Johnson Controls International Target of Unusually Large Options Trading (NYSE:JCI)

Key Points

• Unusual Options Activity: Johnson Controls International saw a significant increase in options trading, with 19,207 call options purchased, marking a rise of approximately 1,963% compared to the average volume.
• Strong Quarterly Earnings: The company reported an EPS of $1.05 for the quarter, exceeding analyst expectations of $0.99, with revenue reaching $6.05 billion, above estimates of $5.99 billion.
• Stock Repurchase Authorization: Johnson Controls' board has approved a $9.00 billion stock repurchase plan, allowing the company to buy back up to 13.4% of its shares, signaling management's belief that the stock is undervalued.

Johnson Controls International plc (NYSE:JCI - Get Free Report) was the recipient of some unusual options trading on Wednesday. Stock investors bought 19,207 call options on the company. Thisrepresentsanincreaseofapproximately1,963% compared to the average volume of 931 call options.

Johnson Controls International Stock Up 1.4%

Johnson Controls International stock opened at $105.9490 on Thursday. The company has a debt-to-equity ratio of 0.50, a current ratio of 0.96 and a quick ratio of 0.81. Johnson Controls International has a fifty-two week low of $67.68 and a fifty-two week high of $112.63. The firm has a fifty day moving average price of $105.72 and a two-hundred day moving average price of $93.14. The firm has a market cap of $69.33 billion, a price-to-earnings ratio of 31.44, a P/E/G ratio of 1.86 and a beta of 1.30.

Johnson Controls International (NYSE:JCI - Get Free Report) last posted its quarterly earnings data on Tuesday, July 29th. The company reported $1.05 EPS for the quarter, topping analysts' consensus estimates of $0.99 by $0.06. Johnson Controls International had a return on equity of 14.71% and a net margin of 9.53%.The business had revenue of $6.05 billion for the quarter, compared to analyst estimates 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. As a group, analysts forecast that Johnson Controls International will post 3.64 earnings per share for the current year.

Johnson Controls International announced that its board has authorized a stock repurchase plan on Friday, June 13th that allows the company to repurchase $9.00 billion in shares. This repurchase authorization allows the company to repurchase up to 13.4% of its shares through open market purchases. Shares repurchase plans are typically a sign that the company's management believes its shares are undervalued.

Johnson Controls International Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Friday, July 18th. Stockholders of record on Monday, June 23rd were issued 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 dividend yield of 1.4%. Johnson Controls International's payout ratio is 43.92%.

Insider Transactions at Johnson Controls International

In related news, VP Anuruddha Rathninde sold 15,000 shares of the business's stock in a transaction that occurred on Friday, June 6th. The stock was sold at an average price of $103.13, for a total value of $1,546,950.00. Following the completion of the sale, the vice president owned 42,574 shares of the company's stock, valued at approximately $4,390,656.62. The trade was a 26.05% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through this link. Also, VP Nathan D. Manning sold 1,422 shares of the stock in a transaction that occurred on Friday, August 1st. The stock was sold at an average price of $103.69, for a total value of $147,447.18. Following the completion of the transaction, the vice president owned 140,881 shares in the company, valued at $14,607,950.89. This represents a 1.00% decrease in their position. The disclosure for this sale can be found here. Insiders sold 19,266 shares of company stock worth $1,986,931 in the last 90 days. Corporate insiders own 0.54% of the company's stock.

Institutional Investors Weigh In On Johnson Controls International

Several hedge funds and other institutional investors have recently modified their holdings of the stock. Truvestments Capital LLC grew its position in Johnson Controls International by 425.0% in the 1st quarter. Truvestments Capital LLC now owns 315 shares of the company's stock worth $25,000 after purchasing an additional 255 shares during the last quarter. Accent Capital Management LLC acquired a new position in shares of Johnson Controls International during the first quarter valued at about $26,000. Cornerstone Planning Group LLC lifted its stake in shares of Johnson Controls International by 74.5% in the first quarter. Cornerstone Planning Group LLC now owns 363 shares of the company's stock valued at $28,000 after buying an additional 155 shares during the period. Caitong International Asset Management Co. Ltd acquired a new stake in Johnson Controls International during the second quarter worth about $28,000. Finally, Activest Wealth Management increased its stake in Johnson Controls International by 56.4% during the first quarter. Activest Wealth Management now owns 369 shares of the company's stock valued at $30,000 after acquiring an additional 133 shares during the period. Institutional investors and hedge funds own 90.05% of the company's stock.

Wall Street Analyst Weigh In

Several research analysts have recently commented on JCI shares. Deutsche Bank Aktiengesellschaft upgraded shares of Johnson Controls International from a "hold" rating to a "buy" rating and increased their price target for the stock from $101.00 to $112.00 in a research note on Monday, May 12th. The Goldman Sachs Group upped their price objective on shares of Johnson Controls International from $103.00 to $116.00 and gave the stock a "buy" rating in a report on Tuesday, July 8th. Jefferies Financial Group restated a "hold" rating and set a $120.00 target price on shares of Johnson Controls International in a report on Thursday, July 24th. Zacks Research upgraded Johnson Controls International to a "hold" rating in a research note on Monday, August 11th. Finally, Oppenheimer lowered Johnson Controls International from an "outperform" rating to a "market perform" rating in a report on Friday, June 20th. Nine research analysts have rated the stock with a Buy rating and ten have given a Hold rating to the company's stock. According to MarketBeat.com, the stock currently has a consensus rating of "Hold" and an average target price of $105.17.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.