Bank of New York Mellon Corp Buys Shares of 487,822 Lear Corporation $LEA

Key Points

• Bank of New York Mellon acquired 487,822 Lear shares during the second quarter, establishing an approximately $65.4 million stake representing 0.99% of the company. Institutional investors collectively own 97.04% of Lear.
• Lear exceeded quarterly expectations, reporting $4.28 in EPS versus the $3.98 consensus and $6.21 billion in revenue, up 3% year over year. The company also declared a $0.77 quarterly dividend, equivalent to a 2.5% yield.
• Analysts maintain a generally cautious outlook, with Lear carrying a consensus “Hold” rating and a $145.23 target price compared with its $124.19 share price. Meanwhile, insiders sold roughly 61,336 shares worth $8.37 million over the past 90 days.

Bank of New York Mellon Corp acquired a new stake in Lear Corporation (NYSE:LEA - Free Report) during the second quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor acquired 487,822 shares of the auto parts company's stock, valued at approximately $65,397,000. Bank of New York Mellon Corp owned about 0.99% of Lear as of its most recent filing with the Securities and Exchange Commission (SEC).

Several other hedge funds and other institutional investors also recently added to or reduced their stakes in LEA. Jones Financial Companies Lllp increased its holdings in Lear by 5,205.1% in the 1st 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 purchased a new stake in shares of Lear in the 1st quarter valued at $267,000. Empowered Funds LLC acquired a new position in Lear during the 1st quarter worth about $256,000. EverSource Wealth Advisors LLC boosted its holdings in Lear by 37.1% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 968 shares of the auto parts company's stock valued at $92,000 after acquiring an additional 262 shares during the period. Finally, Cerity Partners LLC boosted its holdings in Lear by 9.5% during the 2nd quarter. Cerity Partners LLC now owns 4,296 shares of the auto parts company's stock valued at $408,000 after acquiring an additional 372 shares during the period. Institutional investors and hedge funds own 97.04% of the company's stock.

Lear Trading Up 0.4%

NYSE LEA opened at $124.19 on Thursday. Lear Corporation has a 52 week low of $96.04 and a 52 week high of $150.33. The firm has a 50 day moving average of $132.95 and a two-hundred day moving average of $131.32. The company has a quick ratio of 1.04, a current ratio of 1.31 and a debt-to-equity ratio of 0.51. The stock has a market capitalization of $6.13 billion, a PE ratio of 11.57, a price-to-earnings-growth ratio of 0.60 and a beta of 1.25.

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 analysts' consensus estimates of $3.98 by $0.30. The business had revenue of $6.21 billion for the quarter, compared to analyst estimates of $6.15 billion. Lear had a net margin of 2.35% and a return on equity of 14.18%. The company's revenue was up 3.0% on a year-over-year basis. During the same period last year, the business earned $3.06 EPS. As a group, research analysts expect that Lear Corporation will post 14.86 EPS for the current fiscal year.

Lear Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 22nd. Stockholders of record on Wednesday, September 2nd will be given a dividend of $0.77 per share. This represents a $3.08 annualized dividend and a dividend yield of 2.5%. The ex-dividend date of this dividend is Wednesday, September 2nd. Lear's dividend payout ratio is currently 28.70%.

Key Headlines Impacting Lear

Here are the key news stories impacting Lear this week:

• Neutral Sentiment: The most substantive market article covers JOYY and its second-quarter results, including revenue growth and higher advertising-platform revenue. Because JOYY is unrelated to Lear, the report should not materially affect LEA. JOYY Posts Strong Q2, Deep-Learning Ad Platform Revenues Grow 53%
• Neutral Sentiment: Other articles concern Arena REIT, Oura Ring’s potential IPO, 3P Learning, trading technology, and general educational or lifestyle topics. None involves Lear, its automotive customers, production outlook, earnings, or supply-chain conditions, so they offer no direct explanation for LEA’s performance. Arena REIT Faces Tenant Administration

Wall Street Analyst Weigh In

Several analysts have recently issued reports on the stock. Royal Bank Of Canada increased their price target on shares of Lear from $138.00 to $143.00 and gave the stock a "sector perform" rating in a research report on Monday, July 13th. Citigroup lifted their price objective on shares of Lear from $177.00 to $179.00 and gave the company a "buy" rating in a report on Monday, May 4th. BNP Paribas Exane lowered shares of Lear from an "outperform" rating to a "neutral" rating in a report on Monday, August 3rd. TD Cowen raised shares of Lear from a "hold" rating to a "buy" rating and raised their price target for the company from $138.00 to $165.00 in a research report on Tuesday, May 26th. Finally, Wall Street Zen downgraded shares of Lear from a "buy" rating to a "hold" rating in a research note on Saturday, August 22nd. One investment analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating and eleven have assigned a Hold rating to the company. Based on data from MarketBeat, the stock presently has an average rating of "Hold" and a consensus target price of $145.23.

Insider Activity

In related news, CFO Jason M. Cardew sold 5,000 shares of the company's 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 transaction, 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 stock in a transaction that occurred on Wednesday, June 24th. The shares were sold at an average price of $135.37, for a total transaction 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 ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders have sold 61,336 shares of company stock worth $8,367,727. 1.02% of the stock is currently owned by insiders.

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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