Adient plc (ADNT) has disclosed a new risk, in the Accounting & Financial Operations category.
Claim 70% Off TipRanks This Holiday Season
- Unlock hedge fund-level data and powerful investing tools for smarter, sharper decisions
- Stay ahead of the market with the latest news and analysis and maximize your portfolio's potential
Adient plc faces potential limitations on its ability to utilize pre-change net operating loss carryforwards and other tax attributes due to ownership changes, as outlined in Sections 382 and 383 of the Internal Revenue Code. An ownership change, defined by a cumulative shift exceeding 50 percentage points in ‘5% shareholders’ over three years, could restrict Adient’s capacity to offset post-change income and taxes, impacting its financial health. Such restrictions could adversely affect Adient’s business, financial condition, operating results, and cash flows, posing a significant risk to its fiscal strategy. This risk is compounded by similar state tax laws that could further limit the use of these tax assets.
Overall, Wall Street has a Moderate Buy consensus rating on ADNT stock based on 4 Buys, 1 Sell and 4 Holds.
To learn more about Adient plc’s risk factors, click here.