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

Key Points

• JPMorgan upgraded Adient from “neutral” to “overweight,” prompting shares to gap up from $18.76 to an opening price of $19.30. The firm set a $25 price target.
• Analyst sentiment remains mixed: Adient has a consensus “Hold” rating and an average price target of $26.30, despite several “Buy” or “Outperform” recommendations.
• Adient’s latest quarter showed revenue rising 4.3% year over year to $3.93 billion, but earnings per share of $0.48 fell short of the $0.56 consensus estimate.

Adient (NYSE:ADNT - Get Free Report) gapped up prior to trading on Tuesday after JPMorgan Chase & Co. upgraded the stock from a neutral rating to an overweight rating. The stock had previously closed at $18.76, but opened at $19.30. JPMorgan Chase & Co. now has a $25.00 price target on the stock. Adient shares last traded at $18.9590, with a volume of 77,062 shares changing hands.

A number of other equities analysts have also recently issued reports on the company. Citigroup cut their price target on Adient from $33.00 to $29.00 and set a "buy" rating on the stock in a report on Tuesday, August 11th. Stifel Nicolaus cut their target price on shares of Adient from $28.00 to $26.00 and set a "buy" rating on the stock in a research note on Monday, July 20th. 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. Wall Street Zen cut shares of Adient from a "buy" rating to a "hold" rating in a research report on Saturday, August 8th. Finally, Barclays dropped their price target on Adient from $29.00 to $25.00 and set an "equal weight" rating on the stock in a research note on Monday, August 10th. Seven research analysts have rated the stock with a Buy rating, two have assigned a Hold rating and three have given a Sell rating to the company's stock. Based on data from MarketBeat, the company presently has a consensus rating of "Hold" and an average target price of $26.30.

Insider Transactions at Adient

In other Adient news, Director Peter Carlin sold 7,843 shares of the business's stock in a transaction that occurred 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 sale, the director directly owned 38,835 shares of the company's stock, valued at approximately $747,573.75. The trade was a 16.80% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Company insiders own 0.94% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds have recently modified their holdings of ADNT. Integrated Wealth Concepts LLC purchased a new position in Adient during the 2nd quarter worth $27,000. Corient Private Wealth LP lifted its position in shares of Adient by 5.7% during the 2nd quarter. Corient Private Wealth LP now owns 19,371 shares of the company's stock worth $356,000 after buying an additional 1,038 shares in the last quarter. California State Teachers Retirement System lifted its position in shares of Adient by 1,689.9% during the 2nd quarter. California State Teachers Retirement System now owns 1,699,029 shares of the company's stock worth $31,228,000 after buying an additional 1,604,107 shares in the last quarter. Readystate Asset Management LP purchased a new position in shares of Adient in the 2nd quarter worth approximately $1,078,000. Finally, Public Employees Retirement System of Ohio purchased a new position in shares of Adient in the 2nd quarter worth approximately $94,000. Hedge funds and other institutional investors own 92.44% of the company's stock.

Adient Trading Up 0.6%

The company has a market capitalization of $1.45 billion, a P/E ratio of 31.38, a price-to-earnings-growth ratio of 0.39 and a beta of 1.52. The company has a debt-to-equity ratio of 1.18, a current ratio of 1.10 and a quick ratio of 0.91. The firm has a fifty day moving average price of $19.70 and a 200-day moving average price of $20.69.

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

About Adient

Adient plc NYSE: ADNT is a global automotive supplier that designs, engineers and manufactures automotive seating systems and related components. Its products include complete vehicle seats, seat structures, mechanisms, foam products, trim and other components used in passenger vehicles and commercial vehicles.

The company supplies automakers and supports vehicle programs across major automotive markets, including North America, Europe and Asia. Its operations include product development, engineering, manufacturing and assembly, enabling Adient to provide integrated seating solutions for a range of vehicle platforms and interior designs.

Adient became an independent public company in 2016 after being separated from Johnson Controls' automotive seating business.

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