Lear Corporation $LEA Shares Sold by Diamond Hill Capital Management Inc.

Key Points

• Diamond Hill Capital Management cut its Lear stake by 66% in the fourth quarter, selling 325,662 shares and leaving it with 167,697 shares valued at about $19.2 million.
• Lear reported strong quarterly earnings, with EPS of $3.87 beating estimates by $0.36 and revenue rising 4.7% year over year, which helped support positive sentiment around the stock.
• The company also declared a quarterly dividend of $0.77 per share, equivalent to $3.08 annually and a 2.2% yield, while analysts currently rate the stock at an average Hold.

Diamond Hill Capital Management Inc. reduced its stake in shares of Lear Corporation (NYSE:LEA - Free Report) by 66.0% in the 4th quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund owned 167,697 shares of the auto parts company's stock after selling 325,662 shares during the period. Diamond Hill Capital Management Inc. owned 0.32% of Lear worth $19,218,000 as of its most recent SEC filing.

Other institutional investors have also recently modified their holdings of the company. Jones Financial Companies Lllp raised its holdings in Lear by 5,205.1% in the 1st quarter. Jones Financial Companies Lllp now owns 7,268 shares of the auto parts company's stock valued at $604,000 after acquiring an additional 7,131 shares during the last quarter. United Services Automobile Association acquired a new position in Lear in the 1st quarter valued at $267,000. Empowered Funds LLC acquired a new position in Lear in the 1st quarter valued at $256,000. EverSource Wealth Advisors LLC raised its holdings in Lear by 37.1% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 968 shares of the auto parts company's stock valued at $92,000 after acquiring an additional 262 shares during the last quarter. Finally, Cerity Partners LLC raised its holdings in Lear by 9.5% in the 2nd quarter. Cerity Partners LLC now owns 4,296 shares of the auto parts company's stock valued at $408,000 after acquiring an additional 372 shares during the last quarter. 97.04% of the stock is currently owned by institutional investors and hedge funds.

Lear News Roundup

Here are the key news stories impacting Lear this week:

• Positive Sentiment: Zacks highlighted Lear (LEA) as a top-ranked growth stock, which may draw in growth-oriented investors and support the shares. Lear (LEA) is a Top-Ranked Growth Stock: Should You Buy?
• Neutral Sentiment: Recent articles about saunas, red light therapy, crypto regulation, and other unrelated topics do not appear to affect Lear’s shares. The health benefits of saunas: backed by research and experts
• Neutral Sentiment: Lear’s latest reported results showed EPS ahead of expectations and revenue growth, helping reinforce the stock’s positive momentum, though this was from an earlier earnings release rather than a new catalyst today.

Lear Trading Up 0.9%

LEA stock opened at $139.73 on Friday. The company has a market cap of $7.00 billion, a price-to-earnings ratio of 13.97, a PEG ratio of 0.70 and a beta of 1.21. The company has a quick ratio of 1.05, a current ratio of 1.33 and a debt-to-equity ratio of 0.51. The business has a fifty day simple moving average of $125.37 and a 200-day simple moving average of $121.21. Lear Corporation has a 52 week low of $86.14 and a 52 week high of $142.84.

Lear (NYSE:LEA - Get Free Report) last released its quarterly earnings data on Friday, May 1st. The auto parts company reported $3.87 EPS for the quarter, topping analysts' consensus estimates of $3.51 by $0.36. The business had revenue of $5.82 billion during the quarter, compared to the consensus estimate of $5.84 billion. Lear had a return on equity of 13.69% and a net margin of 2.25%.The business's revenue for the quarter was up 4.7% on a year-over-year basis. During the same period in the prior year, the firm posted $3.12 EPS. On average, equities research analysts expect that Lear Corporation will post 14.61 EPS for the current year.

Lear Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, June 23rd. Investors of record on Wednesday, June 3rd will be given a dividend of $0.77 per share. This represents a $3.08 dividend on an annualized basis and a yield of 2.2%. The ex-dividend date of this dividend is Wednesday, June 3rd. Lear's dividend payout ratio is 30.80%.

Insiders Place Their Bets

In related news, VP Marianne Vidershain sold 1,590 shares of the company's stock in a transaction on Tuesday, February 24th. The shares were sold at an average price of $135.00, for a total transaction of $214,650.00. Following the completion of the sale, the vice president directly owned 1,862 shares of the company's stock, valued at approximately $251,370. This represents a 46.06% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Company insiders own 1.02% of the company's stock.

Analysts Set New Price Targets

Several brokerages have weighed in on LEA. Weiss Ratings reiterated a "hold (c+)" rating on shares of Lear in a report on Monday, May 4th. Wells Fargo & Company boosted their price target on Lear from $126.00 to $133.00 and gave the company an "equal weight" rating in a report on Monday, May 4th. Bank of America began coverage on Lear in a report on Wednesday, March 4th. They issued a "neutral" rating for the company. TD Cowen reiterated a "hold" rating on shares of Lear in a report on Monday, May 4th. Finally, Wall Street Zen upgraded Lear from a "buy" rating to a "strong-buy" rating in a report on Friday, January 23rd. One investment analyst has rated the stock with a Strong Buy rating, three have given a Buy rating and eleven have given a Hold rating to the stock. According to data from MarketBeat.com, the company presently has an average rating of "Hold" and an average target price of $140.54.

Lear Profile

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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