Lear (NYSE:LEA) Given New $124.00 Price Target at The Goldman Sachs Group

Key Points

• Goldman Sachs cut Lear’s price target to $124 from $140 while maintaining a “neutral” rating, implying roughly 2% upside from the prior close. Analysts overall rate the stock “Hold,” with an average target of $145.
• Lear’s latest quarterly results exceeded expectations, with EPS of $4.28 versus a $3.98 consensus estimate and revenue of $6.21 billion, up 3% year over year.
• The company authorized a $1.5 billion share-repurchase program, allowing it to buy back up to 25.7% of outstanding shares—potentially signaling management views the stock as undervalued.

Lear (NYSE:LEA - Get Free Report) had its price target decreased by equities researchers at The Goldman Sachs Group from $140.00 to $124.00 in a research note issued to investors on Tuesday, Benzinga reports. The brokerage currently has a "neutral" rating on the auto parts company's stock. The Goldman Sachs Group's price target indicates a potential upside of 1.99% from the stock's previous close.

A number of other analysts have also recently weighed in on the stock. BNP Paribas Exane cut shares of Lear from an "outperform" rating to a "neutral" rating in a report on Monday, August 3rd. Royal Bank Of Canada upped their target price on shares of Lear from $138.00 to $143.00 and gave the stock a "sector perform" rating in a research report on Monday, July 13th. Barclays raised their price target on shares of Lear from $150.00 to $155.00 and gave the company an "equal weight" rating in a research note on Thursday, July 9th. Wall Street Zen downgraded Lear from a "buy" rating to a "hold" rating in a research report on Sunday, September 20th. Finally, Wells Fargo & Company increased their price objective on Lear from $137.00 to $138.00 and gave the stock an "equal weight" rating in a report on Monday, August 3rd. One equities research analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating and twelve have assigned a Hold rating to the company's stock. Based on data from MarketBeat, the company presently has an average rating of "Hold" and an average price target of $145.00.

Lear Stock Performance

Shares of NYSE LEA opened at $121.58 on Tuesday. 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 firm's 50-day moving average price is $125.79 and its two-hundred day moving average price is $130.45. Lear has a 52-week low of $96.04 and a 52-week high of $150.33. The stock has a market capitalization of $6.00 billion, a P/E ratio of 11.33, a P/E/G ratio of 0.74 and a beta of 1.29.

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 (EPS) for the quarter, topping the consensus estimate of $3.98 by $0.30. Lear had a return on equity of 14.18% and a net margin of 2.35%.The business had revenue of $6.21 billion for the quarter, compared to the consensus estimate of $6.15 billion. During the same quarter last year, the business posted $3.06 EPS. The business's revenue was up 3.0% on a year-over-year basis. As a group, sell-side analysts forecast that Lear will post 14.88 earnings per share for the current year.

Lear declared that its Board of Directors has initiated a stock repurchase plan on Thursday, September 24th that permits the company to buyback $1.50 billion in outstanding shares. This buyback authorization permits the auto parts company to purchase up to 25.7% of its stock through open market purchases. Stock buyback plans are often an indication that the company's board believes its shares are undervalued.

Insider Activity at Lear

In related news, Director Conrad L. Mallett, Jr. sold 1,646 shares of Lear stock in a transaction dated Thursday, August 6th. The stock was sold at an average price of $121.35, for a total transaction of $199,742.10. Following the transaction, the director directly owned 37 shares of the company's stock, valued at $4,489.95. The trade was a 97.80% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Corporate insiders own 1.02% of the company's stock.

Institutional Trading of Lear

Several institutional investors and hedge funds have recently added to or reduced their stakes in the business. IFP Advisors Inc increased its holdings in Lear by 14.3% in the 2nd quarter. IFP Advisors Inc now owns 624 shares of the auto parts company's stock valued at $84,000 after buying an additional 78 shares during the period. Altshuler Shaham Ltd increased its stake in Lear by 36.5% in the first quarter. Altshuler Shaham Ltd now owns 303 shares of the auto parts company's stock valued at $37,000 after acquiring an additional 81 shares during the last quarter. Versant Capital Management Inc boosted its holdings in shares of Lear by 3.8% in the 2nd quarter. Versant Capital Management Inc now owns 2,260 shares of the auto parts company's stock valued at $303,000 after purchasing an additional 82 shares in the last quarter. Waterfront Wealth Inc. boosted its holdings in shares of Lear by 0.5% in the 1st quarter. Waterfront Wealth Inc. now owns 17,404 shares of the auto parts company's stock valued at $2,107,000 after purchasing an additional 89 shares in the last quarter. Finally, Parkside Financial Bank & Trust increased its stake in shares of Lear by 15.6% in the 2nd quarter. Parkside Financial Bank & Trust now owns 844 shares of the auto parts company's stock valued at $113,000 after purchasing an additional 114 shares during the last quarter. 97.04% of the stock is owned by institutional investors and hedge funds.

Lear Company Profile

Lear Corporation NYSE: LEA is a global automotive technology supplier that designs and manufactures products used by vehicle manufacturers worldwide. The company's principal business areas are seating systems and e-systems, which support the functionality, comfort, safety and connectivity of modern vehicles.

Lear's seating business provides complete seating systems and related components, including seat structures, mechanisms, foam, trim, covers and comfort technologies. Its e-systems business develops electrical distribution systems, connection systems, electronic components and software-enabled technologies that help manage power, data and connectivity within vehicles.

Founded in 1917 and headquartered in Southfield, Michigan, Lear serves automotive manufacturers through operations and facilities across major vehicle-producing regions, including North America, Europe and Asia.

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