Trading alert: Executive VP and General Counsel of Johnson Controls International John Donofrio has sold shares

We would not blame Johnson Controls International plc (NYSE:JCI) shareholders if they are a little concerned that John Donofrio, Executive VP & General Counsel, recently made about $1.4 million by selling shares at an average price of $70.41. This sale reduced their total holdings by 34%, which is not insignificant, but far from the worst we have ever seen.

Check out our latest analysis for Johnson Controls International

The last 12 months of insider transactions at Johnson Controls International

Notably, this recent sale by John Donofrio is the largest insider sale of Johnson Controls International shares we’ve seen in the last year. This means that an insider wanted to sell some shares even when the share price was just below the current price of $70.60. Generally, we find it discouraging when insiders sell below the current price because it gives the impression that they were happy with a lower valuation. Please note, however, that sellers may have various reasons for selling, so we don’t know for sure what they think of the share price. We note that the largest single sale was only 34% of John Donofrio’s shares.

Johnson Controls International insiders have not purchased any shares in the last year. Below is a visual representation of insider transactions (by companies and individuals) over the last 12 months. If you want to know exactly who sold, for how much and when, just click on the graphic below!

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Insider ownership of Johnson Controls International

Many investors like to check how much of a company is owned by insiders. Typically, we like to see a relatively high level of insider ownership. It’s great to see that insiders at Johnson Controls International own 0.3% of the company, worth about US$152 million. Most shareholders would be happy to see this level of insider ownership, as it suggests that management’s incentives are well aligned with those of other shareholders.

So what does this data say about insiders at Johnson Controls International?

An insider has not purchased any shares of Johnson Controls International in the last three months, but there have been some sales. Looking at the last twelve months, our data shows no insider purchases. The company boasts a high insider ownership, but given the history of share sales, we are a little hesitant. While it is helpful to know what insiders are doing in terms of buying or selling, it is also helpful to know what risks a given company is taking. For example, Johnson Controls International has 4 warning signs (and 1 we’re not so happy with) that we think you should know about.

Naturally Johnson Controls International may not be the best stock to buy. You may want to see this free Collection of high quality companies.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulator. Currently, we only consider open market transactions and private disposals of direct holdings, but not derivative transactions or indirect holdings.

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This Simply Wall St article is of a general nature. We comment solely on the basis of historical data and analyst forecasts, using an unbiased methodology. Our articles do not constitute financial advice. It is not a recommendation to buy or sell any stock and does not take into account your objectives or financial situation. Our goal is to provide you with long-term analysis based on fundamental data. Note that our analysis may not take into account the latest price-sensitive company announcements or qualitative materials. Simply Wall St does not hold any of the stocks mentioned.