Adient (NYSE:ADNT) Stock Sees Unusually High Call Option Buying

Key Points

• Adient saw unusually heavy call-option activity on Tuesday, with 4,241 calls traded—1,098% above its typical volume of 354.
• Institutional investors increased their positions, and funds collectively own 92.44% of Adient’s shares; however, director Peter Carlin sold 7,843 shares, reducing his ownership by 16.8%.
• Adient’s shares fell to $17.02 after the company missed quarterly EPS expectations, while analysts maintained a mixed outlook with a consensus rating of “Hold” and a $24.90 target price.

Adient (NYSE:ADNT - Get Free Report) was the recipient of unusually large options trading on Tuesday. Stock investors bought 4,241 call options on the stock. This is an increase of 1,098% compared to the typical volume of 354 call options.

Insiders Place Their Bets

In other Adient news, Director Peter Carlin sold 7,843 shares of the stock in a transaction on Wednesday, September 2nd. The stock was sold at an average price of $19.25, for a total transaction of $150,977.75. Following the completion of the transaction, the director directly owned 38,835 shares in the company, valued at $747,573.75. This represents a 16.80% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. 0.94% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Adient

Institutional investors and hedge funds have recently made changes to their positions in the stock. Dimensional Fund Advisors LP grew its position in shares of Adient by 5.1% during the 1st quarter. Dimensional Fund Advisors LP now owns 4,384,904 shares of the company's stock valued at $88,614,000 after acquiring an additional 211,843 shares during the period. Arrowstreet Capital Limited Partnership grew its holdings in Adient by 17.2% during the first quarter. Arrowstreet Capital Limited Partnership now owns 2,293,353 shares of the company's stock valued at $46,349,000 after purchasing an additional 336,306 shares during the period. Bank of America Corp DE grew its holdings in Adient by 61.7% during the first quarter. Bank of America Corp DE now owns 792,543 shares of the company's stock valued at $16,017,000 after purchasing an additional 302,538 shares during the period. Empowered Funds LLC increased its position in Adient by 23.5% in the first quarter. Empowered Funds LLC now owns 554,572 shares of the company's stock worth $11,208,000 after buying an additional 105,435 shares during the last quarter. Finally, Healthcare of Ontario Pension Plan Trust Fund raised its stake in shares of Adient by 179.3% in the first quarter. Healthcare of Ontario Pension Plan Trust Fund now owns 527,356 shares of the company's stock valued at $10,658,000 after buying an additional 338,517 shares during the period. Institutional investors and hedge funds own 92.44% of the company's stock.

Adient Stock Performance

Shares of NYSE ADNT traded down $0.28 during midday trading on Tuesday, hitting $17.02. 436,920 shares of the company's stock were exchanged, compared to its average volume of 1,013,473. The company has a quick ratio of 0.91, a current ratio of 1.10 and a debt-to-equity ratio of 1.18. Adient has a 12 month low of $15.91 and a 12 month high of $27.32. The company's 50 day moving average price is $17.92 and its 200 day moving average price is $20.56. The firm has a market capitalization of $1.31 billion, a PE ratio of 28.33, a price-to-earnings-growth ratio of 0.24 and a beta of 1.60.

Adient (NYSE:ADNT - Get Free Report) last announced its earnings results on Wednesday, August 5th. The company reported $0.48 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.56 by ($0.08). Adient had a return on equity of 7.32% and a net margin of 0.32%. The business had revenue of $3.93 billion for the quarter, compared to analyst estimates of $3.71 billion. During the same quarter in the previous year, the company earned $0.45 EPS. The business's revenue for the quarter was up 4.3% on a year-over-year basis. As a group, analysts predict that Adient will post 1.99 earnings per share for the current fiscal year.

Analyst Upgrades and Downgrades

ADNT has been the subject of a number of research reports. Wall Street Zen cut Adient from a "buy" rating to a "hold" rating in a research note on Saturday, August 8th. Morgan Stanley cut their price target on shares of Adient from $22.00 to $21.00 and set an "equal weight" rating on the stock in a research note on Tuesday, August 18th. BNP Paribas Exane upgraded shares of Adient from a "neutral" rating to an "outperform" rating and set a $26.00 price target for the company in a report on Thursday, July 30th. Deutsche Bank Aktiengesellschaft reissued a "buy" rating and set a $28.00 price objective on shares of Adient in a research report on Thursday, August 6th. Finally, JPMorgan Chase & Co. upgraded shares of Adient from a "neutral" rating to an "overweight" rating and dropped their price objective for the stock from $28.00 to $25.00 in a report on Tuesday, September 15th. Seven equities research analysts have rated the stock with a Buy rating, three have given a Hold rating and two have given a Sell rating to the company's stock. According to data from MarketBeat.com, Adient has an average rating of "Hold" and a consensus target price of $24.90.

About Adient

Adient plc NYSE: ADNT is a global automotive supplier specializing in the design, development and manufacture of vehicle seating systems. The company supplies complete seating assemblies as well as components such as seat structures, mechanisms, foam, fabrics, leather and other trim materials.

Adient works with automakers and other automotive customers to provide seating solutions for passenger cars, trucks, sport utility vehicles and commercial vehicles. Its offerings are designed to support vehicle comfort, safety, styling, weight reduction and manufacturing efficiency, with products developed for both traditional and electrified vehicles.

The company was formed in 2016 through the separation of Johnson Controls' automotive seating business.

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