Assenagon Asset Management S.A. Purchases 100,912 Shares of Lear Corporation $LEA

Key Points

• Assenagon Asset Management purchased 100,912 Lear shares worth approximately $11.9 million, giving it a 0.20% stake. Institutional investors collectively own 97.04% of the company.
• Lear reported quarterly EPS of $4.28, beating estimates of $3.98, while revenue rose 3% year over year to $6.21 billion. The company also authorized a $1.5 billion share-repurchase program and maintains a quarterly dividend of $0.77.
• Lear shares opened at $119.63, below the analyst consensus price target of $143.58. Despite one buy rating, most analysts rate the stock Hold, with several recently lowering their price targets.

Assenagon Asset Management S.A. acquired a new stake in Lear Corporation (NYSE:LEA - Free Report) in the 3rd quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund acquired 100,912 shares of the auto parts company's stock, valued at approximately $11,911,000. Assenagon Asset Management S.A. owned approximately 0.20% of Lear at the end of the most recent reporting period.

A number of other institutional investors have also added to or reduced their stakes in LEA. Dimensional Fund Advisors LP boosted its stake in shares of Lear by 3.8% during the first quarter. Dimensional Fund Advisors LP now owns 2,943,480 shares of the auto parts company's stock valued at $356,380,000 after purchasing an additional 107,678 shares in the last quarter. Bank of New York Mellon Corp purchased a new stake in Lear during the second quarter worth $65,397,000. Sei Investments Co. boosted its position in Lear by 28.8% during the 1st quarter. Sei Investments Co. now owns 176,084 shares of the auto parts company's stock valued at $21,320,000 after acquiring an additional 39,422 shares in the last quarter. Quantinno Capital Management LP boosted its position in Lear by 14.4% during the 1st quarter. Quantinno Capital Management LP now owns 151,156 shares of the auto parts company's stock valued at $18,302,000 after acquiring an additional 18,990 shares in the last quarter. Finally, Diamond Hill Capital Management LLC Investment Advisor purchased a new position in shares of Lear in the 2nd quarter valued at $17,423,000. Hedge funds and other institutional investors own 97.04% of the company's stock.

Lear Trading Down 0.3%

NYSE LEA opened at $119.63 on Tuesday. Lear Corporation has a 12-month low of $99.00 and a 12-month high of $150.33. The company has a fifty day simple moving average of $123.46 and a two-hundred day simple moving average of $130.54. 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 stock has a market cap of $5.90 billion, a P/E ratio of 11.15, a P/E/G ratio of 0.73 and a beta of 1.29.

Lear (NYSE:LEA - Get Free Report) last issued its earnings results on Friday, July 31st. The auto parts company reported $4.28 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $3.98 by $0.30. Lear had a return on equity of 14.18% and a net margin of 2.35%. The company had revenue of $6.21 billion during the quarter, compared to analyst estimates of $6.15 billion. During the same quarter last year, the business posted $3.06 EPS. The firm's quarterly revenue was up 3.0% on a year-over-year basis. On average, analysts forecast that Lear Corporation will post 14.88 earnings per share for the current year.

Lear announced that its Board of Directors has approved a stock repurchase plan on Thursday, September 24th that allows the company to repurchase $1.50 billion in shares. This buyback authorization allows the auto parts company to reacquire 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 stock is undervalued.

Lear Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Tuesday, September 22nd. Investors of record on Wednesday, September 2nd were given a $0.77 dividend. The ex-dividend date was Wednesday, September 2nd. This represents a $3.08 dividend on an annualized basis and a yield of 2.6%. Lear's dividend payout ratio is currently 28.70%.

Insider Buying and Selling

In related news, Director Conrad L. Mallett, Jr. sold 1,646 shares of the stock in a transaction that occurred on Thursday, August 6th. The shares were sold at an average price of $121.35, for a total value of $199,742.10. Following the transaction, the director owned 37 shares in the company, valued at approximately $4,489.95. This represents a 97.80% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. 1.02% of the stock is currently owned by corporate insiders.

Wall Street Analyst Weigh In

A number of equities analysts have commented on the stock. UBS Group reduced their target price on shares of Lear from $141.00 to $132.00 and set a "neutral" rating for the company in a report on Wednesday, October 7th. Royal Bank Of Canada lowered their price target on shares of Lear from $143.00 to $139.00 and set a "sector perform" rating on the stock in a report on Monday, October 12th. JPMorgan Chase & Co. reaffirmed a "neutral" rating and issued a $150.00 price objective (down from $175.00) on shares of Lear in a research report on Tuesday, September 15th. BNP Paribas Exane downgraded shares of Lear from an "outperform" rating to a "neutral" rating in a research report on Monday, August 3rd. Finally, The Goldman Sachs Group reduced their price objective on shares of Lear from $140.00 to $124.00 and set a "buy" rating for the company in a research note on Tuesday, October 6th. One investment analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating and twelve have assigned 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 price target of $143.58.

About Lear

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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