First Trust Advisors LP Purchases 180,005 Shares of Lear Corporation $LEA

Key Points

• First Trust Advisors LP increased its stake in Lear by 56.9%, buying 180,005 shares to hold 496,353 shares (about 0.96% of the company) valued at roughly $49.94 million per its latest SEC filing.
• Lear beat last quarter's expectations, reporting EPS of $3.41 versus $2.67 expected and revenue of $5.99 billion versus $5.78 billion, showing year-over-year revenue and EPS improvement.
• Multiple analysts have raised price targets (including Citigroup and TD Cowen) and one firm upgraded to "strong-buy," but the consensus remains an average "Hold" rating with an average target of $138.27.

First Trust Advisors LP grew its position in Lear Corporation (NYSE:LEA - Free Report) by 56.9% in the 3rd quarter, according to its most recent disclosure with the SEC. The fund owned 496,353 shares of the auto parts company's stock after buying an additional 180,005 shares during the period. First Trust Advisors LP owned approximately 0.96% of Lear worth $49,938,000 as of its most recent SEC filing.

Other hedge funds and other institutional investors have also recently made changes to their positions in the company. Schroder Investment Management Group increased its position in shares of Lear by 75.6% during the second quarter. Schroder Investment Management Group now owns 1,801,284 shares of the auto parts company's stock valued at $171,086,000 after acquiring an additional 775,476 shares in the last quarter. American Century Companies Inc. lifted its position in Lear by 78.6% in the 2nd quarter. American Century Companies Inc. now owns 1,269,500 shares of the auto parts company's stock valued at $120,577,000 after acquiring an additional 558,538 shares in the last quarter. Norges Bank purchased a new stake in Lear during the 2nd quarter valued at $48,468,000. Balyasny Asset Management L.P. purchased a new stake in Lear during the 2nd quarter valued at $39,656,000. Finally, Boston Partners bought a new stake in shares of Lear in the 2nd quarter worth $26,069,000. Institutional investors own 97.04% of the company's stock.

Wall Street Analysts Forecast Growth

A number of research analysts have recently issued reports on the company. TD Cowen upped their price target on Lear from $117.00 to $133.00 and gave the company a "hold" rating in a report on Thursday, February 5th. Citigroup boosted their target price on Lear from $146.00 to $177.00 and gave the stock a "buy" rating in a research report on Thursday, February 5th. Evercore upped their target price on shares of Lear from $110.00 to $120.00 and gave the company an "in-line" rating in a research note on Monday, November 24th. Wall Street Zen upgraded shares of Lear from a "buy" rating to a "strong-buy" rating in a research note on Friday, January 23rd. Finally, Barclays set a $140.00 price objective on shares of Lear in a report on Thursday, February 5th. One investment analyst has rated the stock with a Strong Buy rating, three have given a Buy rating and nine have issued a Hold rating to the company's stock. Based on data from MarketBeat.com, the company has an average rating of "Hold" and an average target price of $138.27.

Insider Buying and Selling

In related news, SVP Alicia J. Davis sold 6,630 shares of the business's stock in a transaction that occurred on Thursday, February 19th. The stock was sold at an average price of $132.98, for a total transaction of $881,657.40. Following the completion of the transaction, the senior vice president directly owned 9,972 shares in the company, valued at approximately $1,326,076.56. The trade was a 39.93% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, SVP Harry Albert Kemp sold 7,000 shares of the firm's stock in a transaction that occurred on Thursday, February 19th. The stock was sold at an average price of $136.31, for a total transaction of $954,170.00. Following the sale, the senior vice president owned 17,423 shares in the company, valued at approximately $2,374,929.13. The trade was a 28.66% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders have sold 30,220 shares of company stock valued at $3,986,427. Insiders own 0.91% of the company's stock.

Lear Stock Down 1.2%

LEA opened at $117.89 on Thursday. The company has a current ratio of 1.35, a quick ratio of 1.05 and a debt-to-equity ratio of 0.52. Lear Corporation has a 1-year low of $73.85 and a 1-year high of $142.84. The company has a market capitalization of $5.98 billion, a PE ratio of 14.46, a PEG ratio of 0.86 and a beta of 1.26. The firm's 50 day simple moving average is $126.55 and its two-hundred day simple moving average is $113.81.

Lear (NYSE:LEA - Get Free Report) last issued its quarterly earnings data on Wednesday, February 4th. The auto parts company reported $3.41 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $2.67 by $0.74. The firm had revenue of $5.99 billion during the quarter, compared to the consensus estimate of $5.78 billion. Lear had a net margin of 1.88% and a return on equity of 13.40%. The company's revenue for the quarter was up 4.8% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $2.94 EPS. As a group, equities analysts forecast that Lear Corporation will post 12.89 EPS for the current year.

Lear Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, March 25th. Stockholders of record on Thursday, March 5th will be paid a $0.77 dividend. The ex-dividend date of this dividend is Thursday, March 5th. This represents a $3.08 annualized dividend and a dividend yield of 2.6%. Lear's dividend payout ratio (DPR) is 37.79%.

About Lear

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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