Lear (NYSE:LEA) Rating Lowered to Hold at Wall Street Zen

Key Points

• Wall Street Zen downgraded Lear to “Hold” from “Buy.” The broader analyst consensus is also “Hold,” with 12 holds, three buys and one strong buy, and an average price target of $143.58.
• Lear shares opened at $116.70, below their 50-day and 200-day moving averages, while the stock has traded between $99.00 and $150.33 over the past year.
• The company recently reported quarterly earnings of $4.28 per share, beating estimates, and authorized a $1.5 billion share-repurchase program covering up to 25.7% of outstanding shares.

Lear (NYSE:LEA - Get Free Report) was downgraded by analysts 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.

Other equities research analysts have also recently issued reports about the stock. The Goldman Sachs Group dropped their price target on shares of Lear from $140.00 to $124.00 and set a "buy" rating on the stock in a research report on Tuesday, October 6th. Wells Fargo & Company lifted their target price on shares of Lear from $137.00 to $138.00 and gave the stock an "equal weight" rating in a research report on Monday, August 3rd. 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. Royal Bank Of Canada reduced their price target on shares of Lear from $143.00 to $139.00 and set a "sector perform" rating for the company in a research report on Monday, October 12th. Finally, BNP Paribas Exane lowered shares of Lear from an "outperform" rating to a "neutral" rating in a research note on Monday, August 3rd. One investment analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating and twelve have given a Hold rating to the company's stock. According to data from MarketBeat, the company presently has a consensus rating of "Hold" and a consensus target price of $143.58.

Lear Trading Down 1.6%

Shares of Lear stock opened at $116.70 on Friday. Lear has a 12-month low of $99.00 and a 12-month high of $150.33. The stock has a market cap of $5.76 billion, a price-to-earnings ratio of 10.88, a PEG ratio of 0.66 and a beta of 1.29. The company has a current ratio of 1.31, a quick ratio of 1.04 and a debt-to-equity ratio of 0.51. The company has a fifty day simple moving average of $123.12 and a 200-day simple moving average of $130.42.

Lear (NYSE:LEA - Get Free Report) last announced its quarterly earnings data 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. The firm had revenue of $6.21 billion during the quarter, compared to analyst estimates of $6.15 billion. Lear had a return on equity of 14.18% and a net margin of 2.35%. Lear's quarterly revenue was up 3.0% on a year-over-year basis. During the same period in the previous year, the company earned $3.06 earnings per share. On average, equities analysts forecast that Lear will post 14.88 EPS for the current fiscal year.

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

Insider Buying and Selling at Lear

In related news, Director Conrad L. Mallett, Jr. sold 1,646 shares of the business's 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 in the company, valued at $4,489.95. The trade was a 97.80% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. Corporate insiders own 1.02% of the company's stock.

Institutional Trading of Lear

Several large investors have recently added to or reduced their stakes in LEA. Signaturefd LLC boosted its position in shares of Lear by 22.7% in the third quarter. Signaturefd LLC now owns 2,779 shares of the auto parts company's stock valued at $328,000 after acquiring an additional 515 shares during the period. Citizens Financial Group Inc. RI increased its position in Lear by 172.8% during the third quarter. Citizens Financial Group Inc. RI now owns 5,757 shares of the auto parts company's stock worth $679,000 after acquiring an additional 3,647 shares during the period. Kendall Capital Management increased its position in Lear by 20.5% during the third quarter. Kendall Capital Management now owns 12,552 shares of the auto parts company's stock worth $1,482,000 after acquiring an additional 2,135 shares during the period. Fifth Third Wealth Advisors LLC raised its stake in Lear by 8.4% in the 3rd quarter. Fifth Third Wealth Advisors LLC now owns 1,999 shares of the auto parts company's stock worth $236,000 after purchasing an additional 155 shares in the last quarter. Finally, Inspire Investing LLC raised its stake in Lear by 5.8% in the 3rd quarter. Inspire Investing LLC now owns 6,458 shares of the auto parts company's stock worth $762,000 after purchasing an additional 352 shares in the last quarter. 97.04% of the stock is owned by institutional investors.

Lear News Roundup

Here are the key news stories impacting Lear this week:

• Positive Sentiment: Analysts expect Lear to report year-over-year earnings growth when it releases results on Friday, providing a potential catalyst for the stock. Lear Reports Next Week: Wall Street Expects Earnings Growth
• Positive Sentiment: Lear is being highlighted as a long-term value stock, which could attract investors given its relatively low valuation and the company’s prior earnings performance, including a recent quarterly earnings beat. Why Lear Is a Top Value Stock for the Long-Term
• Positive Sentiment: The average analyst price target is $143.58, substantially above Lear’s recent trading level, indicating considerable potential upside if earnings and industry conditions meet expectations. Lear Corporation Stock Has Average Price Target of $143.58
• Neutral Sentiment: Lear has appointed Fedele as chief financial officer. The leadership change may be relevant to investors, but the announcement provides no immediate change to earnings guidance or operating outlook. Lear Corporation Appoints Fedele as CFO
• Negative Sentiment: Zacks reports that Lear does not currently show the combination of indicators typically associated with a likely earnings beat. That caution may be weighing on the stock ahead of results, particularly while shares remain below their 50-day and 200-day moving averages. Lear Reports Next Week: Wall Street Expects Earnings Growth

Lear Company Profile

Lear Corporation is a global automotive technology company that designs and manufactures products used in passenger vehicles and commercial vehicles. Its operations are 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 support vehicle power management and connectivity.

The company serves automotive manufacturers and their vehicle programs in major markets across North America, Europe, Asia and other regions.

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