Adient (NYSE:ADNT) Lowered to Sell at Zacks Investment Research

Zacks Investment Research cut shares of Adient (NYSE:ADNT) from a hold rating to a sell rating in a research note published on Wednesday, Zacks.com reports. The firm currently has $42.00 price objective on the stock.

According to Zacks, “A diverse customer base and international presence have created a strong market position for Adient, thereby boosting its prospects. Adient’s focus on streamlining its portfolio to focus on core business bodes well. Adient's fiscal 2021 guidance underscores notable earnings growth driven by recovering industry volumes and positive backlog of new business. Moreover, Adient recently secured a number of new businesses which augurs well for its top line growth. However, Adient expects its 2H’21 results to be negatively impacted by the divestiture of its Shenyang Jinbei Adient Automotive joint venture. Also, capital spending needed to develop new products may mar the firm’s earnings. High debt levels, global chip crunch and unfavorable currency translations are other headwinds. As such, the stock warrants a cautious stance now.”

Several other equities analysts have also recently issued reports on the stock. Deutsche Bank Aktiengesellschaft upped their price target on shares of Adient from $57.00 to $63.00 and gave the company a buy rating in a research report on Thursday, July 15th. Wells Fargo & Company started coverage on shares of Adient in a research report on Wednesday, March 31st. They issued an overweight rating and a $59.00 price target for the company. Finally, Morgan Stanley upped their price objective on shares of Adient from $38.00 to $40.00 and gave the company an underweight rating in a research note on Thursday, May 13th. Three research analysts have rated the stock with a sell rating, one has given a hold rating and eight have assigned a buy rating to the company’s stock. The stock has a consensus rating of Hold and an average target price of $47.18.

ADNT stock opened at $41.24 on Wednesday. The stock’s 50 day moving average is $45.76. The firm has a market cap of $3.89 billion, a PE ratio of 32.83, a price-to-earnings-growth ratio of 0.39 and a beta of 3.28. Adient has a 1 year low of $15.00 and a 1 year high of $53.17. The company has a debt-to-equity ratio of 1.98, a quick ratio of 0.91 and a current ratio of 1.12.

Adient (NYSE:ADNT) last announced its quarterly earnings results on Wednesday, May 5th. The company reported $1.15 earnings per share (EPS) for the quarter, beating the Thomson Reuters’ consensus estimate of $0.59 by $0.56. Adient had a negative net margin of 1.10% and a positive return on equity of 7.12%. The firm had revenue of $3.82 billion during the quarter, compared to analysts’ expectations of $3.60 billion. During the same period in the prior year, the company posted $0.62 EPS. On average, analysts predict that Adient will post 3.46 EPS for the current fiscal year.

In related news, EVP Jerome J. Dorlack sold 4,500 shares of the stock in a transaction on Thursday, May 20th. The shares were sold at an average price of $46.58, for a total transaction of $209,610.00. Following the transaction, the executive vice president now directly owns 117,672 shares of the company’s stock, valued at $5,481,161.76. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, EVP Michel Pierre Rose Berthelin sold 900 shares of the stock in a transaction on Monday, May 17th. The stock was sold at an average price of $48.46, for a total transaction of $43,614.00. Following the transaction, the executive vice president now directly owns 42,257 shares in the company, valued at $2,047,774.22. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 6,150 shares of company stock worth $289,614. Insiders own 0.36% of the company’s stock.

A number of hedge funds and other institutional investors have recently modified their holdings of the stock. Vivid Financial Management Inc. boosted its stake in Adient by 2.1% during the second quarter. Vivid Financial Management Inc. now owns 16,146 shares of the company’s stock worth $730,000 after acquiring an additional 327 shares in the last quarter. New Mexico Educational Retirement Board boosted its stake in Adient by 18.2% during the second quarter. New Mexico Educational Retirement Board now owns 19,500 shares of the company’s stock worth $881,000 after acquiring an additional 3,000 shares in the last quarter. Principal Financial Group Inc. boosted its stake in Adient by 19.8% during the first quarter. Principal Financial Group Inc. now owns 326,469 shares of the company’s stock worth $14,430,000 after acquiring an additional 53,976 shares in the last quarter. Oppenheimer Asset Management Inc. boosted its stake in Adient by 8.8% during the first quarter. Oppenheimer Asset Management Inc. now owns 7,236 shares of the company’s stock worth $320,000 after acquiring an additional 588 shares in the last quarter. Finally, Millennium Management LLC boosted its stake in Adient by 21.4% during the first quarter. Millennium Management LLC now owns 256,050 shares of the company’s stock worth $11,317,000 after acquiring an additional 45,152 shares in the last quarter. 88.73% of the stock is currently owned by institutional investors and hedge funds.

Adient Company Profile

Adient plc designs, manufactures, and markets a range of seating systems and components for passenger cars, commercial vehicles, and light trucks. The company's products include frames, mechanisms, foams, head restraints, armrests, and trim covers. It serves automotive original equipment manufacturers in the Americas, Europe, China, and internationally.

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