Adient plc (NYSE: ADNT) stock fell -3.71% on Tuesday to $41.32 against a previous-day closing price of $42.91. With 1.07 million shares changed hands, the volume of the stock remained heavier than its average volume of 0.83 million shares. During the session, the Auto Parts company that operates in wider Consumer Cyclical sector, reached to the highest price of $42.91 whereas the lowest price it dropped to was $40.93. The 52-week range on ADNT shows that it touched its highest point at $50.22 and its lowest point at $27.15 during that stretch. It currently has a 1-year price target of $41.44. Beta for the stock currently stands at 2.74.
Price Performance and Earnings:
Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of ADNT was down-trending over the past week, with a drop of -1.50%, but this was up by 16.69% over a month. Three-month performance surged to 25.40% while six-month performance rose 31.93%. The stock lost -5.19% in the past year, while it has gained 19.11% so far this year. A look at the trailing 12-month EPS for ADNT yields -1.27 with Next year EPS estimates of 3.91. For the next quarter, that number is 0.35. This implies an EPS growth rate of -110.90% for this year and 83.11% for next year.
Float and Shares Shorts:
At present, 95.10 million ADNT shares are outstanding with a float of 94.16 million shares on hand for trading. On Oct 13, 2022, short shares totaled 3.87 million, which was 4.08% higher than short shares on Sep 14, 2022. In addition to Mr. Douglas G. Del Grosso as the firm’s Pres, CEO & Director, Mr. Jeffrey M. Stafeil serves as its Exec. VP & CFO.
Through their ownership of 101.65% of ADNT’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 66.54% of ADNT, in contrast to 28.33% held by mutual funds. Shares owned by individuals account for 1.86%. As the largest shareholder in ADNT with 11.63% of the stake, Fidelity Management & Research Co holds 11,033,272 shares worth 11,033,272. A second-largest stockholder of ADNT, Capital Research & Management Co, holds 10,854,564 shares, controlling over 11.44% of the firm’s shares. BlackRock Fund Advisors is the third largest shareholder in ADNT, holding 9,574,571 shares or 10.09% stake. With a 5.13% stake in ADNT, the American Funds Fundamental Invest is the largest stakeholder. A total of 4,867,532 shares are owned by the mutual fund manager. The American Funds Small Cap World Fu, which owns about 4.19% of ADNT stock, is the second-largest Mutual Fund holder. It holds 3,974,801 shares valued at 137.89 million. American Funds Growth Fund of Ame holds 3.62% of the stake in ADNT, owning 3,437,538 shares worth 119.25 million.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for ADNT since 11 analysts follow the stock currently. There are 4 analysts who recommend BUY ratings, while 1 suggest SELL ratings. Of the remaining analysts, 4 believe that the stock is worth HOLDING, 1 give it an OVERWEIGHT rating, and 1 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With ADNT analysts setting a high price target of $52.00 and a low target of $29.00, the average target price over the next 12 months is $41.67. Based on these targets, ADNT could surge 25.85% to reach the target high and fall by -29.82% to reach the target low. Reaching the average price target will result in a growth of 0.85% from current levels.
EPS: Estimates vs Actual
It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. ADNT will report FY 2023 earnings on 11/08/2023. Analysts have provided yearly estimates in a range of $2.85 being high and $1.14 being low. For ADNT, this leads to a yearly average estimate of $2.15. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Adient plc surprised analysts by $0.05 when it reported $0.53 EPS against a consensus estimate of $0.48. The surprise factor in the prior quarter was $0.12. Based on analyst estimates, the high estimate for the next quarter is $0.52 and the low estimate is $0.10. The average estimate for the next quarter is thus $0.35.
Summary of Insider Activity:
Insiders traded ADNT stock several times over the past three months with 13 Buys and 24 Sells. In these transactions, 581,649 shares were bought while 327,332 shares were sold. The number of buy transactions has increased to 24 while that of sell transactions has risen to 35 over the past year. The total number of shares bought during that period was 638,114 while 354,948 shares were sold.