In recent activity disclosed in a Form 4 filing with the Securities and Exchange Commission, Oliver George, Chairman and CEO of Johnson Controls International plc (NYSE:JCI), a $58.85 billion market cap building products company trading near its 52-week high, executed several transactions involving the company's ordinary shares. According to InvestingPro data, the stock has delivered an impressive 64% return over the past year.
On February 10 and 11, George sold a total of 410,335 shares of Johnson Controls, with prices ranging from $89.06 to $89.83 per share. The total value of these sales amounted to $36.56 million. With the stock currently trading at high earnings multiples and showing overbought signals according to InvestingPro's technical analysis, investors might want to track insider activity patterns more closely.
In addition to the sales, George also acquired shares through the exercise of stock options on both days. He acquired 205,168 shares on February 10 and 148,533 shares on February 11, at an exercise price of $33.39 per share. The total value of these acquisitions was $11.81 million.
Following these transactions, George's direct ownership in Johnson Controls stands at 1,203,892.93 shares.
In other recent news, Johnson Controls International has been in the spotlight due to a series of significant developments. The company recently underwent a significant leadership change with the appointment of Joakim Weidemanis as the new CEO. Weidemanis, who has a successful track record at Danaher (NYSE:DHR)'s Diagnostics business, is expected to contribute positively to Johnson Controls' profit potential.
Simultaneously, the company announced executive reshuffles with Julie Brandt appointed as Vice President and President of Global Field Operations, and Nathan Manning taking over as Vice President and President of Building Solutions North America. These changes are aimed at aligning with the company's strategic direction and enhancing operational efficiency.
On the financial front, UBS analyst Amit Mehrotra upgraded Johnson Controls stock from Neutral to Buy, predicting a 20% upside. The upgrade is based on the premise that the company is poised for tangible progress due to recent strategic divestitures and leadership changes. However, Melius analysts downgraded Johnson Controls stock from Buy to Hold, reflecting concerns over future price-to-earnings ratios.
These recent developments underscore the potential for Johnson Controls to enact structural changes necessary to enhance its margins. While UBS anticipates the company's earnings per share could reach $6 by fiscal year 2028, Melius analysts express broader apprehensions regarding the sustainability of the current capital expenditure trend, particularly in the context of AI investments.
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