In a recent transaction, Marc Vandiepenbeeck, the Executive Vice President and Chief Financial Officer of Johnson Controls (NYSE:JCI) International plc (NYSE:JCI), sold shares of the company. The transaction involved a total of 186 ordinary shares at a price of $63.87 each, amounting to a total value of approximately $11,879.
The sale was executed on March 20, 2024, and was conducted under a pre-arranged trading plan, known as a Rule 10b5-1 trading plan, which was adopted on August 8, 2023. Such plans allow company insiders to sell shares over a predetermined period of time to avoid accusations of trading on nonpublic information.
Following the sale, Vandiepenbeeck's remaining stake in Johnson Controls consists of 44,687 shares. The company, recognized for its expertise in air conditioning and heating equipment, as well as commercial and industrial refrigeration equipment, has its shares traded under the ticker symbol JCI on the New York Stock Exchange.
Investors often watch insider transactions for signs about executives' confidence in their company's prospects. However, sales under Rule 10b5-1 plans are pre-scheduled and may not necessarily reflect an insider's current view of the company.
The transaction was disclosed in a Form 4 filing with the Securities and Exchange Commission, which is a requirement for officers, directors, and significant shareholders of public companies to report their transactions in company stock.
InvestingPro Insights
As investors digest the news of Marc Vandiepenbeeck's share sale, Johnson Controls International plc (NYSE:JCI) presents several financial metrics that may provide a broader context. With a market capitalization of $43.7 billion and a P/E ratio that stands at 20.77, the company reflects a substantial presence in the market. However, when looking at the adjusted P/E ratio for the last twelve months as of Q1 2024, it appears more favorable at 16.29, which could indicate a reasonable valuation relative to near-term earnings growth.
Adding to the financial landscape, Johnson Controls has demonstrated a solid revenue growth of 5.15% over the last twelve months leading up to Q1 2024, with a gross profit margin of 33.08% indicating robust profitability. These figures are complemented by a moderate PEG ratio of 0.3, which may suggest that the stock is potentially undervalued based on earnings growth expectations.
Among the InvestingPro Tips for JCI, two particularly stand out in relation to the article. Firstly, the company has raised its dividend for 3 consecutive years and has maintained dividend payments for 54 consecutive years, which could reassure investors of the company's commitment to shareholder returns. This is further supported by a dividend yield of 2.32%, with a dividend growth of 5.71% over the last twelve months as of Q1 2024. Secondly, the stock's recent performance has been strong, with a one-month price total return of 12.59% and a three-month price total return of 16.54%, indicating positive momentum in the short term.
For those seeking more insights, there are additional InvestingPro Tips available, which can be accessed at https://www.investing.com/pro/JCI. Don't forget to use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, which includes a comprehensive list of 10 InvestingPro Tips to help inform your investment decisions.
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