Lear Corporation $LEA Shares Sold by Geode Capital Management LLC

Key Points

• Geode Capital Management slightly trimmed its Lear stake, selling 12,130 shares in the fourth quarter and leaving it with 1,205,959 shares valued at about $138.2 million.
• Lear reported stronger-than-expected earnings, with quarterly EPS of $3.87 beating estimates while revenue rose 4.7% year over year to $5.82 billion.
• The company also announced a quarterly dividend of $0.77 per share, equal to an annualized yield of 2.1%, even as insider selling and analyst sentiment remained mixed.

Geode Capital Management LLC lowered its holdings in Lear Corporation (NYSE:LEA - Free Report) by 1.0% in the fourth quarter, according to the company in its most recent disclosure with the SEC. The firm owned 1,205,959 shares of the auto parts company's stock after selling 12,130 shares during the quarter. Geode Capital Management LLC owned 2.32% of Lear worth $138,235,000 as of its most recent filing with the SEC.

A number of other hedge funds and other institutional investors also recently bought and sold shares of LEA. WealthCollab LLC acquired a new stake in Lear in the second quarter valued at $28,000. Allworth Financial LP lifted 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 period. Global Retirement Partners LLC lifted its holdings in Lear by 942.3% in the fourth quarter. Global Retirement Partners LLC now owns 271 shares of the auto parts company's stock valued at $31,000 after acquiring an additional 245 shares during the period. Advisory Services Network LLC purchased a new position in shares of Lear in the third quarter valued at $33,000. Finally, Quarry LP increased its position in shares of Lear by 94.9% in the third quarter. Quarry LP now owns 458 shares of the auto parts company's stock valued at $46,000 after buying an additional 223 shares in the last quarter. Institutional investors and hedge funds own 97.04% of the company's stock.

Lear Trading Down 0.5%

Lear stock opened at $144.17 on Friday. The stock has a market cap of $7.22 billion, a PE ratio of 14.42, a P/E/G ratio of 0.74 and a beta of 1.23. The stock has a 50-day moving average price of $130.39 and a 200 day moving average price of $123.59. Lear Corporation has a 52 week low of $86.14 and a 52 week high of $150.33. 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 (NYSE:LEA - Get Free Report) last posted 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 firm had revenue of $5.82 billion during the quarter, compared to analysts' expectations of $5.84 billion. Lear had a return on equity of 13.69% and a net margin of 2.25%.The firm's quarterly revenue was up 4.7% compared to the same quarter last year. During the same quarter last year, the business posted $3.12 EPS. Equities research analysts predict that Lear Corporation will post 14.61 earnings per share for the current fiscal year.

Lear Announces Dividend

The business also recently disclosed 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 2.1%. The ex-dividend date is Wednesday, June 3rd. Lear's dividend payout ratio (DPR) is currently 30.80%.

Analyst Upgrades and Downgrades

A number of brokerages have recently weighed in on LEA. Bank of America began coverage on Lear in a research report on Wednesday, March 4th. They issued a "neutral" rating for the company. Weiss Ratings restated a "hold (c+)" rating on shares of Lear in a research report on Monday, May 4th. Argus upgraded Lear to a "strong-buy" rating in a research report on Monday, February 9th. Deutsche Bank Aktiengesellschaft set a $133.00 price target on Lear in a research report on Monday, May 4th. Finally, Royal Bank Of Canada raised their price target on Lear from $134.00 to $138.00 and gave the company a "sector perform" rating in a research report on Tuesday, May 5th. One research analyst has rated the stock with a Strong Buy rating, four have given a Buy rating and ten have given a Hold rating to the company's stock. According to MarketBeat.com, the company presently has an average rating of "Hold" and an average price target of $143.08.

More Lear News

Here are the key news stories impacting Lear this week:

• Positive Sentiment: Lear’s prior quarterly results were strong, with EPS of $3.87 beating estimates and revenue rising 4.7% year over year, reinforcing confidence in the auto supplier’s operating performance and helping support the stock. Article: Lear earnings and stock performance
• Positive Sentiment: The company also announced a quarterly dividend of $0.77 per share, signaling continued shareholder returns and a healthy payout ratio near 31%. Article: Lear dividend announcement
• Neutral Sentiment: Analyst sentiment remains mixed, with a consensus rating of Hold, though some firms still have bullish targets above current levels. Article: Lear analyst ratings
• Negative Sentiment: CFO Jason M. Cardew sold shares in two recent transactions, including 4,500 shares and 5,000 shares, which can pressure sentiment because investors often view insider selling as a sign of caution. Article: Lear CFO stock sales

Insider Transactions at Lear

In related news, SVP Nicholas Jon Roelli sold 2,336 shares of Lear stock in a transaction dated 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 sale, the senior vice president owned 2,339 shares in the company, valued at approximately $330,687.82. This trade represents a 49.97% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CFO Jason M. Cardew sold 5,000 shares of Lear stock in a transaction dated Tuesday, June 2nd. The stock was sold at an average price of $147.50, for a total value of $737,500.00. Following the sale, the chief financial officer owned 13,241 shares of the company's stock, valued at approximately $1,953,047.50. This represents a 27.41% decrease in their position. The SEC filing for this sale provides additional information. In the last quarter, insiders have sold 11,880 shares of company stock valued at $1,708,003. 1.02% of the stock is currently owned by company 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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