Globeflex Capital L P Acquires New Stake in Lear Corporation $LEA

Key Points

• Globeflex Capital L P opened a new position in Lear Corporation, buying 8,023 shares valued at about $971,000 in the first quarter.
• Lear reported better-than-expected quarterly earnings, with EPS of $3.87 versus the $3.51 estimate, while revenue rose 4.7% year over year to $5.82 billion.
• The stock also has mixed signals from Wall Street and insiders: analysts’ consensus rating is Hold with a $144.62 price target, while CEO Raymond E. Scott sold 50,000 shares in June.

Globeflex Capital L P bought a new position in shares of Lear Corporation (NYSE:LEA - Free Report) during the 1st quarter, according to its most recent disclosure with the SEC. The fund bought 8,023 shares of the auto parts company's stock, valued at approximately $971,000.

A number of other institutional investors have also recently made changes to their positions in the stock. Altshuler Shaham Ltd acquired a new stake in shares of Lear in the fourth quarter valued at about $25,000. WealthCollab LLC acquired a new position in shares of Lear in the second quarter worth approximately $28,000. Los Angeles Capital Management LLC bought a new stake in Lear in the fourth quarter valued at approximately $30,000. Allworth Financial LP boosted its holdings in Lear by 62.6% in the third quarter. Allworth Financial LP now owns 309 shares of the auto parts company's stock valued at $31,000 after acquiring an additional 119 shares during the last quarter. Finally, Global Retirement Partners LLC increased its position in Lear by 942.3% during the 4th quarter. Global Retirement Partners LLC now owns 271 shares of the auto parts company's stock valued at $31,000 after purchasing an additional 245 shares during the period. Institutional investors own 97.04% of the company's stock.

Lear Price Performance

Shares of NYSE LEA opened at $143.82 on Thursday. The firm has a market capitalization of $7.21 billion, a P/E ratio of 14.38, a P/E/G ratio of 0.69 and a beta of 1.25. The firm's 50-day moving average price is $138.82 and its 200-day moving average price is $130.14. 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 1-year low of $91.67 and a 1-year high of $150.33.

Lear (NYSE:LEA - Get Free Report) last issued its earnings results on Friday, May 1st. The auto parts company reported $3.87 EPS for the quarter, beating the consensus estimate of $3.51 by $0.36. Lear had a return on equity of 13.69% and a net margin of 2.25%.The company had revenue of $5.82 billion during the quarter, compared to the consensus estimate of $5.84 billion. During the same period last year, the business posted $3.12 EPS. The firm's revenue for the quarter was up 4.7% compared to the same quarter last year. Equities research analysts anticipate that Lear Corporation will post 14.81 earnings per share for the current fiscal year.

Lear Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Tuesday, June 23rd. Shareholders of record on Wednesday, June 3rd were paid a $0.77 dividend. This represents a $3.08 dividend on an annualized basis and a yield of 2.1%. The ex-dividend date of this dividend was Wednesday, June 3rd. Lear's dividend payout ratio (DPR) is 30.80%.

Lear News Summary

Here are the key news stories impacting Lear this week:

• Positive Sentiment: Recent commentary from Zacks says Lear looks like a strong long-term value stock, pointing to favorable valuation and style-score factors. Why Lear (LEA) is a Top Value Stock for the Long-Term
• Positive Sentiment: Another Zacks piece asks whether Lear is undervalued right now, reinforcing the idea that the stock may still have upside if the market re-rates its earnings and cash flow outlook. Is Lear (LEA) Stock Undervalued Right Now?
• Positive Sentiment: Zacks also compared Lear with Modine and framed LEA as a competitive value option in the automotive supplier group, which can attract value-focused investors. LEA or MOD: Which Is the Better Value Stock Right Now?
• Positive Sentiment: One article noted Lear has a strong earnings surprise record and could beat estimates again in its next report, which would be a catalyst for the stock. Will Lear (LEA) Beat Estimates Again in Its Next Earnings Report?

Wall Street Analysts Forecast Growth

Several research firms have issued reports on LEA. Deutsche Bank Aktiengesellschaft set a $133.00 price target on shares of Lear in a report on Monday, May 4th. Citigroup upped their price objective on shares of Lear from $177.00 to $179.00 and gave the company a "buy" rating in a research note on Monday, May 4th. The Goldman Sachs Group lifted their target price on shares of Lear from $115.00 to $131.00 and gave the stock a "neutral" rating in a research note on Monday, May 4th. Royal Bank Of Canada boosted their target price on shares of Lear from $138.00 to $143.00 and gave the company a "sector perform" rating in a report on Monday, July 13th. Finally, Morgan Stanley set a $130.00 price target on shares of Lear in a research report on Monday, May 4th. One research analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating and nine have assigned a Hold rating to the company. According to MarketBeat, the company has an average rating of "Hold" and a consensus price target of $144.62.

Insider Transactions at Lear

In related news, CEO Raymond E. Scott sold 50,000 shares of the stock in a transaction on Wednesday, June 24th. The stock was sold at an average price of $135.37, for a total value of $6,768,500.00. Following the transaction, the chief executive officer directly owned 49,789 shares in the company, valued at $6,739,936.93. This trade represents a 50.11% decrease in their position. 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 Lear stock in a transaction on Wednesday, June 10th. The shares were sold at an average price of $141.34, for a total transaction of $26,854.60. Following the completion of the sale, the director directly owned 1,683 shares of the company's stock, valued at approximately $237,875.22. The trade was a 10.14% decrease in their position. The SEC filing for this sale provides additional information. Over the last ninety days, insiders sold 62,026 shares of company stock worth $8,498,248. 1.02% of the stock is currently owned by insiders.

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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