Johnson Controls (NYSE:JCI) International plc (NYSE:JCI) COO of Global Field Operations, Nathan D. Manning, has sold a total of $231,228 worth of company shares, according to a recent SEC filing. The transactions were conducted on October 1, 2024, and involved the sale of ordinary shares at prices ranging from $77.02 to $77.86.
The filing indicated that Manning sold shares in two separate transactions. In the first transaction, shares were sold at a weighted average price of $77.02, with prices ranging from $76.57 to $77.56. The second transaction saw shares sold at a weighted average price of $77.86, with individual sales prices between $77.60 and $78.12. The exact number of shares sold at each price within these ranges was not disclosed in the filing, but Manning has agreed to provide full information regarding the sales upon request.
Following these transactions, Manning's ownership in Johnson Controls stands at 140,487.86 ordinary shares. The sales were executed pursuant to a Rule 10b5-1 trading plan, which was adopted on January 31, 2024. Rule 10b5-1 plans allow company insiders to establish pre-planned transactions at a time when they are not in possession of material non-public information, providing a defense against accusations of insider trading.
Investors often monitor insider transactions as they provide insights into executives' perspectives on the company's current valuation and future prospects. Johnson Controls, a leading provider of air conditioning, heating equipment, and refrigeration solutions, continues to be a significant player in its industry, and insider sales such as these are closely watched by the market for potential signals.
In other recent news, Johnson Controls International has been making strategic changes, including divesting non-essential businesses and focusing on its primary operations. The company has initiated the sale of its ADT alarms segment, a process that Citi analysts believe aligns with Johnson Controls' strategy to streamline its portfolio. The company has also maintained its tradition of dividend payments, announcing a regular quarterly dividend of $0.37 per share.
In terms of leadership, Johnson Controls is undergoing a transition with the retirement of CEO George Oliver and the appointment of Patrick Decker, former CEO of Xylem (NYSE:XYL), to its Board of Directors. Analysts from various firms have been watching these developments closely. Morgan Stanley (NYSE:MS) initiated coverage on the company with an Overweight rating, RBC Capital upgraded its rating to Sector Perform, and Oppenheimer maintained an Outperform rating.
The company reported a third-quarter organic sales growth of 3% and a segment margin of 17.9%, along with a 10% increase in its backlog, reaching $12.9 billion. These recent developments are part of Johnson Controls' ongoing transformation, focusing on becoming a pure-play provider for commercial building solutions, particularly data centers.
InvestingPro Insights
To provide additional context to the recent insider sale by Johnson Controls International plc's (NYSE:JCI) COO Nathan D. Manning, let's examine some key financial metrics and insights from InvestingPro.
As of the latest data, Johnson Controls boasts a market capitalization of $51.15 billion, reflecting its substantial presence in the Building Products industry. The company's stock has shown impressive performance, with a one-year price total return of 50.04% and a year-to-date return of 35.42%. This strong momentum is further evidenced by the stock trading at 97.88% of its 52-week high, indicating investor confidence in the company's prospects.
InvestingPro Tips highlight that Johnson Controls has maintained dividend payments for 54 consecutive years, demonstrating a commitment to shareholder returns. This is particularly noteworthy given that the company operates with a moderate level of debt, suggesting prudent financial management.
However, investors should note that the stock's P/E ratio stands at 31.98, which could be considered high by some valuation standards. This is reflected in an InvestingPro Tip stating that JCI is trading at a high earnings multiple. The company's revenue growth of 1.19% over the last twelve months as of Q3 2024 indicates modest expansion.
For those interested in a deeper analysis, InvestingPro offers 11 additional tips for Johnson Controls, providing a more comprehensive view of the company's financial health and market position.
Given Manning's recent stock sale and the company's current valuation metrics, investors may want to closely monitor Johnson Controls' upcoming earnings report, scheduled for November 7, 2024, for further insights into the company's performance and outlook.
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