Lear Corporation $LEA Position Lessened by Alps Advisors Inc.

Key Points

• Alps Advisors cut its Lear stake by 66.1% in the third quarter, selling 59,760 shares and retaining 30,593 shares valued at about $3.6 million.
• Lear reported quarterly EPS of $3.71, above the $3.32 consensus, while revenue of $5.77 billion fell short of estimates. Revenue rose 1.6% year over year.
• The company authorized a $1.5 billion share buyback and pays an annualized dividend of $3.08 per share. Analysts’ average rating was “Hold,” with an average price target of $143.25.

Alps Advisors Inc. decreased its position in Lear Corporation (NYSE:LEA - Free Report) by 66.1% in the 3rd quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The firm owned 30,593 shares of the auto parts company's stock after selling 59,760 shares during the quarter. Alps Advisors Inc. owned about 0.06% of Lear worth $3,611,000 at the end of the most recent reporting period.

Other large investors have also bought and sold shares of the company. Bank of New York Mellon Corp bought a new position in shares of Lear during the 2nd quarter valued at about $65,397,000. Diamond Hill Capital Management LLC Investment Advisor acquired a new stake in Lear during the second quarter valued at approximately $17,423,000. Dimensional Fund Advisors LP boosted its holdings in Lear by 3.8% during the first quarter. Dimensional Fund Advisors LP now owns 2,943,480 shares of the auto parts company's stock worth $356,380,000 after buying an additional 107,678 shares in the last quarter. Assenagon Asset Management S.A. bought a new stake in Lear during the third quarter worth approximately $11,911,000. Finally, Engineers Gate Manager LP grew its position in Lear by 145.6% in the second quarter. Engineers Gate Manager LP now owns 126,588 shares of the auto parts company's stock worth $16,970,000 after buying an additional 75,043 shares during the last quarter. Institutional investors own 97.04% of the company's stock.

Insiders Place Their Bets

In related news, CFO Jason Cardew sold 5,000 shares of the stock in a transaction on Tuesday, November 3rd. The stock was sold at an average price of $117.75, for a total transaction of $588,750.00. Following the completion of the sale, the chief financial officer directly owned 8,241 shares in the company, valued at approximately $970,377.75. This trade represents a 37.76% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Corporate insiders own 1.02% of the company's stock.

Lear Stock Performance

Shares of LEA stock opened at $111.08 on Tuesday. Lear Corporation has a 1-year low of $99.00 and a 1-year high of $150.33. The company has a current ratio of 1.18, a quick ratio of 0.92 and a debt-to-equity ratio of 0.40. The company has a market capitalization of $5.35 billion, a price-to-earnings ratio of 9.70, a P/E/G ratio of 0.67 and a beta of 1.28. The stock's fifty day simple moving average is $121.10 and its 200-day simple moving average is $128.15.

Lear (NYSE:LEA - Get Free Report) last announced its quarterly earnings data on Friday, October 30th. The auto parts company reported $3.71 earnings per share (EPS) for the quarter, topping the consensus estimate of $3.32 by $0.39. Lear had a return on equity of 14.92% and a net margin of 2.46%. The firm had revenue of $5.77 billion during the quarter, compared to the consensus estimate of $5.81 billion. During the same period in the prior year, the business earned $2.79 EPS. The business's revenue for the quarter was up 1.6% on a year-over-year basis. On average, sell-side analysts predict that Lear Corporation will post 15.15 earnings per share for the current fiscal year.

Lear announced that its board has authorized a share buyback program on Thursday, September 24th that permits the company to repurchase $1.50 billion in shares. This buyback authorization permits the auto parts company to repurchase up to 25.7% of its stock through open market purchases. Share buyback programs are usually a sign that the company's board believes its stock is undervalued.

Lear Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Tuesday, September 22nd. Investors of record on Wednesday, September 2nd were given a dividend of $0.77 per share. The ex-dividend date of this dividend was Wednesday, September 2nd. This represents a $3.08 dividend on an annualized basis and a yield of 2.8%. Lear's payout ratio is presently 26.90%.

Analyst Upgrades and Downgrades

Several equities research analysts have recently weighed in on LEA shares. Deutsche Bank Aktiengesellschaft set a $131.00 target price on Lear in a report on Monday, August 3rd. Weiss Ratings lowered Lear from a "buy (b-)" rating to a "hold (c+)" rating in a research report on Wednesday, September 9th. BNP Paribas Exane downgraded Lear from an "outperform" rating to a "neutral" rating in a report on Monday, August 3rd. Barclays decreased their price target on Lear from $155.00 to $145.00 and set an "equal weight" rating for the company in a research report on Friday, October 9th. Finally, The Goldman Sachs Group dropped their price target on Lear from $140.00 to $124.00 and set a "buy" rating on the stock in a research note on Tuesday, October 6th. One analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating and twelve have issued a Hold rating to the company's stock. According to MarketBeat.com, the company currently has an average rating of "Hold" and an average price target of $143.25.

Lear Company Profile

Lear Corporation is a global automotive technology supplier that designs and manufactures products for vehicle seating and electrical systems. Its customers include automakers around the world, and its products are used in a range of vehicle types.

The company's seating business provides complete seating systems and components, including seat structures, mechanisms, foam and trim. Its E-Systems business develops electrical distribution systems, connectivity solutions and electronic components that help manage power and data within vehicles.

Lear traces its origins to 1917, when it was established as American Metal Products.

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