Adient plc (NYSE:ADNT), a leading automotive parts manufacturer, has reported a notable transaction involving its SVP & Chief Accounting Officer, Gregory Scott Smith. On May 15, Smith sold 1,000 ordinary shares at an average price of $29.47, totaling over $29,000.
The transaction was part of a series of sales that took place at varying prices ranging from $29.46 to $29.50, as detailed in a footnote of the report. This weighted average price reflects the different prices at which the shares were traded. The company has stated that further details about the specific number of shares sold at each price point will be provided upon request.
Following this sale, Smith still holds a significant number of shares in the company. The report indicates that his direct holdings amount to 15,399.424 ordinary shares. Additionally, there are 1,162.61 shares that are indirectly held through the company's 401(k) Savings Plan, as per the information provided by the Plan Administrator.
This recent filing with the SEC showcases a clear picture of the executive's trading activity and current stake in the company. Shareholders and potential investors often monitor such transactions closely as they can provide insights into the executive's view of the company's stock and its future prospects.
InvestingPro Insights
Amid the recent sale of shares by Adient plc's (NYSE:ADNT) SVP & Chief Accounting Officer, Gregory Scott Smith, investors are keen to understand the company's financial health and future prospects. Adient's market capitalization stands at approximately $2.66 billion, reflecting the scale of its operations within the automotive parts industry. The company's Price-to-Earnings (P/E) ratio, a key indicator of market expectations about future earnings, is currently at 17.44. However, when adjusted for the last twelve months as of Q2 2024, the P/E ratio presents a more favorable figure of 11.07, suggesting a potentially undervalued stock relative to its earnings.
Adient's revenue for the last twelve months as of Q2 2024 totaled $15.19 billion, with a modest growth of 3.04%. Despite challenges, the company has managed to maintain a gross profit of $998 million, though its gross profit margin stands at 6.57%, which could indicate pressures on profitability. This aligns with one of the InvestingPro Tips highlighting Adient's struggle with weak gross profit margins.
For those considering an investment, InvestingPro Tips also reveal that management has been actively buying back shares, which could be a sign of confidence in the company's valuation and future. Moreover, analysts predict that Adient will be profitable this year, and the company has indeed been profitable over the last twelve months. It is important to note, however, that 10 analysts have revised their earnings estimates downwards for the upcoming period, which may warrant attention.
Adient's stock has experienced notable volatility, with a 1-year price total return of -14.66%. Yet, the company's shares are currently trading at 63.71% of their 52-week high, possibly offering an entry point for investors who believe in the company's ability to navigate through its challenges. For those seeking deeper insights, InvestingPro Tips provide additional valuable information, with 7 more tips available to help investors make informed decisions. Use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, and gain access to these exclusive insights.
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