Lear (NYSE:LEA) Stock Gets Price Target Trim from Royal Bank Of Canada

Key Points

• Royal Bank of Canada lowered Lear’s price target to $139 from $143 while maintaining a “sector perform” rating, implying 17.65% upside from the prior close.
• Analyst sentiment remains cautious: Lear has an overall “Hold” rating and an average price target of $143.58, with several firms recently cutting targets or downgrading the stock.
• Lear shares rose 0.1% to $118.15, while the company authorized a $1.5 billion share repurchase program covering up to 25.7% of outstanding shares. Its latest quarterly results exceeded earnings and revenue estimates.

Lear (NYSE:LEA - Get Free Report) had its target price lowered by analysts at Royal Bank Of Canada from $143.00 to $139.00 in a research note issued to investors on Monday, Benzinga reports. The firm presently has a "sector perform" rating on the auto parts company's stock. Royal Bank Of Canada's target price would indicate a potential upside of 17.65% from the company's previous close.

Several other analysts also recently commented on LEA. Wall Street Zen downgraded Lear from a "buy" rating to a "hold" rating in a research note on Sunday, September 20th. Barclays cut their target price on Lear from $155.00 to $145.00 and set an "equal weight" rating on the stock in a research report on Friday. JPMorgan Chase & Co. reiterated 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 target on Lear in a research report on Monday, August 3rd. Finally, The Goldman Sachs Group lowered their price target on Lear from $140.00 to $124.00 and set a "buy" rating for the company in a research report on Tuesday, October 6th. One equities research analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating and twelve have given a Hold rating to the company's stock. According to MarketBeat, the stock currently has an average rating of "Hold" and an average price target of $143.58.

Lear Stock Up 0.1%

Shares of LEA traded up $0.12 on Monday, reaching $118.15. The company's stock had a trading volume of 22,342 shares, compared to its average volume of 609,306. The company has a current ratio of 1.31, a quick ratio of 1.04 and a debt-to-equity ratio of 0.51. Lear has a twelve month low of $96.04 and a twelve month high of $150.33. The stock has a market capitalization of $5.83 billion, a PE ratio of 10.99, a PEG ratio of 0.72 and a beta of 1.29. The firm has a fifty day moving average of $123.90 and a 200-day moving average of $130.55.

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. The business had revenue of $6.21 billion for the quarter, compared to analysts' expectations of $6.15 billion. Lear had a net margin of 2.35% and a return on equity of 14.18%. The firm's revenue for the quarter was up 3.0% compared to the same quarter last year. During the same quarter last year, the firm earned $3.06 EPS. Equities analysts predict that Lear will post 14.86 EPS for the current year.

Lear announced that its Board of Directors has initiated a share buyback program on Thursday, September 24th that permits the company to repurchase $1.50 billion in shares. This repurchase authorization permits the auto parts company to purchase up to 25.7% of its stock through open market purchases. Share repurchase programs are generally an indication that the company's leadership believes its stock is undervalued.

Insider Transactions at Lear

In other Lear news, Director Conrad L. Mallett, Jr. sold 1,646 shares of the 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 sale, the director owned 37 shares in the company, valued at approximately $4,489.95. This trade represents a 97.80% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Insiders own 1.02% of the company's stock.

Hedge Funds Weigh In On Lear

Several hedge funds have recently modified their holdings of the company. IFP Advisors Inc grew its holdings in shares of Lear by 14.3% in the second quarter. IFP Advisors Inc now owns 624 shares of the auto parts company's stock valued at $84,000 after acquiring an additional 78 shares in the last quarter. Altshuler Shaham Ltd increased its position 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 valued at $37,000 after acquiring an additional 81 shares during the last quarter. Versant Capital Management Inc increased its position in shares of Lear by 3.8% during the second quarter. Versant Capital Management Inc now owns 2,260 shares of the auto parts company's stock valued at $303,000 after acquiring an additional 82 shares during the last quarter. Waterfront Wealth Inc. lifted its holdings in Lear by 0.5% during the first quarter. Waterfront Wealth Inc. now owns 17,404 shares of the auto parts company's stock worth $2,107,000 after acquiring an additional 89 shares during the period. Finally, Parkside Financial Bank & Trust lifted its holdings in Lear by 15.6% during the second quarter. Parkside Financial Bank & Trust now owns 844 shares of the auto parts company's stock worth $113,000 after acquiring an additional 114 shares during the period. Institutional investors own 97.04% of the company's stock.

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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