Johnson Controls International (JCI) Rating Lowered to Hold at Zacks Investment Research

Johnson Controls International (NYSE:JCI) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a report released on Monday, reports.

According to Zacks, “Johnson Controls actively takes part in acquisitions and mergers to provide customers with world-class technologies through strong complementary brands and channels. Strong cash flow helps the company to pay regular quarterly dividends and engage in share repurchase programs. At the beginning of the month, its board approved an additional share repurchase authorization of $8.5 billion. Over the past three months, shares of Johnson Controls have outperformed the industry it belongs to. However, frequent business divestments are resulting in high separation costs for the company, thus adversely affecting revenues and profits.”

A number of other equities analysts also recently commented on JCI. ValuEngine raised Johnson Controls International from a “sell” rating to a “hold” rating in a research report on Friday, February 8th. OTR Global cut shares of Johnson Controls International to a “positive” rating in a report on Friday, January 18th. Cowen reiterated a “hold” rating and issued a $32.00 price target (down previously from $38.00) on shares of Johnson Controls International in a research note on Friday, February 15th. Finally, Wells Fargo & Co upgraded shares of Johnson Controls International from a “market perform” rating to an “outperform” rating and set a $42.00 price target for the company in a report on Monday, March 18th. Two equities research analysts have rated the stock with a sell rating, nine have issued a hold rating and five have given a buy rating to the stock. Johnson Controls International currently has a consensus rating of “Hold” and an average price target of $38.67.

NYSE:JCI traded up $0.25 during midday trading on Monday, reaching $36.44. The company had a trading volume of 211,406 shares, compared to its average volume of 4,188,597. Johnson Controls International has a 12-month low of $28.30 and a 12-month high of $40.33. The firm has a market cap of $33.03 billion, a PE ratio of 12.88, a price-to-earnings-growth ratio of 1.82 and a beta of 1.07. The company has a current ratio of 1.03, a quick ratio of 0.85 and a debt-to-equity ratio of 0.45.

Johnson Controls International (NYSE:JCI) last issued its quarterly earnings results on Friday, February 1st. The company reported $0.26 earnings per share for the quarter, topping the Thomson Reuters’ consensus estimate of $0.24 by $0.02. The company had revenue of $5.46 billion for the quarter, compared to the consensus estimate of $5.47 billion. Johnson Controls International had a return on equity of 10.73% and a net margin of 7.77%. Johnson Controls International’s revenue was up 3.0% on a year-over-year basis. During the same quarter in the prior year, the business earned $0.54 EPS. Equities analysts forecast that Johnson Controls International will post 1.81 EPS for the current year.

Johnson Controls International announced that its board has authorized a stock repurchase program on Thursday, March 7th that allows the company to buyback $8.50 billion in shares. This buyback authorization allows the company to reacquire up to 26% of its stock through open market purchases. Stock buyback programs are usually an indication that the company’s leadership believes its shares are undervalued.

Hedge funds have recently bought and sold shares of the stock. Triangle Securities Wealth Management grew its stake in Johnson Controls International by 462.0% during the 1st quarter. Triangle Securities Wealth Management now owns 40,444 shares of the company’s stock worth $2,172,000 after buying an additional 33,248 shares during the last quarter. PFS Investments Inc. purchased a new stake in Johnson Controls International in the first quarter valued at approximately $219,000. Tibra Equities Europe Ltd purchased a new stake in Johnson Controls International in the first quarter valued at approximately $513,000. BMT Investment Advisors lifted its stake in Johnson Controls International by 6.4% in the first quarter. BMT Investment Advisors now owns 66,297 shares of the company’s stock valued at $2,449,000 after buying an additional 4,000 shares during the last quarter. Finally, CX Institutional acquired a new stake in shares of Johnson Controls International in the first quarter valued at approximately $2,188,000. Hedge funds and other institutional investors own 90.55% of the company’s stock.

Johnson Controls International Company Profile

Johnson Controls International plc operates as a diversified technology and multi industrial company worldwide. The company operates through Building Technologies & Solutions and Power Solutions segments. The company designs, sells, installs, and services heating, ventilating, and air conditioning systems, controls systems, integrated electronic security systems, and integrated fire detection and suppression systems for commercial, industrial, retail, small business, institutional, and governmental customers; and energy efficiency solutions and technical services, including inspection, scheduled maintenance, and repair and replacement of mechanical and control systems, to non-residential building and industrial applications.

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