Lear Corporation $LEA Shares Bought by Schroder Investment Management Group

Key Points

• Schroder Investment Management Group increased its stake in Lear to 1,825,057 shares (about 3.52% of the company) after buying 23,773 shares in Q3, and institutional investors now own roughly 97.04% of Lear.
• Lear beat expectations last quarter, reporting $3.41 EPS versus a $2.67 consensus and revenue of $5.99 billion (up 4.8% year-over-year), while analysts project about 12.89 EPS for the current year.
• The company announced a quarterly dividend of $0.77 (annualized $3.08, ~2.6% yield) payable March 25, even as insiders sold roughly 30,220 shares (~$3.99 million) over the last three months.

Schroder Investment Management Group lifted its position in Lear Corporation (NYSE:LEA - Free Report) by 1.3% during the third quarter, according to its most recent 13F filing with the SEC. The institutional investor owned 1,825,057 shares of the auto parts company's stock after buying an additional 23,773 shares during the period. Schroder Investment Management Group owned approximately 3.52% of Lear worth $182,688,000 at the end of the most recent reporting period.

Several other large investors have also bought and sold shares of the company. American Century Companies Inc. grew its holdings in Lear by 78.6% during the second quarter. American Century Companies Inc. now owns 1,269,500 shares of the auto parts company's stock worth $120,577,000 after acquiring an additional 558,538 shares during the period. Norges Bank bought a new position in shares of Lear during the 2nd quarter valued at about $48,468,000. Balyasny Asset Management L.P. bought a new position in shares of Lear during the 2nd quarter valued at about $39,656,000. Boston Partners acquired a new position in shares of Lear in the 2nd quarter worth approximately $26,069,000. Finally, First Trust Advisors LP raised its holdings in shares of Lear by 56.9% in the 3rd quarter. First Trust Advisors LP now owns 496,353 shares of the auto parts company's stock worth $49,938,000 after purchasing an additional 180,005 shares in the last quarter. Institutional investors own 97.04% of the company's stock.

Lear Stock Performance

Lear stock opened at $120.18 on Tuesday. The firm's 50 day simple moving average is $126.42 and its 200-day simple moving average is $113.71. The company has a market cap of $6.10 billion, a P/E ratio of 14.75, a price-to-earnings-growth ratio of 0.87 and a beta of 1.26. The company has a debt-to-equity ratio of 0.52, a current ratio of 1.35 and a quick ratio of 1.05. Lear Corporation has a fifty-two week low of $73.85 and a fifty-two week high of $142.84.

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

Lear Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, March 25th. Stockholders of record on Thursday, March 5th will be issued a $0.77 dividend. The ex-dividend date is Thursday, March 5th. This represents a $3.08 dividend on an annualized basis and a dividend yield of 2.6%. Lear's dividend payout ratio is presently 37.79%.

Analyst Ratings Changes

A number of brokerages recently weighed in on LEA. Wells Fargo & Company raised their target price on shares of Lear from $123.00 to $131.00 and gave the stock an "equal weight" rating in a report on Thursday, February 5th. Argus raised Lear to a "strong-buy" rating in a report on Monday, February 9th. Evercore increased their price objective on Lear from $110.00 to $120.00 and gave the company an "in-line" rating in a research report on Monday, November 24th. TD Cowen raised their price objective on Lear from $117.00 to $133.00 and gave the stock a "hold" rating in a research note on Thursday, February 5th. Finally, UBS Group lifted their target price on Lear from $135.00 to $145.00 and gave the stock a "neutral" rating in a report on Thursday, February 5th. One 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. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Hold" and a consensus price target of $138.27.

Insiders Place Their Bets

In other news, SVP Alicia J. Davis sold 6,630 shares of the firm's stock in a transaction on Thursday, February 19th. The stock was sold at an average price of $132.98, for a total value of $881,657.40. Following the completion of the sale, the senior vice president owned 9,972 shares of the company's stock, valued at $1,326,076.56. This trade represents a 39.93% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this link. Also, CFO Jason M. Cardew sold 10,000 shares of Lear stock in a transaction on Thursday, February 19th. The shares were sold at an average price of $134.51, for a total value of $1,345,100.00. Following the transaction, the chief financial officer owned 22,741 shares in the company, valued at $3,058,891.91. This represents a 30.54% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold 30,220 shares of company stock worth $3,986,427 over the last three months. Company insiders own 0.91% of the company's stock.

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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