Adient (NYSE:ADNT) Shares Gap Up on Analyst Upgrade

Key Points

• Adient's stock price gapped up to $25.05 following an upgrade from Wells Fargo, with a new price target of $31.00.
• Institutional investors have significantly increased their holdings, with notable increases including Brooklyn Investment Group raising its position by 23,600%.
• The company reported mixed quarterly earnings, missing the consensus EPS estimate of $0.47 but outperforming revenue expectations with $3.74 billion.

Adient (NYSE:ADNT - Get Free Report)'s stock price gapped up prior to trading on Thursday after Wells Fargo & Company upgraded the stock from an equal weight rating to an overweight rating. The stock had previously closed at $24.32, but opened at $25.05. Wells Fargo & Company now has a $31.00 price target on the stock, up from their previous price target of $24.00. Adient shares last traded at $25.08, with a volume of 153,040 shares traded.

Other analysts also recently issued reports about the stock. Stifel Nicolaus initiated coverage on shares of Adient in a report on Thursday, August 21st. They set a "buy" rating and a $27.00 price objective for the company. Bank of America lifted their price objective on Adient from $17.50 to $20.00 and gave the stock an "underperform" rating in a research note on Wednesday, September 10th. Zacks Research cut Adient from a "strong-buy" rating to a "hold" rating in a research report on Monday, August 18th. Cfra Research upgraded shares of Adient from a "moderate sell" rating to a "hold" rating in a report on Thursday, August 7th. Finally, UBS Group raised their price target on shares of Adient from $25.00 to $26.00 and gave the stock a "neutral" rating in a research note on Thursday, August 7th. Two research analysts have rated the stock with a Buy rating, six have given a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat.com, the company has a consensus rating of "Hold" and a consensus price target of $22.63.

Institutional Inflows and Outflows

Hedge funds have recently modified their holdings of the company. Brooklyn Investment Group lifted its position in shares of Adient by 23,600.0% in the first quarter. Brooklyn Investment Group now owns 2,133 shares of the company's stock worth $27,000 after purchasing an additional 2,124 shares in the last quarter. Fifth Third Bancorp raised its stake in shares of Adient by 544.4% during the 2nd quarter. Fifth Third Bancorp now owns 2,133 shares of the company's stock worth $42,000 after purchasing an additional 1,802 shares in the last quarter. MassMutual Private Wealth & Trust FSB raised its stake in shares of Adient by 991.0% during the 2nd quarter. MassMutual Private Wealth & Trust FSB now owns 2,182 shares of the company's stock worth $42,000 after purchasing an additional 1,982 shares in the last quarter. GAMMA Investing LLC boosted its position in Adient by 157.5% during the first quarter. GAMMA Investing LLC now owns 2,235 shares of the company's stock worth $29,000 after purchasing an additional 1,367 shares during the period. Finally, Parallel Advisors LLC raised its holdings in Adient by 13,957.9% in the 2nd quarter. Parallel Advisors LLC now owns 2,671 shares of the company's stock valued at $52,000 after acquiring an additional 2,652 shares during the period. 92.44% of the stock is currently owned by institutional investors.

Adient Trading Up 3.4%

The company has a debt-to-equity ratio of 1.15, a current ratio of 1.12 and a quick ratio of 0.92. The firm has a market capitalization of $2.04 billion, a P/E ratio of -9.52, a price-to-earnings-growth ratio of 0.93 and a beta of 1.76. The business's 50-day moving average is $23.53 and its 200 day moving average is $18.29.

Adient (NYSE:ADNT - Get Free Report) last issued its quarterly earnings results on Wednesday, August 6th. The company reported $0.45 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.47 by ($0.02). The business had revenue of $3.74 billion during the quarter, compared to the consensus estimate of $3.56 billion. Adient had a negative net margin of 1.53% and a positive return on equity of 8.25%. The company's revenue for the quarter was up .7% on a year-over-year basis. During the same quarter in the previous year, the business posted $0.32 EPS. As a group, analysts anticipate that Adient will post 1.76 EPS for the current fiscal year.

About Adient

Adient plc engages in the design, development, manufacture, and market of seating systems and components for passenger cars, commercial vehicles, and light trucks. The company's automotive seating solutions include complete seating systems, frames, mechanisms, foams, head restraints, armrests, and trim covers.

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