Johnson Controls International (NYSE:JCI) Sets New 12-Month High Following Better-Than-Expected Earnings

Key Points

• Johnson Controls International's stock reached a new 12-month high at $112.63 before closing at $111.55, with significant volume of over 6.9 million shares traded.
• The company announced a $9 billion stock buyback plan, indicating management's belief that the company's shares are undervalued.
• Analysts have varying ratings on the stock, with a consensus rating of "Hold" and price targets ranging from $104.11 to $130.00 from different brokerages.

Johnson Controls International plc (NYSE:JCI - Get Free Report)'s share price hit a new 52-week high during mid-day trading on Tuesday following a better than expected earnings announcement. The stock traded as high as $112.63 and last traded at $111.55, with a volume of 6984481 shares trading hands. The stock had previously closed at $111.73.

The company reported $1.05 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.99 by $0.06. Johnson Controls International had a net margin of 9.53% and a return on equity of 14.71%. The business had revenue of $6.05 billion for the quarter, compared to analyst estimates of $5.99 billion.

Johnson Controls International Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Friday, July 18th. Investors of record on Monday, June 23rd were given a dividend of $0.37 per share. The ex-dividend date was Monday, June 23rd. This represents a $1.48 dividend on an annualized basis and a yield of 1.4%. Johnson Controls International's payout ratio is presently 39.47%.

Johnson Controls International declared that its board has authorized a share repurchase program on Friday, June 13th that allows the company to buyback $9.00 billion in outstanding shares. This buyback authorization allows the company to repurchase up to 13.4% of its stock through open market purchases. Stock buyback programs are typically a sign that the company's management believes its stock is undervalued.

Analysts Set New Price Targets

A number of equities analysts recently weighed in on JCI shares. Royal Bank Of Canada boosted their price target on shares of Johnson Controls International from $112.00 to $114.00 and gave the stock a "sector perform" rating in a research report on Wednesday. Robert W. Baird boosted their price target on shares of Johnson Controls International from $90.00 to $110.00 and gave the stock a "neutral" rating in a research report on Thursday, July 17th. Oppenheimer lowered shares of Johnson Controls International from an "outperform" rating to a "market perform" rating in a research report on Friday, June 20th. Jefferies Financial Group reiterated a "hold" rating and issued a $120.00 target price on shares of Johnson Controls International in a report on Thursday, July 24th. Finally, UBS Group reiterated a "buy" rating and issued a $116.00 target price (up from $103.00) on shares of Johnson Controls International in a report on Thursday, May 22nd. Ten research analysts have rated the stock with a hold rating and nine have given a buy rating to the company's stock. Based on data from MarketBeat, the stock currently has a consensus rating of "Hold" and an average price target of $105.17.

Insider Activity at Johnson Controls International

In related news, VP Anuruddha Rathninde sold 15,000 shares of the company's stock in a transaction that occurred on Friday, June 6th. The shares were sold at an average price of $103.13, for a total transaction of $1,546,950.00. Following the sale, the vice president directly owned 42,574 shares of the company's stock, valued at $4,390,656.62. This represents a 26.05% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CFO Marc Vandiepenbeeck sold 28,289 shares of the company's stock in a transaction that occurred on Thursday, May 8th. The stock was sold at an average price of $90.92, for a total transaction of $2,572,035.88. Following the sale, the chief financial officer directly owned 147,673 shares in the company, valued at approximately $13,426,429.16. The trade was a 16.08% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last quarter, insiders have sold 146,133 shares of company stock valued at $13,581,520. 0.54% of the stock is owned by insiders.

Institutional Investors Weigh In On Johnson Controls International

Several large investors have recently added to or reduced their stakes in the business. Grove Bank & Trust increased its stake in Johnson Controls International by 3.5% during the 2nd quarter. Grove Bank & Trust now owns 3,117 shares of the company's stock worth $329,000 after buying an additional 106 shares during the period. Keudell Morrison Wealth Management increased its stake in Johnson Controls International by 4.1% during the 2nd quarter. Keudell Morrison Wealth Management now owns 2,697 shares of the company's stock worth $285,000 after buying an additional 107 shares during the period. REAP Financial Group LLC increased its stake in Johnson Controls International by 18.1% during the 2nd quarter. REAP Financial Group LLC now owns 739 shares of the company's stock worth $78,000 after buying an additional 113 shares during the period. TIAA Trust National Association increased its stake in Johnson Controls International by 1.0% during the 1st quarter. TIAA Trust National Association now owns 11,339 shares of the company's stock worth $908,000 after buying an additional 115 shares during the period. Finally, Strategic Blueprint LLC increased its stake in Johnson Controls International by 4.3% during the 1st quarter. Strategic Blueprint LLC now owns 2,980 shares of the company's stock worth $239,000 after buying an additional 123 shares during the period. 90.05% of the stock is owned by hedge funds and other institutional investors.

Johnson Controls International Stock Performance

The firm's 50 day moving average is $104.65 and its two-hundred day moving average is $90.66. The stock has a market capitalization of $69.88 billion, a PE ratio of 31.54, a P/E/G ratio of 1.85 and a beta of 1.31. The company has a debt-to-equity ratio of 0.50, a quick ratio of 0.81 and a current ratio of 0.96.

Johnson Controls International Company Profile

Johnson Controls International plc, together with its subsidiaries, engages in engineering, manufacturing, commissioning, and retrofitting building products and systems in the United States, Europe, the Asia Pacific, and internationally. It operates in four segments: Building Solutions North America, Building Solutions EMEA/LA, Building Solutions Asia Pacific, and Global Products.