On August 23, 2023, George Oliver, Chairman & CEO of Johnson Controls International PLC (JCI, Financial), sold 103,332 shares of the company. This move is part of a broader trend of insider selling at the company, with 9 insider sells over the past year.
George Oliver has been with Johnson Controls International PLC for several years, leading the company in its mission to create intelligent buildings, efficient energy solutions, integrated infrastructure and next-generation transportation systems that work seamlessly together to deliver on the promise of smart cities and communities. The company, which operates in the industrials sector and the specialty industrial machinery industry, has a market cap of $39.72 billion.
Over the past year, the insider has sold a total of 103,332 shares and has not made any purchases. This recent sale took place at a price of $59.23 per share, giving the stock a market cap of $39.72 billion. The price-earnings ratio is 19.53, higher than the industry median of 14.17 but lower than the company’s historical median price-earnings ratio.
According to the GuruFocus Value, which is an intrinsic value estimate developed by GuruFocus based on historical multiples, a GuruFocus adjustment factor, and future estimates of business performance, Johnson Controls International PLC is modestly undervalued. With a price of $59.23 and a GuruFocus Value of $69.75, the stock has a price-to-GF-Value ratio of 0.85.
Insider selling can sometimes be a bearish signal, as it could indicate that insiders believe the stock is currently overvalued. However, it's important to note that insiders sell shares for various reasons, and it doesn't necessarily indicate a lack of confidence in the company's future. In this case, the insider's selling activity over the past year has not had a significant impact on the stock's price, which has remained relatively stable.
In conclusion, while the insider's recent sale of shares is noteworthy, it does not necessarily indicate a negative outlook for Johnson Controls International PLC. The company's stock appears to be modestly undervalued according to the GuruFocus Value, and its price-earnings ratio is lower than its historical median, suggesting potential upside for investors. As always, potential investors should conduct their own research and consider multiple factors before making investment decisions.
