Johnson Controls (NYSE:JCI) International plc (NYSE:JCI) saw significant insider activity as Chairman and CEO Oliver George sold shares valued at approximately $15.1 million. The transactions, disclosed in a recent SEC filing, involved the sale of 180,734 ordinary shares. These sales were conducted in two separate transactions on November 22 and November 25, with prices ranging from $83.50 to $84.23 per share.
In addition to the sales, George also exercised stock options, acquiring a total of 180,734 shares at a price of $34.82 each. These exercises were part of a series of transactions that occurred on the same dates as the sales.
Following these transactions, George's direct ownership stands at 1,167,991.71 shares. The filing also indicates indirect ownership through various trusts, with holdings of 152,759 and 69,866 shares, respectively.
In other recent news, Johnson Controls, a global entity in smart, healthy, and sustainable buildings, demonstrated a strong Q4 performance for fiscal 2024. The company reported a 7% increase in orders and a significant 22% year-over-year rise in adjusted earnings per share (EPS) to $1.28. Johnson Controls anticipates continued growth in fiscal 2025, projecting an adjusted EPS of $3.40 to $3.50 and mid-single-digit organic sales growth.
Additionally, the company plans to sell its Residential & Light Commercial segment to Bosch (NS:BOSH) in Q4 2024 and has outlined a $400 million restructuring plan designed to achieve $500 million in annual cost savings. The company's future outlook includes an adjusted segment EBITA margin expansion of over 100 basis points to approximately 14.5% in Q1.
In other recent developments, Johnson Controls expects to see improved margins in its Global Products segment due to operational efficiencies and proactive reinvestment in product development for next-gen data centers. However, the execution of the restructuring plan depends on the timing of the divestiture. The company aims to return 100% of free cash flow to shareholders, with a long-term target exceeding 85%.
InvestingPro Insights
Johnson Controls International plc (NYSE:JCI) has been demonstrating strong market performance, as evidenced by recent insider activity and financial metrics. According to InvestingPro data, JCI's market capitalization stands at an impressive $55.25 billion, reflecting its significant presence in the Building Products industry.
The company's financial health is further underscored by its revenue of $22.95 billion over the last twelve months as of Q4 2024, with a modest growth rate of 2.78%. This solid revenue base supports JCI's ability to maintain its dividend payments, which it has done for an impressive 54 consecutive years, as noted in one of the InvestingPro Tips.
Investors should take note of JCI's strong market performance, with a remarkable 62.74% price total return over the past year. This aligns with another InvestingPro Tip highlighting the company's high return over the last year. Additionally, JCI has shown a robust 17.56% price total return over the past three months, indicating sustained investor confidence.
While the P/E ratio (adjusted) of 31.27 suggests a premium valuation, it's worth considering that 7 analysts have revised their earnings upwards for the upcoming period, as per InvestingPro Tips. This positive sentiment from analysts could potentially justify the higher valuation multiples.
For investors seeking more comprehensive insights, InvestingPro offers 11 additional tips on Johnson Controls International, providing a deeper understanding of the company's financial position and market outlook.
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