Just How Negative is RBC Capital Markets Following Their Downgrade of Johnson Controls Inc (NYSE:JCI)?


Johnson Controls Inc (NYSE:JCI) Receives a Downgrade

The old rating for Johnson Controls Inc (NYSE:JCI) shares of a “Outperform” has been discontinued, as expert analysts at RBC Capital Markets downgraded the current rating for Johnson Controls Inc (NYSE:JCI) shares to a “Sector Perform”.

From a total of 17 analysts covering Johnson Controls Inc. (NYSE:JCI) stock, 12 rate it a ”Buy”, 1 a “Sell”, and 8 a ”Hold”. This means that 57% of the ratings are positive. The highest target price is $68 while the lowest target price is $42. The mean of all analyst targets is $52.94 with a 38.94% above today’s ($39.39) stock price. Johnson Controls Inc. was the topic of 20 analyst reports since July 28, 2015 according to the firm StockzIntelligence Inc. William Blair downgraded shares on December 2 to “Market Perform” rating. William Blair upgraded shares to “Outperform” rating and $50 target share price in a report from a September 30. Normua upgraded JCI stock in a recent report from October 2 to “Buy” rating. Finally, RBC Capital Markets maintained the stock with “Outperform” rating in a report issued on a July 27.

Approximately 2.73M shares of stock traded hands. Johnson Controls Inc (NYSE:JCI) has declined 20.56% since May 12, 2015 and is downtrending. It has underperformed by 16.89% the S&P500.

The overall sentiment of institutions has decreased to 0.92 in Q2 2015. Its down 0.15, from 1.07 in 2015Q2. The ratio dropped, as 98 institutions have sold all the shares of Johnson Controls Inc that they owned while 286 funds have taken shares off the table. 56 funds have purchased shares for the first time while 298 added to their positions. These institutions now hold 501.64 million shares or 0.97% more than the 496.82 million shares they owned in 2015Q2.

The Fund Edinburgh Partners Ltd currently is holding shares equating to 8.28% of its total portfolio in Johnson Controls Inc representing a total of 1.90 million shares. Another fund,Hutchinson Capital Management Ca, is holding a total of 432,716 shares equating to 5.96% of their holdings. Additionally, Kitzinger Lautmann Capital Management Inc has a 396,575 share stake in Johnson Controls Inc which represents 5.8% of their total portfolio. The Fund, Gfs Advisors Llc, based out of Texas, has also built up a stake in the stock, which represents a total of 5.32% of their total portfolio. Finally Trevor Stewart Burton & Jacobsen Inc, a fund which is based in the state of New York reported a total holdings of 83,899 shares.

Johnson Controls, Inc. is a technology company. The company has a market cap of $25.66 billion. The Firm provides products, services and solutions to optimize energy and operational efficiencies of buildings; lead-acid automotive batteries and advanced batteries for hybrid and electric vehicles, and seating and interior systems for automobiles. It has 18.13 P/E ratio. The Firm operates in two divisions: Building Efficiency and Power Solutions.

According to Zacks Investment Research, “Johnson Controls, Inc. is a global market leader in automotive systems and facility management and control. In the automotive market, it is a major supplier of seating and interior systems, and batteries. For non-residential facilities, Johnson Controls provides building control systems and services, energy management and integrated facility management. (Company Press Release)”