Lear (NYSE:LEA) Cut to "Hold" at Wall Street Zen

Key Points

• Wall Street Zen downgraded Lear to “Hold” from “Buy,” joining a broadly cautious analyst consensus. The stock has an average rating of “Hold” and a consensus price target of $146.33.
• Lear shares opened at $120.44, below their 50-day and 200-day moving averages near $130. The stock has declined amid concerns following a JPMorgan downgrade and cautious investor-conference guidance.
• Lear exceeded quarterly expectations, reporting $4.28 in earnings per share versus a $3.98 estimate and $6.21 billion in revenue, up 3% year over year. However, insider selling included CEO Raymond Scott’s sale of 50,000 shares, while institutional investors own 97.04% of the company.

Lear (NYSE:LEA - Get Free Report) was downgraded by equities researchers at Wall Street Zen from a "buy" rating to a "hold" rating in a research report issued to clients and investors on Sunday, Wall Street Zen reports.

A number of other analysts also recently issued reports on LEA. JPMorgan Chase & Co. restated a "neutral" rating and set a $150.00 price target (down from $175.00) on shares of Lear in a report on Tuesday, September 15th. Deutsche Bank Aktiengesellschaft set a $131.00 price objective on Lear in a research report on Monday, August 3rd. TD Cowen upgraded Lear from a "hold" rating to a "buy" rating and lifted their target price for the company from $138.00 to $165.00 in a research report on Tuesday, May 26th. Weiss Ratings cut Lear from a "buy (b-)" rating to a "hold (c+)" rating in a report on Wednesday, September 9th. Finally, Wells Fargo & Company boosted their price objective on shares of Lear from $137.00 to $138.00 and gave the company an "equal weight" rating in a report on Monday, August 3rd. One analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating and twelve have assigned a Hold rating to the company's stock. According to data from MarketBeat.com, the stock has an average rating of "Hold" and a consensus target price of $146.33.

Lear Stock Down 1.9%

Shares of LEA opened at $120.44 on Friday. Lear has a 52-week low of $96.04 and a 52-week high of $150.33. The company has a quick ratio of 1.04, a current ratio of 1.31 and a debt-to-equity ratio of 0.51. The stock has a fifty day simple moving average of $130.35 and a two-hundred day simple moving average of $130.31. The company has a market capitalization of $5.94 billion, a PE ratio of 11.22, a price-to-earnings-growth ratio of 0.74 and a beta of 1.26.

Lear (NYSE:LEA - Get Free Report) last announced its quarterly earnings results on Friday, July 31st. The auto parts company reported $4.28 earnings per share for the quarter, beating the consensus estimate of $3.98 by $0.30. Lear had a net margin of 2.35% and a return on equity of 14.18%. The firm had revenue of $6.21 billion for the quarter, compared to analysts' expectations of $6.15 billion. During the same quarter in the previous year, the company posted $3.06 EPS. The company's revenue was up 3.0% compared to the same quarter last year. As a group, equities analysts forecast that Lear will post 14.86 EPS for the current year.

Insider Activity

In related news, CEO Raymond Scott sold 50,000 shares of Lear stock in a transaction on Wednesday, June 24th. The stock was sold at an average price of $135.37, for a total value of $6,768,500.00. Following the completion of the transaction, the chief executive officer directly owned 49,789 shares in the company, valued at approximately $6,739,936.93. This trade represents a 50.11% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, Director Conrad L. Mallett, Jr. sold 1,646 shares of Lear stock in a transaction dated Thursday, August 6th. The shares were sold at an average price of $121.35, for a total value of $199,742.10. Following the completion of the transaction, the director owned 37 shares of the company's stock, valued at $4,489.95. The trade was a 97.80% decrease in their position. The SEC filing for this sale provides additional information. 1.02% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Lear

Several hedge funds and other institutional investors have recently made changes to their positions in the business. Altshuler Shaham Ltd increased its stake in shares of Lear by 36.5% during the first quarter. Altshuler Shaham Ltd now owns 303 shares of the auto parts company's stock worth $37,000 after acquiring an additional 81 shares during the period. Allworth Financial LP lifted its holdings in shares of Lear by 32.0% in the 4th quarter. Allworth Financial LP now owns 408 shares of the auto parts company's stock valued at $47,000 after buying an additional 99 shares during the period. Eurizon Capital SGR S.p.A. acquired a new position in Lear during the fourth quarter worth $59,000. IFP Advisors Inc grew its holdings in Lear by 62.7% during the fourth quarter. IFP Advisors Inc now owns 524 shares of the auto parts company's stock worth $60,000 after acquiring an additional 202 shares during the period. Finally, Rockefeller Capital Management L.P. raised its position in Lear by 57.4% in the fourth quarter. Rockefeller Capital Management L.P. now owns 576 shares of the auto parts company's stock worth $66,000 after acquiring an additional 210 shares in the last quarter. Institutional investors and hedge funds own 97.04% of the company's stock.

Trending Headlines about Lear

Here are the key news stories impacting Lear this week:

• Neutral Sentiment: JPMorgan reaffirmed a Neutral rating on Lear, indicating that the firm sees a balanced risk-reward profile rather than a clear near-term catalyst. JPMorgan Chase reaffirms Neutral rating for Lear
• Negative Sentiment: A separate report said Lear shares came under pressure following a JPMorgan downgrade and comments tied to the company’s investor conference guidance. The downgrade-related assessment and potentially cautious outlook appear to be the primary reasons for the stock’s weakness, particularly as shares remain below their 50-day and 200-day moving averages. Lear Corporation stock dips after JPMorgan downgrade and conference guidance

About Lear

Lear Corporation is a global automotive technology company that designs and manufactures systems and components used in passenger vehicles. Its business is organized primarily around two areas: seating and E-Systems. Lear supplies complete vehicle seating systems, including seats, structures, mechanisms, foam, covers and related components, as well as electrical distribution systems and other technologies that help manage power, data and connectivity within vehicles.

The company's E-Systems offerings include low- and high-voltage wiring systems, connection systems, battery and power-management solutions, electronic control modules, displays and software-enabled technologies.

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