Analysts have shifted their perspectives on Adient (NYSE: ADNT), with Zacks Research downgrading its rating from a strong-buy to a hold. This change, reported on August 7, 2023, reflects a growing caution among financial analysts regarding the company’s performance in the automotive seating industry.
Several other institutions have also adjusted their outlook on Adient in recent weeks. Notably, Wells Fargo & Company increased its target price from $18.00 to $24.00 while maintaining an “equal weight” rating. This adjustment comes in a research note issued on August 7, 2023. Similarly, Bank of America raised its price target from $15.00 to $17.50 but issued an “underperform” rating on June 16, 2023.
Barclays has shown a more optimistic stance, increasing its price objective from $18.00 to $25.00 and also assigning an “equal weight” rating on July 16, 2023. In addition, Cfra Research shifted Adient’s rating from “moderate sell” to “hold” on the same day as Zacks’ downgrade. Citigroup entered coverage on April 23, 2023, giving the stock a “neutral” rating with a target price of $14.00.
Currently, nine analysts have rated Adient with a hold rating, while two have issued a sell rating. According to MarketBeat, the average rating for the stock is “reduce,” with a consensus target price of $21.06.
Recent Stock Performance and Financial Results
Shares of Adient traded at $23.09 when markets opened on August 7, 2023, reflecting a slight decline of 0.8%. Over the past year, the stock has shown considerable volatility, reaching a low of $10.04 and a high of $24.25. The company’s fifty-day simple moving average stands at $21.60, while its 200-day average is at $16.90.
Adient recently reported its quarterly earnings, revealing earnings per share (EPS) of $0.45, which missed the consensus estimate of $0.47 by $0.02. The firm recorded a revenue of $3.74 billion, exceeding expectations of $3.56 billion. In the same quarter last year, Adient reported an EPS of $0.32. This year, the company’s revenue showed a modest increase of 0.7% year-over-year.
Analysts anticipate that Adient will post an EPS of $1.76 for the current financial year, indicating ongoing challenges despite some positive revenue trends.
Institutional Investment Activity
Recent trading activity indicates a heightened interest from institutional investors in Adient’s stock. Several hedge funds have modified their holdings of ADNT. Point72 Hong Kong Ltd acquired a new position during the fourth quarter, valued at approximately $25,000.
Brooklyn Investment Group significantly increased its position by 23,600.0% in the first quarter, now owning 2,133 shares worth $27,000. GAMMA Investing LLC also raised its stake by 157.5%, now holding 2,235 shares valued at $29,000.
MassMutual Private Wealth & Trust FSB expanded its holdings by 991.0% in the second quarter, resulting in ownership of 2,182 shares worth $42,000. Fifth Third Bancorp increased its stake by 544.4%, owning 2,133 shares valued at $42,000 after further investments.
Currently, institutional investors and hedge funds own approximately 92.44% of Adient’s stock, highlighting strong institutional confidence in the company despite recent downgrades.
Adient plc specializes in the design, development, manufacture, and marketing of seating systems and components for passenger cars, commercial vehicles, and light trucks. Its product offerings include complete seating systems, frames, mechanisms, foams, head restraints, armrests, and trim covers. As the automotive industry continues to evolve, Adient’s ability to navigate market challenges will be critical for its future performance.
