Adient (NYSE: ADNT) has been downgraded by Zacks Research from a strong-buy rating to a hold rating, according to a report published on Monday. This change reflects a cautious outlook on the company as various research analysts reassess their positions on its stock.
Several financial institutions have recently updated their ratings and price targets for Adient. On August 7, Wells Fargo & Company raised its price target from $18.00 to $24.00 while issuing an “equal weight” rating. Similarly, Bank of America adjusted its price target from $15.00 to $17.50 but rated the stock as “underperform” in a report on June 16. Barclays also increased its price objective from $18.00 to $25.00, maintaining an “equal weight” rating in a note released on July 16. Additionally, CFRA Research upgraded its stance from a “moderate sell” to a “hold” rating on August 7. Citigroup initiated coverage on Adient with a “neutral” rating and a $14.00 target price on April 23.
The consensus among analysts indicates that Adient’s stock currently holds an average rating of “Reduce,” with a consensus target price set at $21.06.
Current Stock Performance
As of Monday, shares of Adient opened at $23.08. The stock has experienced a one-year low of $10.04 and a high of $24.25. The company’s fifty-day simple moving average stands at $21.60, while the 200-day simple moving average is $16.90. Adient’s market capitalization is approximately $1.88 billion, with a price-to-earnings ratio of -8.71, a PEG ratio of 0.78, and a beta of 1.72. Its current ratio is 1.12, and the quick ratio is 0.92, with a debt-to-equity ratio of 1.15.
Adient recently reported its quarterly earnings on August 6, revealing earnings per share (EPS) of $0.45, which fell short of the consensus estimate of $0.47 by $0.02. The company recorded a negative net margin of 1.53% but achieved a positive return on equity of 8.25%. Revenue for the quarter reached $3.74 billion, surpassing the consensus estimate of $3.56 billion. This reflects a year-over-year revenue increase of 0.7% from $0.32 EPS reported in the same quarter of the previous year. Analysts project Adient will post 1.76 EPS for the current year.
Institutional Investors’ Activity
Recent movements among institutional investors indicate growing interest in Adient. Point72 Hong Kong Ltd acquired a new position in the company during the fourth quarter, investing approximately $25,000. Brooklyn Investment Group dramatically increased its holdings by 23,600.0% in the first quarter, now owning 2,133 shares valued at $27,000 after acquiring an additional 2,124 shares.
GAMMA Investing LLC also raised its stake by 157.5%, owning 2,235 shares worth $29,000 after a recent purchase of 1,367 shares. MassMutual Private Wealth & Trust FSB saw a significant increase of 991.0%, now holding 2,182 shares valued at $42,000 after acquiring 1,982 shares in the last quarter. Fifth Third Bancorp expanded its holdings by 544.4%, owning 2,133 shares worth $42,000 after purchasing an additional 1,802 shares. Collectively, institutional and hedge fund investors own approximately 92.44% of Adient’s stock.
Adient, headquartered in Dublin, Ireland, specializes in the design, development, manufacturing, and marketing of seating systems and components for passenger cars, commercial vehicles, and light trucks. Its automotive seating solutions encompass complete seating systems, frames, mechanisms, foams, head restraints, armrests, and trim covers.
The developments surrounding Adient illustrate the dynamic nature of the automotive industry as analysts continue to reevaluate the company’s performance in a changing market landscape.