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

Johnson Controls International plc (NYSE:JCI) was the target of unusually large options trading on Wednesday. Investors purchased 19,207 call options on the stock. This represents an increase of approximately 1,963% compared to the typical daily volume of 931 call options.

Johnson Controls International Stock Performance

Shares of JCI opened at $103.40 on Thursday. The company has a current ratio of 0.96, a quick ratio of 0.81 and a debt-to-equity ratio of 0.48. The stock has a 50 day moving average of $94.92 and a 200 day moving average of $85.96. Johnson Controls International has a 12 month low of $64.31 and a 12 month high of $105.19. The company has a market capitalization of $68.04 billion, a price-to-earnings ratio of 27.57, a PEG ratio of 2.26 and a beta of 1.33.

Johnson Controls International (NYSE:JCI) last released its earnings results on Wednesday, May 7th. The company reported $0.82 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.77 by $0.05. Johnson Controls International had a return on equity of 15.13% and a net margin of 10.19%. The business had revenue of $5.68 billion during the quarter, compared to the consensus estimate of $5.64 billion. During the same period last year, the business posted $0.78 earnings per share. The business’s revenue for the quarter was up 1.4% on a year-over-year basis. As a group, sell-side 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 initiated a stock buyback plan on Friday, June 13th that allows the company to buyback $9.00 billion in shares. This buyback authorization allows the company to buy up to 13.4% of its shares through open market purchases. Shares buyback plans are usually a sign that the company’s board believes its shares are undervalued.

Johnson Controls International Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Friday, July 18th. Stockholders of record on Monday, June 23rd will be issued a $0.37 dividend. The ex-dividend date is Monday, June 23rd. This represents a $1.48 annualized dividend and a dividend yield of 1.43%. Johnson Controls International’s payout ratio is currently 39.47%.

Insiders Place Their Bets

In other news, VP Nathan D. Manning sold 1,422 shares of the stock in a transaction that occurred on Tuesday, April 1st. The stock was sold at an average price of $79.72, for a total value of $113,361.84. Following the completion of the sale, the vice president now directly owns 145,502 shares of the company’s stock, valued at $11,599,419.44. This represents a 0.97% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, CFO Marc Vandiepenbeeck sold 28,289 shares of the stock in a transaction that occurred on Thursday, May 8th. The stock was sold at an average price of $90.92, for a total value of $2,572,035.88. Following the completion of the sale, the chief financial officer now directly owns 147,673 shares of the company’s stock, valued at approximately $13,426,429.16. This trade represents a 16.08% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 147,555 shares of company stock worth $13,669,414. Corporate insiders own 0.54% of the company’s stock.

Hedge Funds Weigh In On Johnson Controls International

Several hedge funds and other institutional investors have recently added to or reduced their stakes in JCI. Truvestments Capital LLC grew its position in Johnson Controls International by 425.0% during the first quarter. Truvestments Capital LLC now owns 315 shares of the company’s stock worth $25,000 after buying an additional 255 shares in the last quarter. Accent Capital Management LLC purchased a new stake in Johnson Controls International during the first quarter valued at about $26,000. Cornerstone Planning Group LLC lifted its stake in Johnson Controls International by 74.5% during the first quarter. Cornerstone Planning Group LLC now owns 363 shares of the company’s stock worth $28,000 after purchasing an additional 155 shares during the last quarter. SBI Securities Co. Ltd. bought a new stake in Johnson Controls International during the fourth quarter worth about $29,000. Finally, Activest Wealth Management boosted its holdings in shares of Johnson Controls International by 56.4% in the 1st quarter. Activest Wealth Management now owns 369 shares of the company’s stock worth $30,000 after purchasing an additional 133 shares in the last quarter. 90.05% of the stock is currently owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

JCI has been the subject of several analyst reports. Wells Fargo & Company increased their price objective on Johnson Controls International from $100.00 to $130.00 and gave the stock an “overweight” rating in a research note on Wednesday, June 4th. Robert W. Baird increased their price objective on Johnson Controls International from $84.00 to $90.00 and gave the stock a “neutral” rating in a research note on Thursday, May 8th. Vertical Research raised Johnson Controls International from a “hold” rating to a “buy” rating and set a $105.00 price objective for the company in a research note on Thursday, May 8th. JPMorgan Chase & Co. increased their price objective on Johnson Controls International from $81.00 to $98.00 and gave the stock an “overweight” rating in a research note on Friday, May 16th. Finally, Royal Bank Of Canada increased their price objective on Johnson Controls International from $82.00 to $98.00 and gave the stock a “sector perform” rating in a research note on Thursday, May 8th. Nine equities research analysts have rated the stock with a hold rating and nine have assigned a buy rating to the stock. According to data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $97.88.

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.