Avantax Increases Stake in Johnson Controls by 15% in Q2

Avantax Advisory Services Inc. significantly increased its holdings in Johnson Controls International plc (NYSE: JCI) by 15.1% during the second quarter of 2023. According to the latest 13F filing with the Securities and Exchange Commission, Avantax now owns 28,270 shares of Johnson Controls, following the acquisition of an additional 3,715 shares during this period. The total value of Avantax’s holdings in Johnson Controls reached approximately $2,986,000 at the conclusion of the quarter.

Several other institutional investors have also adjusted their positions in Johnson Controls recently. Truvestments Capital LLC boosted its stake by an impressive 425.0% in the first quarter, now holding 315 shares valued at around $25,000, after purchasing an additional 255 shares. Accent Capital Management LLC established a new position during the first quarter valued at approximately $26,000, while Caitong International Asset Management Co. Ltd. invested about $28,000 in the second quarter. Activest Wealth Management increased its holdings by 56.4%, bringing its total to 369 shares valued at $30,000. Hilltop National Bank also entered the fray with a new stake worth $35,000. Collectively, institutional investors own 90.05% of Johnson Controls’ stock.

Market Performance and Recent Earnings

As of the latest trading session, shares of Johnson Controls opened at $112.96. The company boasts a market capitalization of $69.03 billion and a price-to-earnings ratio of 33.52. Recent financial results show a net margin of 9.53% and a return on equity of 14.71%. For the quarter ending November 5, 2023, Johnson Controls reported earnings of $1.26 per share, surpassing analysts’ expectations of $1.20 by $0.06. Revenue for the quarter was $6.44 billion, exceeding the consensus estimate of $6.31 billion and reflecting a year-on-year increase of 3.1%.

The company has set fiscal year 2026 guidance at $4.55 per share, with first quarter 2026 guidance projected at $0.83. Analysts predict that Johnson Controls will report an average earnings per share of $3.64 for the current year.

Dividend Increase and Insider Activity

In addition to these developments, Johnson Controls recently announced an increase in its quarterly dividend. Shareholders received a dividend of $0.40 per share on October 17, 2023, with the ex-dividend date set for September 22, 2023. This marks an increase from the previous quarterly dividend of $0.37 and translates to an annualized dividend of $1.60, yielding approximately 1.4%. The company’s dividend payout ratio stands at 31.43%.

Insider trading activity has also been notable, with Vice President Daniel C. Mcconeghy selling 5,917 shares on September 3, 2023, at an average price of $105.73. The total transaction value was approximately $625,604. Following this sale, Mcconeghy retained 25,005 shares, valued at around $2,643,778. Additionally, Vice President Nathan D. Manning sold 1,422 shares on September 2, 2023, for approximately $149,395. In total, corporate insiders have sold 17,839 shares valued at over $2 million in the past ninety days, while corporate insiders own 0.54% of the company’s stock.

Research analysts have expressed optimism regarding Johnson Controls, with many issuing revised price targets. Deutsche Bank Aktiengesellschaft increased its price objective from $124.00 to $125.00, maintaining a “buy” rating. Mizuho lifted its target from $105.00 to $120.00, advising a “neutral” rating. Other financial institutions, including JPMorgan Chase & Co. and Wolfe Research, also adjusted their price targets upward, with the consensus price target now averaging $121.00.

Johnson Controls International plc, which operates in engineering, manufacturing, and retrofitting building products and systems globally, continues to attract significant interest from investors and analysts alike.