ARGA Investment Management LP Cuts Stock Position in Lear Corporation $LEA

Key Points

• ARGA Investment Management cut its stake in Lear by 20.8%, selling 103,776 shares to hold 395,146 shares (≈$45.28M), equal to ~0.76% of Lear and about 1.2% of ARGA’s portfolio.
• Lear beat Q4 expectations (EPS $3.41 vs. $2.67; revenue $5.99B) but carries an average analyst rating of "Hold" with a consensus target of $134.92, and the stock opened around $125.67 (down ~2.1%).
• Insiders have been net sellers recently (CFO sold 10,000 shares; 25,264 shares sold in the last 90 days) while institutional ownership is ~97.04%, and the company pays a quarterly dividend of $0.77 (annual yield ~2.5%).

ARGA Investment Management LP lessened its stake in shares of Lear Corporation (NYSE:LEA - Free Report) by 20.8% in the 4th quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund owned 395,146 shares of the auto parts company's stock after selling 103,776 shares during the quarter. Lear comprises approximately 1.2% of ARGA Investment Management LP's portfolio, making the stock its 16th biggest position. ARGA Investment Management LP owned about 0.76% of Lear worth $45,284,000 at the end of the most recent reporting period.

Several other large investors have also modified their holdings of the stock. WealthCollab LLC purchased a new position in Lear during the second quarter worth about $28,000. Allworth Financial LP raised its holdings in Lear by 62.6% during the third quarter. Allworth Financial LP now owns 309 shares of the auto parts company's stock worth $31,000 after purchasing an additional 119 shares in the last quarter. Advisory Services Network LLC purchased a new position in Lear during the third quarter worth about $33,000. Quent Capital LLC purchased a new position in Lear during the third quarter worth about $38,000. Finally, Farther Finance Advisors LLC raised its holdings in Lear by 34.0% during the third quarter. Farther Finance Advisors LLC now owns 422 shares of the auto parts company's stock worth $42,000 after purchasing an additional 107 shares in the last quarter. Hedge funds and other institutional investors own 97.04% of the company's stock.

Wall Street Analysts Forecast Growth

Several research analysts recently issued reports on the stock. Royal Bank Of Canada assumed coverage on shares of Lear in a report on Thursday, March 12th. They set a "sector perform" rating and a $135.00 price target for the company. Argus upgraded Lear to a "strong-buy" rating in a research report on Monday, February 9th. Deutsche Bank Aktiengesellschaft reiterated a "hold" rating and issued a $120.00 price objective on shares of Lear in a research report on Friday, April 17th. Wall Street Zen upgraded Lear from a "buy" rating to a "strong-buy" rating in a research report on Friday, January 23rd. Finally, Barclays set a $140.00 price objective on Lear in a research report on Thursday, February 5th. One equities research analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating and eleven have given a Hold rating to the stock. According to data from MarketBeat.com, the stock currently has an average rating of "Hold" and a consensus target price of $134.92.

Lear Trading Down 2.1%

Shares of LEA opened at $125.67 on Tuesday. The company has a debt-to-equity ratio of 0.52, a current ratio of 1.35 and a quick ratio of 1.05. The firm has a 50 day simple moving average of $123.52 and a 200-day simple moving average of $117.43. Lear Corporation has a 1-year low of $82.88 and a 1-year high of $142.84. The stock has a market cap of $6.36 billion, a price-to-earnings ratio of 15.42, a price-to-earnings-growth ratio of 0.82 and a beta of 1.24.

Lear (NYSE:LEA - Get Free Report) last issued its quarterly earnings data on Wednesday, February 4th. The auto parts company reported $3.41 earnings per share for the quarter, topping analysts' consensus estimates of $2.67 by $0.74. Lear had a net margin of 1.88% and a return on equity of 13.40%. The business had revenue of $5.99 billion during the quarter, compared to analysts' expectations of $5.78 billion. During the same period last year, the company posted $2.94 EPS. The company's revenue was up 4.8% on a year-over-year basis. Equities analysts forecast that Lear Corporation will post 14.21 EPS for the current fiscal year.

Lear Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Wednesday, March 25th. Investors of record on Thursday, March 5th were given a dividend of $0.77 per share. This represents a $3.08 dividend on an annualized basis and a yield of 2.5%. The ex-dividend date was Thursday, March 5th. Lear's dividend payout ratio (DPR) is currently 37.79%.

Insider Buying and Selling

In related news, CFO Jason M. Cardew sold 10,000 shares of Lear stock in a transaction dated Thursday, February 19th. The stock was sold at an average price of $134.51, for a total transaction of $1,345,100.00. Following the completion of the sale, the chief financial officer owned 22,741 shares in the company, valued at approximately $3,058,891.91. This trade represents a 30.54% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, VP Marianne Vidershain sold 1,590 shares of Lear stock in a transaction dated Tuesday, February 24th. The stock was sold at an average price of $135.00, for a total value of $214,650.00. Following the sale, the vice president owned 1,862 shares of the company's stock, valued at approximately $251,370. This represents a 46.06% decrease in their position. The SEC filing for this sale provides additional information. In the last 90 days, insiders have sold 25,264 shares of company stock worth $3,400,687. 1.02% of the stock is owned by company insiders.

Key Stories Impacting Lear

Here are the key news stories impacting Lear this week:

• Positive Sentiment: Strong reported results and analyst outlook — Lear’s most recent quarterly report (Feb. 4) beat consensus (Q4 EPS $3.41 vs. $2.67 est.) and revenue topped estimates; revenue was up ~4.8% year‑over‑year and analysts project robust full‑year EPS. LEA stock
• Neutral Sentiment: Analyst/sector positioning — Zacks includes Lear among several auto suppliers likely to beat Q1 results, which supports expectations for another positive earnings print but also keeps the stock tied to broader auto cycle news and peer results. 4 Auto Companies Likely to Beat Earnings Expectations in Q1
• Neutral Sentiment: Technical/financial context — LEA sits above its 50‑day and 200‑day moving averages (50‑day ~$123.52; 200‑day ~$117.43) and trades well above its 12‑month low; valuation is moderate (P/E ~15.4, PEG ~0.82), which could limit upside if growth slows.
• Negative Sentiment: Intraday weakness and margin concerns — The stock is down today with volume running higher than average, suggesting profit‑taking or sector rotation; Lear’s net margin remains slim (~1.9%), leaving results vulnerable to commodity, supply‑chain or demand swings that could pressure forward guidance.

About Lear

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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