BNP Paribas Exane Downgrades Lear (NYSE:LEA) to Neutral

Key Points

• BNP Paribas Exane downgraded Lear from “outperform” to “neutral,” joining a broader analyst consensus of “Hold.” The consensus price target is $145.31.
• Lear reported quarterly EPS of $4.28, beating estimates of $3.98, while revenue rose 3% year over year to $6.21 billion, slightly exceeding expectations.
• Company insiders sold 62,026 shares worth approximately $8.5 million in the last quarter, including sizable sales by the CEO and CFO; institutional investors own 97.04% of Lear’s stock.

Lear (NYSE:LEA - Get Free Report) was downgraded by equities researchers at BNP Paribas Exane from an "outperform" rating to a "neutral" rating in a research report issued on Monday, MarketBeat.com reports.

Several other equities analysts have also weighed in on LEA. Wall Street Zen lowered shares of Lear from a "strong-buy" rating to a "buy" rating in a report on Saturday. Weiss Ratings raised Lear from a "hold (c+)" rating to a "buy (b-)" rating in a research report on Tuesday, June 23rd. Wells Fargo & Company upped their price target on Lear from $133.00 to $137.00 and gave the stock an "equal weight" rating in a research note on Thursday, June 25th. The Goldman Sachs Group reiterated a "neutral" rating and issued a $140.00 price target on shares of Lear in a report on Saturday. Finally, UBS Group reduced their price objective on Lear from $145.00 to $135.00 and set a "neutral" rating for the company in a research note on Tuesday, April 14th. One equities research analyst has rated the stock with a Strong Buy rating, five have given a Buy rating and ten have given a Hold rating to the stock. Based on data from MarketBeat.com, Lear currently has a consensus rating of "Hold" and a consensus price target of $145.31.

Lear Stock Performance

NYSE:LEA opened at $130.63 on Monday. The company has a market capitalization of $6.54 billion, a PE ratio of 12.17, a P/E/G ratio of 0.63 and a beta of 1.25. Lear has a fifty-two week low of $91.67 and a fifty-two week high of $150.33. The company has a debt-to-equity ratio of 0.51, a quick ratio of 1.04 and a current ratio of 1.31. The company has a 50 day simple moving average of $140.07 and a two-hundred day simple moving average of $131.16.

Lear (NYSE:LEA - Get Free Report) last released its earnings results on Friday, July 31st. The auto parts company reported $4.28 earnings per share (EPS) 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 business had revenue of $6.21 billion for the quarter, compared to analyst estimates of $6.15 billion. During the same quarter in the previous year, the business earned $3.06 earnings per share. Lear's revenue for the quarter was up 3.0% on a year-over-year basis. Research analysts anticipate that Lear will post 14.81 earnings per share for the current year.

Insider Buying and Selling at Lear

In other news, CFO Jason M. Cardew sold 5,000 shares of the stock in a transaction that occurred on Tuesday, June 2nd. The stock was sold at an average price of $147.50, for a total value of $737,500.00. Following the completion of the sale, the chief financial officer directly owned 13,241 shares of the company's stock, valued at $1,953,047.50. This represents a 27.41% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, CEO Raymond E. Scott sold 50,000 shares of the firm's stock in a transaction that occurred on Wednesday, June 24th. The shares were 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 owned 49,789 shares in the company, valued at $6,739,936.93. This represents a 50.11% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 62,026 shares of company stock worth $8,498,248 in the last quarter. 1.02% of the stock is owned by insiders.

Hedge Funds Weigh In On Lear

A number of hedge funds have recently bought and sold shares of the company. Jones Financial Companies Lllp raised its holdings in shares of Lear by 5,205.1% in the first quarter. Jones Financial Companies Lllp now owns 7,268 shares of the auto parts company's stock valued at $604,000 after purchasing an additional 7,131 shares during the last quarter. United Services Automobile Association bought a new stake in Lear in the 1st quarter worth about $267,000. Empowered Funds LLC bought a new stake in Lear in the 1st quarter worth about $256,000. EverSource Wealth Advisors LLC increased its stake in Lear by 37.1% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 968 shares of the auto parts company's stock valued at $92,000 after buying an additional 262 shares during the last quarter. Finally, Cerity Partners LLC increased its stake in Lear by 9.5% in the 2nd quarter. Cerity Partners LLC now owns 4,296 shares of the auto parts company's stock valued at $408,000 after buying an additional 372 shares during the last quarter. 97.04% of the stock is owned by hedge funds and other institutional investors.

Lear Company Profile

Lear Corporation NYSE: LEA is a global supplier of automotive seating and electrical distribution systems. The company designs, engineers and manufactures complete seat systems, seat components and power solutions for major vehicle manufacturers. Its electrical business delivers modules and components for battery management, infotainment, body and safety electronics, as well as advanced connectivity and electrification solutions.

The seating division develops lightweight, ergonomic seat structures, trim and mechanisms that address comfort, safety and environmental targets.

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