Is Johnson Controls Stock Fully Valued After 20% Gains This Year?
Johnson Controls stock (NYSE: JCI) is seeing higher levels after reports of Elliott Management – one of the largest activist funds in the world – building a position of over $1 billion in the company. ((Activist Hedge Fund Elliott Builds $1 Billion-Plus Stake in Johnson Controls Johnson Controls , Crystal Tse, Bloomberg, May 20, 2024)) JCI stock has been rising, with over 20% gains this year.
Johnson Controls Stock Pops on Report Activist Investor Has Built Up Its Stake
Shares are on track for their largest gain in more than a year.
Johnson Controls Stock Rises As Elliott Reportedly Takes $1 Billion-Plus Stake
Shares in Johnson Controls International (JCI) moved higher in premarket trading Monday after Bloomberg reported late Sunday that activist investor Elliott Investment management has taken a significant stake in the industrial conglomerate.
Activist Investor Elliott Acquires Major Stake In Johnson Controls: Report
, an activist investor, has reportedly amassed a significant stake in The development comes as Johnson Controls’ performance has been trailing behind its industry peers. In the past year, Johnson Controls’ shares have climbed over 9%, giving it a market valuation of approximately $46.5 billion, while competitors such as Johnson Controls is a major player in the HVAC control market, which has grown due to the need for cooling data centers and manufacturing facilities for semiconductors and electric vehicles, reported Bloomberg. The company, headquartered in Ireland with main offices in Milwaukee, is under the leadership of CEO George Oliver, who previously led before its merger with Johnson Controls in 2016. The firm has experienced several executive changes since 2020, including the recent appointment of Marc Vandiepenbeeck as CFO. Although Elliott’s specific plans for Johnson Controls remain undisclosed, the hedge fund has a history of driving executive changes in its portfolio companies, the report further noted. Recently, Johnson Controls manufactures a wide range of products, including fire detection, refrigeration, security, and HVAC equipment for commercial buildings. Additionally, Johnson Controls is reportedly considering selling its ADT alarms unit. Earlier this month, Johnson Controls reaffirmed its full-year forecast for adjusted earnings per share between $3.60 and $3.75, after revising the projection downward in January from $3.65 to $3.80. : JCI shares are trading higher by 4.62% at $72.21 in premarket at the last check Monday.
