Convergence Investment Partners LLC Raises Stock Position in Lear Corporation $LEA

Key Points

• Convergence Investment Partners increased its stake in Lear Corporation by 154.6% in the fourth quarter, ending with 24,720 shares valued at about $2.83 million.
• Lear reported strong quarterly earnings, posting EPS of $3.87 versus estimates of $3.51, while revenue rose 4.7% year over year to $5.82 billion.
• The company also declared a quarterly dividend of $0.77 per share, and analysts currently have a consensus rating of Hold with a target price of $140.54.

Convergence Investment Partners LLC boosted its holdings in Lear Corporation (NYSE:LEA - Free Report) by 154.6% in the fourth quarter, according to its most recent filing with the SEC. The institutional investor owned 24,720 shares of the auto parts company's stock after buying an additional 15,010 shares during the period. Convergence Investment Partners LLC's holdings in Lear were worth $2,833,000 as of its most recent SEC filing.

A number of other institutional investors have also bought and sold shares of LEA. Jones Financial Companies Lllp increased its stake 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 worth $604,000 after buying an additional 7,131 shares in the last quarter. United Services Automobile Association purchased a new stake in Lear in the 1st quarter worth $267,000. Empowered Funds LLC purchased a new stake in Lear in the 1st quarter worth $256,000. EverSource Wealth Advisors LLC grew its position in shares of Lear by 37.1% during the second quarter. EverSource Wealth Advisors LLC now owns 968 shares of the auto parts company's stock valued at $92,000 after purchasing an additional 262 shares in the last quarter. Finally, Cerity Partners LLC grew its position in shares of Lear by 9.5% during the second quarter. Cerity Partners LLC now owns 4,296 shares of the auto parts company's stock valued at $408,000 after purchasing an additional 372 shares in the last quarter. Hedge funds and other institutional investors own 97.04% of the company's stock.

Lear Stock Down 4.7%

Shares of NYSE:LEA opened at $132.57 on Friday. The company has a current ratio of 1.33, a quick ratio of 1.05 and a debt-to-equity ratio of 0.51. Lear Corporation has a 12 month low of $86.14 and a 12 month high of $142.84. The company has a 50-day moving average price of $123.96 and a 200 day moving average price of $120.15. The company has a market cap of $6.64 billion, a price-to-earnings ratio of 13.26, a PEG ratio of 0.71 and a beta of 1.21.

Lear (NYSE:LEA - Get Free Report) last announced its quarterly earnings results on Friday, May 1st. The auto parts company reported $3.87 EPS for the quarter, beating analysts' consensus estimates of $3.51 by $0.36. Lear had a net margin of 2.25% and a return on equity of 13.69%. The firm had revenue of $5.82 billion during the quarter, compared to the consensus estimate of $5.84 billion. During the same quarter last year, the firm earned $3.12 EPS. The firm's revenue for the quarter was up 4.7% compared to the same quarter last year. As a group, equities research analysts predict that Lear Corporation will post 14.56 earnings per share for the current year.

Lear Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, June 23rd. Investors of record on Wednesday, June 3rd will be issued a $0.77 dividend. The ex-dividend date of this dividend is Wednesday, June 3rd. This represents a $3.08 dividend on an annualized basis and a dividend yield of 2.3%. Lear's dividend payout ratio (DPR) is presently 30.80%.

Wall Street Analyst Weigh In

A number of research analysts have recently weighed in on LEA shares. Deutsche Bank Aktiengesellschaft set a $133.00 price objective on Lear in a research report on Monday, May 4th. The Goldman Sachs Group raised their price objective on Lear from $115.00 to $131.00 and gave the company a "neutral" rating in a research report on Monday, May 4th. Wells Fargo & Company raised their price objective on Lear from $126.00 to $133.00 and gave the company an "equal weight" rating in a research report on Monday, May 4th. Wall Street Zen upgraded Lear from a "buy" rating to a "strong-buy" rating in a research report on Friday, January 23rd. Finally, Weiss Ratings restated a "hold (c+)" rating on shares of Lear in a research report on Monday, May 4th. One analyst has rated the stock with a Strong Buy rating, three have given a Buy rating and eleven have issued a Hold rating to the company. According to data from MarketBeat.com, the company has a consensus rating of "Hold" and a consensus target price of $140.54.

Insider Buying and Selling at Lear

In related news, SVP Harry Albert Kemp sold 7,000 shares of the stock in a transaction dated Thursday, February 19th. The shares were sold at an average price of $136.31, for a total value of $954,170.00. Following the completion of the transaction, the senior vice president owned 17,423 shares of the company's stock, valued at approximately $2,374,929.13. This trade represents a 28.66% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CFO Jason M. Cardew sold 10,000 shares of the stock in a transaction dated Thursday, February 19th. The shares were sold at an average price of $134.51, for a total transaction of $1,345,100.00. Following the completion of the transaction, the chief financial officer directly owned 22,741 shares of the company's stock, valued at approximately $3,058,891.91. The trade was a 30.54% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 25,264 shares of company stock worth $3,400,687 in the last 90 days. 1.02% of the stock is currently owned by insiders.

Trending Headlines about Lear

Here are the key news stories impacting Lear this week:

• Positive Sentiment: Lear declared a quarterly cash dividend of $0.77 per share, signaling confidence in cash generation and returning capital to shareholders. Lear Declares Quarterly Cash Dividend
• Positive Sentiment: JPMorgan Chase & Co. raised its price target on Lear to $153 from $152 and reiterated an overweight rating, reinforcing a bullish outlook for the stock. JPMorgan raises Lear price target
• Positive Sentiment: Barclays also lifted its price target on Lear to $150 from $140, suggesting analysts see more upside after the company’s recent earnings report. Barclays raises its price target on Lear Corporation
• Neutral Sentiment: Recent coverage also highlighted Lear as strengthening within the Russell 1000 and as a notable EV supply-chain name, but these items are more descriptive than immediately market-moving.
• Neutral Sentiment: News about Trump-Xi trade talks could matter for global auto parts sentiment, but the articles provided did not mention any Lear-specific tariffs, supply-chain disruptions, or demand changes.

Lear 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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