Adient (NYSE:ADNT) Shares Down 7% - Here's What Happened

Key Points

• Adient shares fell 7% to about $18.61 during Tuesday trading, with the decline occurring amid reduced trading volume.
• Analyst sentiment remains mixed: the consensus rating is “Hold” with an average price target of $26.60, though several firms recently lowered their targets.
• Adient’s latest quarterly results showed revenue of $3.93 billion, exceeding estimates, but adjusted earnings of $0.48 per share missed consensus by $0.08.

Shares of Adient (NYSE:ADNT - Get Free Report) dropped 7% during trading on Tuesday . The company traded as low as $18.63 and last traded at $18.6050. 368,790 shares were traded during mid-day trading, a decline of 64% from the average session volume of 1,012,875 shares. The stock had previously closed at $20.01.

Analyst Upgrades and Downgrades

A number of analysts recently weighed in on ADNT shares. Morgan Stanley dropped their price objective on shares of Adient from $22.00 to $21.00 and set an "equal weight" rating on the stock in a report on Tuesday, August 18th. Citigroup dropped their price target on shares of Adient from $33.00 to $29.00 and set a "buy" rating on the stock in a research note on Tuesday, August 11th. Wall Street Zen downgraded Adient from a "buy" rating to a "hold" rating in a research report on Saturday, August 8th. Stifel Nicolaus lowered their target price on Adient from $28.00 to $26.00 and set a "buy" rating on the stock in a research report on Monday, July 20th. Finally, BNP Paribas Exane raised Adient from a "neutral" rating to an "outperform" rating and set a $26.00 target price on the stock in a research note on Thursday, July 30th. Six investment analysts have rated the stock with a Buy rating, three have issued a Hold rating and three have given a Sell rating to the company. According to MarketBeat.com, the company currently has a consensus rating of "Hold" and an average price target of $26.60.

Adient Price Performance

The business has a 50-day simple moving average of $19.68 and a two-hundred day simple moving average of $20.91. The company has a quick ratio of 0.91, a current ratio of 1.10 and a debt-to-equity ratio of 1.18. The stock has a market capitalization of $1.44 billion, a price-to-earnings ratio of 31.08, a P/E/G ratio of 0.40 and a beta of 1.52.

Adient (NYSE:ADNT - Get Free Report) last posted its quarterly earnings data on Wednesday, August 5th. The company reported $0.48 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 firm had revenue of $3.93 billion during the quarter, compared to the consensus estimate of $3.71 billion. During the same period in the prior year, the firm posted $0.45 EPS. The firm's quarterly revenue was up 4.3% on a year-over-year basis. As a group, research analysts predict that Adient will post 2.02 earnings per share for the current fiscal year.

Insider Activity at Adient

In related news, Director Peter Carlin sold 7,843 shares of the stock in a transaction that occurred on Wednesday, September 2nd. The shares were sold at an average price of $19.25, for a total transaction of $150,977.75. Following the completion of the sale, the director directly owned 38,835 shares of the company's stock, valued at $747,573.75. This represents a 16.80% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. 0.94% of the stock is owned by insiders.

Institutional Investors Weigh In On Adient

A number of institutional investors and hedge funds have recently modified their holdings of ADNT. Royal Bank of Canada raised its holdings in Adient by 11.6% during the 1st quarter. Royal Bank of Canada now owns 22,429 shares of the company's stock worth $289,000 after buying an additional 2,331 shares during the period. AQR Capital Management LLC raised its holdings in shares of Adient by 171.1% during the first quarter. AQR Capital Management LLC now owns 238,913 shares of the company's stock valued at $2,977,000 after acquiring an additional 150,792 shares during the period. Dynamic Technology Lab Private Ltd acquired a new position in Adient in the 1st quarter worth approximately $236,000. First Trust Advisors LP boosted its stake in Adient by 6.8% in the 2nd quarter. First Trust Advisors LP now owns 273,823 shares of the company's stock worth $5,329,000 after purchasing an additional 17,400 shares during the period. Finally, Amundi purchased a new stake in shares of Adient in the second quarter valued at $269,000. 92.44% of the stock is owned by institutional investors and hedge funds.

Adient Company Profile

Adient plc NYSE: ADNT is a leading global supplier of automotive seating and interior components. Established in 2016 through a spin-off from Johnson Controls, the company designs, engineers and manufactures complete seat assemblies, seat structures, mechanisms, foams, textiles, trim and electronics. Adient's product portfolio spans a wide range of seating solutions, from entry-level designs to luxury and high-performance seats, and extends to interior modules such as door panels and center consoles.

Serving major original equipment manufacturers (OEMs) around the world, Adient works closely with automakers to develop lightweight, comfortable and safety-oriented seating systems.

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