Lear Corporation $LEA Shares Sold by Hsbc Holdings PLC

Key Points

• Hsbc Holdings PLC cut its Lear position by 42.6% in the fourth quarter, selling 10,447 shares and ending with 14,049 shares worth about $1.61 million.
• Lear beat earnings expectations in its latest quarter, posting $3.87 EPS versus the $3.51 consensus, while revenue came in at $5.82 billion and was up 4.7% year over year.
• Analyst sentiment remains mixed but slightly constructive, with TD Cowen upgrading the stock to buy and JPMorgan raising its target, though the overall average rating is still Hold with a $143.38 price target.

Hsbc Holdings PLC reduced its position in Lear Corporation (NYSE:LEA - Free Report) by 42.6% in the 4th quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 14,049 shares of the auto parts company's stock after selling 10,447 shares during the quarter. Hsbc Holdings PLC's holdings in Lear were worth $1,610,000 as of its most recent SEC filing.

Other institutional investors and hedge funds also recently bought and sold shares of the company. UMB Bank n.a. boosted its stake in shares of Lear by 15.0% in the fourth quarter. UMB Bank n.a. now owns 676 shares of the auto parts company's stock valued at $77,000 after purchasing an additional 88 shares during the period. Inspire Advisors LLC lifted its holdings in Lear by 4.5% during the 4th quarter. Inspire Advisors LLC now owns 2,147 shares of the auto parts company's stock worth $246,000 after buying an additional 92 shares in the last quarter. Pallas Capital Advisors LLC boosted its position in Lear by 4.3% in the 4th quarter. Pallas Capital Advisors LLC now owns 2,389 shares of the auto parts company's stock valued at $274,000 after buying an additional 99 shares during the period. Allworth Financial LP boosted its position in Lear by 32.0% in the 4th quarter. Allworth Financial LP now owns 408 shares of the auto parts company's stock valued at $47,000 after buying an additional 99 shares during the period. Finally, Advisors Asset Management Inc. grew its stake in shares of 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 acquiring an additional 121 shares in the last quarter. 97.04% of the stock is currently owned by hedge funds and other institutional investors.

Lear Trading Up 0.0%

LEA opened at $133.83 on Wednesday. The company has a debt-to-equity ratio of 0.51, a quick ratio of 1.05 and a current ratio of 1.33. Lear Corporation has a one year low of $91.67 and a one year high of $150.33. The company has a market cap of $6.71 billion, a P/E ratio of 13.38, a PEG ratio of 0.68 and a beta of 1.23. The business's 50-day simple moving average is $137.17 and its 200-day simple moving average is $127.85.

Lear (NYSE:LEA - Get Free Report) last posted its earnings results on Friday, May 1st. The auto parts company reported $3.87 earnings per share for the quarter, topping the consensus estimate 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 revenue was up 4.7% compared to the same quarter last year. During the same quarter in the previous year, the business earned $3.12 earnings per share. As a group, equities research analysts expect that Lear Corporation will post 14.64 EPS for the current fiscal year.

Lear Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Tuesday, June 23rd. Stockholders of record on Wednesday, June 3rd were issued a $0.77 dividend. The ex-dividend date was Wednesday, June 3rd. This represents a $3.08 annualized dividend and a dividend yield of 2.3%. Lear's dividend payout ratio is presently 30.80%.

Insider Activity at Lear

In related news, Director Conrad L. Mallett, Jr. sold 190 shares of the business's stock in a transaction on Wednesday, June 10th. The shares were sold at an average price of $141.34, for a total value of $26,854.60. Following the completion of the sale, the director directly owned 1,683 shares of the company's stock, valued at $237,875.22. The trade was a 10.14% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CFO Jason M. Cardew sold 5,000 shares of the firm's 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 transaction, the chief financial officer directly owned 13,241 shares in the company, valued at approximately $1,953,047.50. The trade was a 27.41% decrease in their position. The SEC filing for this sale provides additional information. Over the last 90 days, insiders sold 62,026 shares of company stock valued at $8,498,248. Corporate insiders own 1.02% of the company's stock.

Lear News Summary

Here are the key news stories impacting Lear this week:

• Positive Sentiment: Lear said the StoneShield acquisition should strengthen its automation capabilities, which could support efficiency, manufacturing flexibility, and longer-term margin improvement. Lear expands automation capabilities with StoneShield acquisition
• Neutral Sentiment: Several unrelated articles in the feed covered learning software, AI in education, and crypto topics, with no direct impact on Lear’s core auto parts business.

Analysts Set New Price Targets

Several research analysts recently commented on LEA shares. JPMorgan Chase & Co. boosted their target price on Lear from $152.00 to $153.00 and gave the stock an "overweight" rating in a research note on Thursday, May 14th. TD Cowen raised Lear from a "hold" rating to a "buy" rating and increased their price target for the company from $138.00 to $165.00 in a research report on Tuesday, May 26th. Deutsche Bank Aktiengesellschaft set a $133.00 price objective on Lear in a research note on Monday, May 4th. UBS Group lowered their price objective on Lear from $145.00 to $135.00 and set a "neutral" rating for the company in a research report on Tuesday, April 14th. Finally, Weiss Ratings raised shares of Lear from a "hold (c+)" rating to a "buy (b-)" rating in a report on Tuesday, June 23rd. One investment analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating and nine have issued a Hold rating to the stock. According to data from MarketBeat, the company has an average rating of "Hold" and an average target price of $143.38.

Lear Company 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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