Why Did Adient plc (ADNT) Investors Go Insane?

Investors will get their next glimpse of ADNT’s Q2 earnings on April 26. Analysts are forecasting revenue to suffer decline of -1.5 percent to $4.14B in the next fiscal quarter, while earnings are seen soaring by nearly -64.15 percent to $0.38 per share. History has shown that shares in Adient plc have gone down on 6 different earnings reaction days and are predicted to add 0.08 percent when the company reports upcoming earnings. In last reported earnings results, it earned $1.3 per share, better than the $1.18, adjusted, expected by Thomson Reuters consensus estimate. Revenue was $4.16B, in line with the $4.16B analysts expected. Earnings are estimated to increase by -269.3 percent this year, 53.17 percent next year and continue to increase by 16.2 percent annually for the next 5 years.

Adient plc (ADNT) will probably climb -5.47 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $23 price as 12-month high target. This represents a whopping 16.46 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $17, which represents a return potential of -13.92 percent when compared to the closing price of the stock of $19.75 on Wednesday, February 13. The lowest price target for the stock is $13 — slightly more than -34.18 percent from ADNT’s current share price.

The stock is currently hovering around the first support level of $19.24. Below this, the next support is placed in the zone of $18.73. Till the time, the ADNT stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 54.17 on daily chart, which may remain a cause for concern. If the price breaks below $18.73 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $20.04 mark may result into a pull-back move towards $20.33 level.

On 13th of February, Adient plc (NYSE:ADNT) shares ended higher after a volatile session. The shares accumulated 0.7 points or 3.67 percent at $19.75 with a light trade volume of 2.232 million shares. After opening the session at $19.02, the shares went as high as $19.82 and as low as $19.02, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $1.86 billion and now has 94.42 million shares outstanding. Adient plc (ADNT) stock has gained 7.34 percent of market value in 21 trading days.

ADNT stock has a trailing 3-year beta of 0, offering the possibility of a lower rate of return, but also posing less risk. The portion of a company’s profit allocated to each outstanding share of common stock was -$16.44 a share in the trailing twelve months. The stock’s value has surged 31.14 percent year to date (YTD) against a decline of -69.1 percent in 12 month’s time. The company’s shares still trade -70.57 percent away from its 1-year high of $67.10 and 36.03 percent up from 52-week low of $14.52. The average consensus rating on the company is 3.3, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a hold.

Shares of Adient plc (ADNT) are trading at a P/E ratio of 0 times earnings reported for the past 12 months. The industry ADNT operates in has an average P/E of 13.81. Its P/E ratio went as low as 8.99X and as high as 8.99 over the 5-year span. Further, it is sporting a 0.11 on the Price-to-Sales ratio. Compare this with the industry average P/S of 1.08. 5.1 percent is the gross profit margin for Adient plc and operating margin sits at -0.3 percent. Along with this, the net profit margin is 0 percent.

Let’s take a look at some insider activity at Adient plc (NYSE:ADNT) and see the pattern. The earliest insider trade took place on 03/02/2018. Henderson Frederick A. gathered a total of 1 thousand shares of company at average share price of $60.5. The total for the purchase was set at $60.5 thousand. After this transaction, the Director account balance stood at 6.72 thousand shares. The stock lost -67.36 percent since that insider purchase. On 02/08/2018, Henderson Frederick A., Director, purchased 4 thousand shares at a price per share of $61.78. This added 247.12 thousand shares to the insider’s fortune and the stock saw a -68.03 percent retreat in value since the news became public. This transaction left 5.72 thousand shares in the Director account.

On 12/04/2017, VP, GC and Secretary Ebacher Cathleen A performed a sale transaction worth $204.47 thousand. This sale at $79.13 each has eliminated 2.58 thousand shares from the insider’s portfolio position. Meanwhile, shares have recorded -75.04 percent decrease since the transaction was reported. The insider now is left with 36.1 thousand shares remaining in the account. Ebacher Cathleen A, who performs the VP, GC and Secretary job, sold 9.18 thousand shares for $720.03 thousand. The disposal occurred on 11/28/2017 was priced at $78.4 per share. The share price plunged -74.81 percent since the reporting date. Ebacher Cathleen A now left with a stake of 36.1 thousand ADNT stock worth $713.03 thousand after the insider selling.