Dimensional Fund Advisors LP Raises Stock Holdings in Lear Corporation $LEA

Key Points

• Dimensional Fund Advisors LP increased its Lear Corporation stake by 3.8% in the first quarter, adding 107,678 shares and bringing its total holding to 2.94 million shares worth about $356.4 million.
• Lear’s fundamentals were solid in the latest quarter: the company reported earnings of $3.87 per share, beating estimates, while revenue came in at $5.82 billion and rose 4.7% year over year.
• Insider selling and analyst views were mixed, with the CFO and a director both reducing holdings, while Wall Street’s consensus remains “Hold” with an average price target of $144.62.

Dimensional Fund Advisors LP boosted its holdings in Lear Corporation (NYSE:LEA - Free Report) by 3.8% in the 1st quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund owned 2,943,480 shares of the auto parts company's stock after purchasing an additional 107,678 shares during the quarter. Dimensional Fund Advisors LP owned about 5.88% of Lear worth $356,380,000 at the end of the most recent quarter.

A number of other hedge funds and other institutional investors have also recently made changes to their positions in LEA. M&T Bank Corp increased its position in Lear by 46,707.8% in the 4th quarter. M&T Bank Corp now owns 951,602 shares of the auto parts company's stock valued at $109,054,000 after acquiring an additional 949,569 shares during the period. Norges Bank acquired a new stake in Lear during the 4th quarter worth approximately $82,016,000. Balyasny Asset Management L.P. purchased a new position in shares of Lear in the 2nd quarter valued at approximately $39,656,000. Caisse de depot et placement du Quebec purchased a new position in shares of Lear in the 3rd quarter valued at approximately $40,984,000. Finally, AQR Capital Management LLC increased its holdings in shares of Lear by 34.1% in the fourth quarter. AQR Capital Management LLC now owns 789,745 shares of the auto parts company's stock valued at $90,505,000 after purchasing an additional 200,617 shares during the period. Hedge funds and other institutional investors own 97.04% of the company's stock.

Insider Activity at Lear

In related news, CFO Jason M. Cardew sold 5,000 shares of the firm's stock in a transaction dated Tuesday, June 2nd. The shares were 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 owned 13,241 shares in the company, valued at $1,953,047.50. This trade represents a 27.41% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, Director Conrad L. Mallett, Jr. sold 190 shares of the business's stock in a transaction dated Wednesday, June 10th. The stock was sold at an average price of $141.34, for a total transaction of $26,854.60. Following the sale, the director directly owned 1,683 shares in the company, valued at approximately $237,875.22. This represents a 10.14% decrease in their position. The SEC filing for this sale provides additional information. In the last quarter, insiders sold 62,026 shares of company stock valued at $8,498,248. Company insiders own 1.02% of the company's stock.

Lear Stock Up 1.9%

LEA opened at $142.79 on Wednesday. The company has a debt-to-equity ratio of 0.51, a current ratio of 1.33 and a quick ratio of 1.05. The business has a 50 day simple moving average of $138.70 and a 200-day simple moving average of $129.94. The stock has a market capitalization of $7.15 billion, a P/E ratio of 14.28, a P/E/G ratio of 0.68 and a beta of 1.25. Lear Corporation has a 12 month low of $91.67 and a 12 month high of $150.33.

Lear (NYSE:LEA - Get Free Report) last announced its quarterly earnings data on Friday, May 1st. The auto parts company reported $3.87 earnings per share for the quarter, topping analysts' consensus estimates of $3.51 by $0.36. The firm had revenue of $5.82 billion for the quarter, compared to analyst estimates of $5.84 billion. Lear had a return on equity of 13.69% and a net margin of 2.25%.Lear's quarterly revenue was up 4.7% on a year-over-year basis. During the same quarter in the prior year, the company posted $3.12 earnings per share. On average, equities analysts anticipate that Lear Corporation will post 14.81 earnings per share for the current fiscal year.

Lear Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Tuesday, June 23rd. Shareholders of record on Wednesday, June 3rd were given a dividend of $0.77 per share. This represents a $3.08 annualized dividend and a dividend yield of 2.2%. The ex-dividend date was Wednesday, June 3rd. Lear's payout ratio is presently 30.80%.

Wall Street Analysts Forecast Growth

Several equities research analysts have recently commented on the company. UBS Group cut their price target on Lear from $145.00 to $135.00 and set a "neutral" rating for the company in a research note on Tuesday, April 14th. Deutsche Bank Aktiengesellschaft set a $133.00 price objective on shares of Lear in a research report on Monday, May 4th. Royal Bank Of Canada boosted their price objective on shares of Lear from $138.00 to $143.00 and gave the company a "sector perform" rating in a research note on Monday, July 13th. Morgan Stanley set a $130.00 target price on shares of Lear in a research note on Monday, May 4th. Finally, TD Cowen raised shares of Lear from a "hold" rating to a "buy" rating and lifted their target price for the company from $138.00 to $165.00 in a report on Tuesday, May 26th. One analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating and nine have issued a Hold rating to the company's stock. According to data from MarketBeat.com, the company currently has a consensus rating of "Hold" and an average target price of $144.62.

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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