Shares of Adient (NYSE:ADNT) have been downgraded from a strong-buy to a hold rating by Zacks Research, as reported on Monday. This decision reflects a cautious outlook from analysts amidst fluctuating stock performance and varying assessments from other financial institutions.
In recent weeks, a number of firms have provided insights into Adient’s market position. On August 7, Wells Fargo & Company raised their target price for Adient from $18.00 to $24.00, assigning an “equal weight” rating. Similarly, Bank of America adjusted its price target from $15.00 to $17.50, but expressed a less favorable view with an “underperform” rating on June 16. Analysts at Barclays also increased their price objective from $18.00 to $25.00, maintaining an “equal weight” rating as of July 16.
Additionally, Cfra Research upgraded Adient from a “moderate sell” to a “hold” rating on August 7, while Citigroup initiated coverage on April 23 with a “neutral” rating and a target price of $14.00. The consensus from nine research analysts now reflects a hold position, with two recommending a sell, according to data from MarketBeat. The average rating for Adient is classified as “Reduce,” with a consensus target price of $21.06.
Stock Performance and Financial Metrics
On Monday, shares of Adient opened at $23.09, representing a slight decline of 0.8%. The stock has experienced a one-year low of $10.04 and a high of $24.25. Currently, Adient’s fifty-day simple moving average is $21.60 and its 200-day simple moving average stands at $16.90. The company boasts a market capitalization of $1.88 billion and a price-to-earnings ratio of -8.71.
In its latest earnings report on August 6, Adient posted earnings per share (EPS) of $0.45, falling short of the consensus estimate of $0.47 by $0.02. The company reported a negative net margin of 1.53% but achieved a positive return on equity of 8.25%. Revenue for the quarter was $3.74 billion, surpassing the consensus estimate of $3.56 billion, and reflecting a year-over-year increase of 0.7%. Analysts project that Adient will post an EPS of 1.76 for the current fiscal year.
Institutional Holdings and Market Outlook
Institutional trading activity indicates significant interest in Adient. Several hedge funds have recently modified their positions in the company. Notably, Point72 Hong Kong Ltd acquired a new position valued at approximately $25,000 in the fourth quarter. The Brooklyn Investment Group increased its stake by an astonishing 23,600.0% during the first quarter, now holding 2,133 shares valued at $27,000 after acquiring an additional 2,124 shares.
Other notable increases include GAMMA Investing LLC, which boosted its stake by 157.5% during the first quarter, and MassMutual Private Wealth & Trust FSB, which grew its holdings by 991.0% in the second quarter, now owning 2,182 shares worth $42,000. Overall, institutional investors and hedge funds own 92.44% of Adient’s stock, indicating strong institutional confidence.
Adient plc specializes in the design, development, manufacturing, and marketing of seating systems and components for various vehicles, including passenger cars and commercial trucks. As the company navigates a complex market landscape, its performance continues to draw attention and scrutiny from investors and analysts alike.
