Lazard Asset Management LLC Trims Stake in Lear Corporation $LEA

Key Points

• Lazard Asset Management cut its Lear stake by 88.5% in the first quarter, selling 35,892 shares and retaining 4,650 shares valued at approximately $563,000. Institutional investors still own 97.04% of Lear.
• Lear reported quarterly EPS of $4.28, beating estimates of $3.98, while revenue reached $6.21 billion and rose 3% year over year. The company also maintains a quarterly dividend of $0.77 per share, representing a 2.6% annualized yield.
• Analyst sentiment remains mixed: the consensus rating is “Hold” with a $145.23 price target, while recent actions included Wells Fargo raising its target to $138 and BNP Paribas Exane downgrading the stock to Neutral.

Lazard Asset Management LLC cut its holdings in Lear Corporation (NYSE:LEA - Free Report) by 88.5% during the 1st quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The firm owned 4,650 shares of the auto parts company's stock after selling 35,892 shares during the period. Lazard Asset Management LLC's holdings in Lear were worth $563,000 as of its most recent SEC filing.

Other hedge funds have also recently modified their holdings of the company. UMB Bank n.a. increased its stake in shares of Lear by 15.0% in the 4th quarter. UMB Bank n.a. now owns 676 shares of the auto parts company's stock worth $77,000 after purchasing an additional 88 shares in the last quarter. Waterfront Wealth Inc. lifted its position in Lear by 0.5% during the first quarter. Waterfront Wealth Inc. now owns 17,404 shares of the auto parts company's stock valued at $2,107,000 after purchasing an additional 89 shares in the last quarter. Inspire Advisors LLC grew its holdings in Lear by 4.5% during the fourth quarter. Inspire Advisors LLC now owns 2,147 shares of the auto parts company's stock valued at $246,000 after purchasing an additional 92 shares during the period. Allworth Financial LP grew its holdings in Lear by 32.0% during the fourth quarter. Allworth Financial LP now owns 408 shares of the auto parts company's stock valued at $47,000 after purchasing an additional 99 shares during the period. Finally, Advisors Asset Management Inc. increased its position in Lear by 2.1% in the fourth quarter. Advisors Asset Management Inc. now owns 5,899 shares of the auto parts company's stock worth $676,000 after buying an additional 121 shares in the last quarter. Institutional investors own 97.04% of the company's stock.

Insider Transactions at Lear

In other Lear news, SVP Nicholas Jon Roelli sold 2,336 shares of the firm's stock in a transaction that occurred on Friday, May 22nd. The stock was sold at an average price of $141.38, for a total transaction of $330,263.68. Following the completion of the transaction, the senior vice president owned 2,339 shares in the company, valued at $330,687.82. This trade represents a 49.97% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through this link. Also, CEO Raymond E. Scott sold 50,000 shares of Lear stock in a transaction that occurred 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 completion of the sale, the chief executive officer directly owned 49,789 shares in the company, valued at approximately $6,739,936.93. The trade was a 50.11% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 62,026 shares of company stock valued at $8,498,248 in the last ninety days. Corporate insiders own 1.02% of the company's stock.

Lear Stock Performance

LEA opened at $118.93 on Friday. The company has a debt-to-equity ratio of 0.51, a quick ratio of 1.04 and a current ratio of 1.31. The stock has a market capitalization of $5.87 billion, a price-to-earnings ratio of 11.08, a PEG ratio of 0.60 and a beta of 1.25. The company has a fifty day moving average of $138.46 and a 200 day moving average of $131.16. Lear Corporation has a fifty-two week low of $95.27 and a fifty-two week high of $150.33.

Lear (NYSE:LEA - Get Free Report) last announced its quarterly earnings results on Friday, July 31st. The auto parts company reported $4.28 EPS for the quarter, topping the consensus estimate of $3.98 by $0.30. The business had revenue of $6.21 billion for the quarter, compared to analysts' expectations of $6.15 billion. Lear had a net margin of 2.35% and a return on equity of 14.18%. The business's quarterly revenue was up 3.0% compared to the same quarter last year. During the same quarter in the previous year, the company earned $3.06 EPS. As a group, sell-side analysts forecast that Lear Corporation will post 14.84 earnings per share for the current fiscal year.

Lear Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Tuesday, June 23rd. Investors of record on Wednesday, June 3rd were paid a dividend of $0.77 per share. The ex-dividend date of this dividend was Wednesday, June 3rd. This represents a $3.08 dividend on an annualized basis and a yield of 2.6%. Lear's dividend payout ratio is presently 28.70%.

Lear News Summary

Here are the key news stories impacting Lear this week:

• Positive Sentiment: Lear’s second-quarter earnings exceeded expectations, helped by margin expansion in its E-Systems segment. The company also raised its 2026 share-repurchase target to at least $350 million, signaling confidence in cash generation and providing potential shareholder support. LEA Q2 Earnings Beat Estimates on E-Systems Margin Expansion
• Neutral Sentiment: Wells Fargo maintained a Hold rating while increasing its price target to $138, suggesting some potential upside from current levels but limited conviction that the recent earnings performance warrants a more bullish stance. Lear Gets a Hold from Wells Fargo
• Negative Sentiment: BNP Paribas Exane lowered Lear’s rating to Neutral, adding pressure to the stock by signaling that the shares’ risk-reward profile may be less attractive after their recent performance. Lear Rating Lowered to Neutral at BNP Paribas Exane

Wall Street Analyst Weigh In

Several research analysts have recently commented on the company. Weiss Ratings raised Lear from a "hold (c+)" rating to a "buy (b-)" rating in a research note on Tuesday, June 23rd. Morgan Stanley set a $130.00 target price on shares of Lear in a report on Monday, May 4th. Wells Fargo & Company raised their target price on shares of Lear from $137.00 to $138.00 and gave the stock an "equal weight" rating in a research note on Monday. The Goldman Sachs Group reaffirmed a "neutral" rating and set a $140.00 price target on shares of Lear in a report on Saturday, August 1st. Finally, TD Cowen upgraded shares of Lear from a "hold" rating to a "buy" rating and upped their price target for the stock from $138.00 to $165.00 in a research report on Tuesday, May 26th. One investment analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating and ten have issued a Hold rating to the stock. Based on data from MarketBeat.com, the company currently has a consensus rating of "Hold" and a consensus target price of $145.23.

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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