totaling over $13,113.

The sale was conducted under a Rule 10b5-1 trading plan, which Vandiepenbeeck had adopted on August 8, 2023. This type of plan allows company insiders to set up a predetermined schedule for buying or selling shares at a time when they are not in possession of material non-public information, to avoid any accusations of insider trading.

Following the sale, Vandiepenbeeck still holds a substantial number of shares in Johnson Controls, with a total of 84,074.25 shares remaining in his direct ownership. The transaction was reported in a Form 4 filing with the Securities and Exchange Commission, signed by attorney-in-fact Leanne Michels on behalf of Vandiepenbeeck.

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, a leader in the field of air conditioning and heating equipment, continues to be a significant player in the industrial sector.

In other recent news, Johnson Controls International plc has been making significant strides. The company reported a robust financial performance in the third quarter of 2024, with a 3% organic sales growth and a segment margin of 17.9%. Additionally, Johnson Controls has seen a 10% increase in its backlog, reaching $12.9 billion.

RBC Capital Markets and Oppenheimer have adjusted their ratings on the company's stock. RBC upgraded its rating from Underperform to Sector Perform and raised the price target to $69, citing strategic changes and a leadership shift as reasons for the adjustment. Oppenheimer maintained an Outperform rating and increased the price target to $79, highlighting the company's successful transition into a technology-led solutions and services platform.

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. The company is also focusing on becoming a pure-play provider for commercial building solutions, particularly data centers, and has announced the divestiture of its Residential and Light Commercial HVAC and Air Distribution Technologies businesses. These developments demonstrate Johnson Controls' ongoing transformation and strategic realignment towards core growth areas.

InvestingPro Insights

Johnson Controls International plc (NYSE:JCI) has demonstrated financial resilience and growth potential, as reflected in recent InvestingPro data and tips. With a market capitalization of $46.9 billion and a forward-looking P/E ratio for the last twelve months as of Q3 2024 at 22.55, the company stands as a robust investment in the Building Products industry. The company's commitment to shareholder returns is evident, having raised its dividend for three consecutive years and maintained dividend payments for an impressive 54 consecutive years.

Moreover, analysts have shown increasing confidence in Johnson Controls, with 13 analysts revising their earnings estimates upwards for the upcoming period. This positive sentiment is supported by the company's profitability over the last twelve months and a substantial price uptick of 25.94% over the last six months, signaling strong market performance. Additionally, Johnson Controls operates with a moderate level of debt, which is an important consideration for investors looking for financially stable companies.

For those interested in further insights, there are additional InvestingPro Tips available on the InvestingPro platform. These tips delve deeper into the company's financial health and market position, providing valuable information for potential investors. To explore these insights, visit https://www.investing.com/pro/JCI.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.