We wouldn't blame Johnson Controls International plc (NYSE:JCI) shareholders if they were a little worried about the fact that Lei Schlitz, the President of Global Products and Solutions recently netted about US$3.6m selling shares at an average price of US$153. Probably the most concerning element of the whole transaction is that the disposal amounted to 61% of their entire holding.

Johnson Controls International Insider Transactions Over The Last Year

Notably, that recent sale by President of Global Products and Solutions Lei Schlitz was not the only time they sold Johnson Controls International shares this year. Earlier in the year, they fetched US$141 per share in a -US$3.7m sale. That means that even when the share price was below the current price of US$155, an insider wanted to cash in some shares. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. It is worth noting that this sale was 98% of Lei Schlitz's holding.

In total, Johnson Controls International insiders sold more than they bought over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

I will like Johnson Controls International better if I see some big insider buys.

Does Johnson Controls International Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Johnson Controls International insiders own about US$193m worth of shares (which is 0.2% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Do The Johnson Controls International Insider Transactions Indicate?

Insiders sold Johnson Controls International shares recently, but they didn't buy any. Zooming out, the longer term picture doesn't give us much comfort. But since Johnson Controls International is profitable and growing, we're not too worried by this. It is good to see high insider ownership, but the insider selling leaves us cautious. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For example - Johnson Controls International has 2 warning signs we think you should be aware of.

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For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.