Engineers Gate Manager LP Grows Position in Lear Corporation $LEA

Key Points

• Engineers Gate Manager LP increased its Lear position by 145.6% in the second quarter, reaching 126,588 shares valued at approximately $16.97 million. Institutional investors collectively own 97.04% of Lear’s stock.
• Lear reported stronger-than-expected quarterly results, with EPS of $4.28 versus the $3.98 consensus estimate and revenue of $6.21 billion, up 3% year over year.
• Lear declared a quarterly dividend of $0.77 per share, equivalent to an annualized $3.08 dividend and a 2.4% yield. Analysts maintain a consensus “Hold” rating with an average price target of $147.08, compared with shares trading near $126.92.

Engineers Gate Manager LP boosted its holdings in Lear Corporation (NYSE:LEA - Free Report) by 145.6% in the second quarter, according to the company in its most recent 13F filing with the SEC. The fund owned 126,588 shares of the auto parts company's stock after buying an additional 75,043 shares during the quarter. Engineers Gate Manager LP owned 0.26% of Lear worth $16,970,000 at the end of the most recent quarter.

A number of other institutional investors have also recently made changes to their positions in LEA. IFP Advisors Inc boosted its holdings in Lear by 14.3% in the second quarter. IFP Advisors Inc now owns 624 shares of the auto parts company's stock worth $84,000 after purchasing an additional 78 shares during the last quarter. Altshuler Shaham Ltd boosted its stake in shares of Lear by 36.5% in the 1st quarter. Altshuler Shaham Ltd now owns 303 shares of the auto parts company's stock worth $37,000 after buying an additional 81 shares during the last quarter. Versant Capital Management Inc grew its holdings in shares of Lear by 3.8% in the second quarter. Versant Capital Management Inc now owns 2,260 shares of the auto parts company's stock worth $303,000 after acquiring an additional 82 shares during the period. UMB Bank n.a. increased its position in Lear by 15.0% during the fourth quarter. UMB Bank n.a. now owns 676 shares of the auto parts company's stock valued at $77,000 after acquiring an additional 88 shares during the last quarter. Finally, Waterfront Wealth Inc. lifted its holdings in Lear by 0.5% in the first quarter. Waterfront Wealth Inc. now owns 17,404 shares of the auto parts company's stock valued at $2,107,000 after acquiring an additional 89 shares during the period. Hedge funds and other institutional investors own 97.04% of the company's stock.

Lear Trading Down 1.5%

Shares of NYSE:LEA opened at $126.92 on Thursday. The stock has a 50 day moving average of $131.31 and a 200 day moving average of $130.66. The company has a market cap of $6.26 billion, a PE ratio of 11.83, a price-to-earnings-growth ratio of 0.79 and a beta of 1.26. Lear Corporation has a 12-month low of $96.04 and a 12-month high of $150.33. The company has a current ratio of 1.31, a quick ratio of 1.04 and a debt-to-equity ratio of 0.51.

Lear (NYSE:LEA - Get Free Report) last issued its quarterly earnings results on Friday, July 31st. The auto parts company reported $4.28 earnings per share for the quarter, beating the consensus estimate of $3.98 by $0.30. The business had revenue of $6.21 billion for the quarter, compared to the consensus estimate of $6.15 billion. Lear had a net margin of 2.35% and a return on equity of 14.18%. The company's revenue for the quarter was up 3.0% on a year-over-year basis. During the same quarter in the previous year, the firm earned $3.06 earnings per share. As a group, equities research analysts expect that Lear Corporation will post 14.86 EPS for the current year.

Lear Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, September 22nd. Shareholders of record on Wednesday, September 2nd will be issued a dividend of $0.77 per share. The ex-dividend date of this dividend is Wednesday, September 2nd. This represents a $3.08 dividend on an annualized basis and a yield of 2.4%. Lear's dividend payout ratio (DPR) is currently 28.70%.

Analyst Upgrades and Downgrades

LEA has been the subject of a number of recent research reports. JPMorgan Chase & Co. boosted their price target on Lear from $153.00 to $159.00 and gave the company an "overweight" rating in a research note on Friday, July 10th. The Goldman Sachs Group reissued a "neutral" rating and issued a $140.00 price objective on shares of Lear in a report on Saturday, August 1st. Barclays boosted their target price on shares of Lear from $150.00 to $155.00 and gave the company an "equal weight" rating in a research report on Thursday, July 9th. Wells Fargo & Company increased their price target on shares of Lear from $137.00 to $138.00 and gave the stock an "equal weight" rating in a research report on Monday, August 3rd. Finally, TD Cowen upgraded shares of Lear from a "hold" rating to a "buy" rating and lifted their price target for the stock from $138.00 to $165.00 in a research note on Tuesday, May 26th. One investment analyst has rated the stock with a Strong Buy rating, five have given a Buy rating and ten have given a Hold rating to the stock. According to MarketBeat.com, the stock presently has a consensus rating of "Hold" and a consensus price target of $147.08.

Insider Activity

In other Lear news, Director Conrad Mallett, Jr. sold 1,646 shares of the company's stock in a transaction that occurred on Thursday, August 6th. The stock was sold at an average price of $121.35, for a total value of $199,742.10. Following the completion of the transaction, the director directly owned 37 shares in the company, valued at $4,489.95. This represents a 97.80% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. Also, CEO Raymond E. Scott sold 50,000 shares of Lear 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 sale, the chief executive officer owned 49,789 shares in the company, valued at approximately $6,739,936.93. The trade was a 50.11% decrease in their position. The disclosure for this sale is available in the SEC filing. 1.02% of the stock is owned by insiders.

Lear News Roundup

Here are the key news stories impacting Lear this week:

• Positive Sentiment: Zacks identifies Lear as a highly ranked growth stock. The article highlights Zacks’ Style Scores as a screening tool and presents Lear as an attractive candidate for growth-oriented investors. This could support sentiment, although the report does not introduce new financial results or raise the company’s guidance. Lear is a Top-Ranked Growth Stock: Should You Buy?
• Neutral Sentiment: Lear has recently reported stronger-than-expected operating results. The company’s latest quarterly report showed earnings of $4.28 per share versus a $3.98 consensus estimate, revenue of $6.21 billion, and 3% year-over-year revenue growth. Those results provide a fundamental cushion, but they were reported previously and are unlikely to explain the latest trading activity.
• Negative Sentiment: Potentially higher interest rates could pressure auto suppliers. Commentary warning that the Federal Reserve could raise rates amid an energy shock raises broader risks for economically sensitive industries. Higher borrowing costs and weaker vehicle demand could affect automakers and suppliers such as Lear, though the article does not discuss Lear specifically. Fed rate and oil shock analysis

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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