Stock Traders Buy High Volume of Johnson Controls International Call Options (NYSE:JCI)

Key Points

• Johnson Controls International experienced a significant increase in options trading, with 19,207 call options purchased, marking a 1,963% rise compared to its usual daily volume.
• The company announced a quarterly dividend increase from $0.37 to $0.40 per share, with an annualized yield of 1.5%.
• Johnson Controls International's Board has initiated a $9.00 billion stock repurchase program, allowing the buyback of up to 13.4% of its outstanding shares.

Johnson Controls International plc (NYSE:JCI - Get Free Report) was the recipient of unusually large options trading activity on Wednesday. Traders acquired 19,207 call options on the company. This represents an increase of 1,963% compared to the average volume of 931 call options.

Wall Street Analyst Weigh In

A number of brokerages have commented on JCI. Zacks Research raised shares of Johnson Controls International to a "hold" rating in a research note on Monday, August 11th. Morgan Stanley lifted their target price on shares of Johnson Controls International from $115.00 to $125.00 and gave the stock an "overweight" rating in a research note on Thursday, August 21st. Jefferies Financial Group reaffirmed a "hold" rating and set a $120.00 target price on shares of Johnson Controls International in a research note on Thursday, July 24th. Oppenheimer downgraded shares of Johnson Controls International from an "outperform" rating to a "market perform" rating in a research note on Friday, June 20th. Finally, Royal Bank Of Canada boosted their price target on shares of Johnson Controls International from $112.00 to $114.00 and gave the company a "sector perform" rating in a research note on Wednesday, July 30th. Ten research analysts have rated the stock with a Buy rating and ten have assigned a Hold rating to the company's stock. According to MarketBeat.com, Johnson Controls International has a consensus rating of "Moderate Buy" and an average price target of $107.58.

Johnson Controls International Stock Up 0.2%

JCI traded up $0.20 during trading hours on Friday, hitting $108.68. 7,370,327 shares of the company's stock were exchanged, compared to its average volume of 4,031,907. Johnson Controls International has a 12-month low of $68.03 and a 12-month high of $112.63. The firm has a 50 day moving average of $106.88 and a 200 day moving average of $96.55. The firm has a market cap of $71.12 billion, a P/E ratio of 32.25, a price-to-earnings-growth ratio of 1.93 and a beta of 1.31. The company has a current ratio of 0.96, a quick ratio of 0.81 and a debt-to-equity ratio of 0.50.

Johnson Controls International (NYSE:JCI - Get Free Report) last announced its earnings results on Tuesday, July 29th. The company reported $1.05 earnings per share for the quarter, topping 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 firm had revenue of $6.05 billion for the quarter, compared to the consensus estimate of $5.99 billion. Johnson Controls International has set its FY 2025 guidance at 3.650-3.680 EPS. Q4 2025 guidance at 1.140-1.170 EPS. Analysts predict that Johnson Controls International will post 3.64 EPS for the current fiscal year.

Johnson Controls International announced that its Board of Directors has authorized a stock 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 purchase up to 13.4% of its shares through open market purchases. Shares buyback programs are generally an indication that the company's leadership believes its shares are undervalued.

Johnson Controls International Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, October 17th. Investors of record on Monday, September 22nd will be paid a dividend of $0.40 per share. This represents a $1.60 annualized dividend and a yield of 1.5%. The ex-dividend date of this dividend is Monday, September 22nd. This is an increase from Johnson Controls International's previous quarterly dividend of $0.37. Johnson Controls International's payout ratio is currently 43.92%.

Insider Transactions at Johnson Controls International

In other Johnson Controls International news, VP Nathan D. Manning sold 1,422 shares of Johnson Controls International stock in a transaction dated Tuesday, September 2nd. The shares were sold at an average price of $105.06, for a total transaction of $149,395.32. Following the transaction, the vice president directly owned 139,459 shares of the company's stock, valued at $14,651,562.54. The trade was a 1.01% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, VP Daniel C. Mcconeghy sold 5,917 shares of Johnson Controls International stock in a transaction dated Wednesday, September 3rd. The stock was sold at an average price of $105.73, for a total transaction of $625,604.41. Following the transaction, the vice president directly owned 25,005 shares in the company, valued at $2,643,778.65. This trade represents a 19.14% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 10,183 shares of company stock worth $1,071,501 over the last 90 days. 0.54% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Johnson Controls International

Several large investors have recently added to or reduced their stakes in the business. Norges Bank acquired a new position in Johnson Controls International during the 2nd quarter worth approximately $795,325,000. Nuveen LLC acquired a new position in Johnson Controls International during the 1st quarter worth approximately $219,110,000. Ameriprise Financial Inc. boosted its holdings in shares of Johnson Controls International by 140.8% in the 2nd quarter. Ameriprise Financial Inc. now owns 4,575,414 shares of the company's stock valued at $483,281,000 after buying an additional 2,675,157 shares in the last quarter. AQR Capital Management LLC boosted its holdings in shares of Johnson Controls International by 747.6% in the 1st quarter. AQR Capital Management LLC now owns 2,034,060 shares of the company's stock valued at $159,186,000 after buying an additional 1,794,089 shares in the last quarter. Finally, Jennison Associates LLC boosted its holdings in shares of Johnson Controls International by 232.4% in the 2nd quarter. Jennison Associates LLC now owns 2,124,125 shares of the company's stock valued at $224,350,000 after buying an additional 1,485,007 shares in the last quarter. 90.05% of the stock is owned by hedge funds and other institutional investors.

About Johnson Controls International

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.