Adient (NYSE:ADNT) Trading Down 7.5% - Here's Why

Key Points

• Adient's stock fell by 7.5% during Tuesday's trading, reaching a low of $23.81, with a significant drop in trading volume.
• Recent earnings reports showed a loss in EPS of $0.02 from consensus estimates, despite a 7% year-over-year revenue growth.
• Analysts are mixed on Adient's outlook, with two buy ratings, six holds, and three sells, resulting in an average price target of $22.88.

Shares of Adient (NYSE:ADNT - Get Free Report) dropped 7.5% during mid-day trading on Tuesday . The stock traded as low as $23.81 and last traded at $23.84. Approximately 172,348 shares traded hands during trading, a decline of 87% from the average daily volume of 1,363,388 shares. The stock had previously closed at $25.78.

Wall Street Analyst Weigh In

Several research firms recently issued reports on ADNT. Stifel Nicolaus initiated coverage on Adient in a research note on Thursday, August 21st. They issued a "buy" rating and a $27.00 price target for the company. Weiss Ratings restated a "sell (d)" rating on shares of Adient in a research note on Saturday, September 27th. UBS Group lifted their price objective on shares of Adient from $26.00 to $28.00 and gave the stock a "neutral" rating in a research note on Monday. Barclays increased their target price on shares of Adient from $18.00 to $25.00 and gave the stock an "equal weight" rating in a research report on Wednesday, July 16th. Finally, Morgan Stanley raised their price objective on Adient from $16.00 to $17.00 and gave the stock an "underweight" rating in a research note on Tuesday, August 12th. Two research analysts have rated the stock with a Buy rating, six have assigned a Hold rating and three have issued a Sell rating to the company. According to MarketBeat.com, the company presently has a consensus rating of "Reduce" and an average price target of $22.88.

Adient Stock Performance

The stock has a market cap of $1.92 billion, a price-to-earnings ratio of -8.91, a P/E/G ratio of 0.86 and a beta of 1.77. The company has a debt-to-equity ratio of 1.15, a quick ratio of 0.92 and a current ratio of 1.12. The stock has a fifty day simple moving average of $23.92 and a two-hundred day simple moving average of $18.95.

Adient (NYSE:ADNT - Get Free Report) last released its 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). Adient had a negative net margin of 1.53% and a positive return on equity of 8.25%. The firm had revenue of $3.74 billion during the quarter, compared to analyst estimates of $3.56 billion. During the same quarter in the previous year, the firm earned $0.32 EPS. Adient's quarterly revenue was up .7% on a year-over-year basis. Analysts expect that Adient will post 1.76 EPS for the current fiscal year.

Institutional Investors Weigh In On Adient

A number of large investors have recently bought and sold shares of the stock. Hotchkis & Wiley Capital Management LLC boosted its position in shares of Adient by 22.4% during the 1st quarter. Hotchkis & Wiley Capital Management LLC now owns 4,500,736 shares of the company's stock worth $57,879,000 after purchasing an additional 823,638 shares in the last quarter. Pzena Investment Management LLC raised its holdings in Adient by 7.0% during the second quarter. Pzena Investment Management LLC now owns 4,174,493 shares of the company's stock worth $81,236,000 after buying an additional 272,920 shares during the last quarter. Vanguard Group Inc. lifted its stake in shares of Adient by 1.5% in the first quarter. Vanguard Group Inc. now owns 3,485,241 shares of the company's stock valued at $44,820,000 after buying an additional 53,101 shares in the last quarter. HITE Hedge Asset Management LLC grew its holdings in shares of Adient by 184.2% during the first quarter. HITE Hedge Asset Management LLC now owns 2,320,103 shares of the company's stock valued at $29,837,000 after buying an additional 1,503,817 shares during the last quarter. Finally, Invesco Ltd. raised its holdings in shares of Adient by 14.2% in the 1st quarter. Invesco Ltd. now owns 1,615,317 shares of the company's stock worth $20,773,000 after acquiring an additional 201,276 shares during the last quarter. 92.44% of the stock is currently owned by institutional investors and hedge funds.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.