Parkwood LLC Reduces Holdings in Lear Corporation $LEA

Key Points

• Parkwood LLC has reduced its stake in Lear Corporation by 5.8%, selling 6,979 shares, leaving it with 113,999 shares valued at approximately $10 million.
• The company reported $3.47 earnings per share for the last quarter, surpassing expectations of $3.23, with revenues reaching $6.03 billion.
• Lear Corporation declared a quarterly dividend of $0.77 per share, with an annual yield of 2.8%, and a payout ratio of approximately 35.94%.

Parkwood LLC decreased its stake in shares of Lear Corporation (NYSE:LEA - Free Report) by 5.8% during the 1st quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The fund owned 113,999 shares of the auto parts company's stock after selling 6,979 shares during the period. Parkwood LLC owned about 0.21% of Lear worth $10,057,000 at the end of the most recent quarter.

Other hedge funds also recently modified their holdings of the company. WPG Advisers LLC purchased a new position in shares of Lear during the first quarter valued at approximately $39,000. Putney Financial Group LLC purchased a new position in shares of Lear during the fourth quarter valued at approximately $58,000. Fifth Third Bancorp boosted its position in shares of Lear by 131.8% during the first quarter. Fifth Third Bancorp now owns 765 shares of the auto parts company's stock valued at $67,000 after buying an additional 435 shares during the last quarter. CX Institutional purchased a new position in shares of Lear during the first quarter valued at approximately $71,000. Finally, GAMMA Investing LLC boosted its position in shares of Lear by 57.9% during the first quarter. GAMMA Investing LLC now owns 938 shares of the auto parts company's stock valued at $83,000 after buying an additional 344 shares during the last quarter. Hedge funds and other institutional investors own 97.04% of the company's stock.

Analyst Ratings Changes

A number of analysts recently commented on LEA shares. Wells Fargo & Company lifted their price target on Lear from $102.00 to $111.00 and gave the stock an "equal weight" rating in a report on Tuesday. Bank of America raised their price target on shares of Lear from $110.00 to $115.00 and gave the stock a "buy" rating in a research note on Monday, June 16th. Morgan Stanley lowered their target price on Lear from $125.00 to $115.00 and set an "overweight" rating on the stock in a research note on Monday, May 19th. Barclays boosted their target price on Lear from $100.00 to $120.00 and gave the company an "equal weight" rating in a research note on Wednesday, July 16th. Finally, Wall Street Zen lowered Lear from a "strong-buy" rating to a "buy" rating in a research note on Saturday, August 9th. Four analysts have rated the stock with a Buy rating and eight have given a Hold rating to the company. According to data from MarketBeat, the stock has an average rating of "Hold" and an average target price of $113.73.

Insider Buying and Selling

In related news, Director Conrad L. Mallett, Jr. sold 1,187 shares of Lear stock in a transaction on Monday, June 16th. The shares were sold at an average price of $92.86, for a total value of $110,224.82. Following the transaction, the director owned 84 shares in the company, valued at $7,800.24. This trade represents a 93.39% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, CEO Raymond E. Scott sold 5,000 shares of the stock in a transaction dated Tuesday, July 29th. The shares were sold at an average price of $96.77, for a total value of $483,850.00. Following the sale, the chief executive officer owned 38,729 shares of the company's stock, valued at $3,747,805.33. This represents a 11.43% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 11,187 shares of company stock worth $1,086,425 in the last 90 days. 0.91% of the stock is owned by company insiders.

Lear Price Performance

Lear stock traded down $0.63 during midday trading on Tuesday, hitting $112.12. 43,462 shares of the company's stock were exchanged, compared to its average volume of 691,513. Lear Corporation has a 52-week low of $73.85 and a 52-week high of $115.47. The stock has a 50-day moving average price of $103.74 and a two-hundred day moving average price of $94.54. The company has a debt-to-equity ratio of 0.53, a quick ratio of 1.07 and a current ratio of 1.34. The company has a market cap of $5.97 billion, a P/E ratio of 13.08, a PEG ratio of 0.67 and a beta of 1.33.

Lear (NYSE:LEA - Get Free Report) last posted its quarterly earnings data on Friday, July 25th. The auto parts company reported $3.47 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $3.23 by $0.24. Lear had a return on equity of 13.94% and a net margin of 2.05%.The firm had revenue of $6.03 billion during the quarter, compared to analysts' expectations of $5.89 billion. During the same period in the prior year, the business earned $3.60 EPS. The company's revenue for the quarter was up .3% compared to the same quarter last year. Lear has set its FY 2025 guidance at EPS. On average, equities research analysts forecast that Lear Corporation will post 12.89 earnings per share for the current year.

Lear Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, September 23rd. Investors of record on Wednesday, September 3rd will be given a $0.77 dividend. This represents a $3.08 dividend on an annualized basis and a yield of 2.7%. The ex-dividend date is Wednesday, September 3rd. Lear's dividend payout ratio (DPR) is presently 35.94%.

About Lear

Lear Corporation designs, develops, engineers, manufactures, assembles, and supplies automotive seating, and electrical distribution systems and related components for automotive original equipment manufacturers in North America, Europe, Africa, Asia, and South America. Its Seating segment offers seat systems, seat subsystems, keyseat components, seat trim covers, seat mechanisms, seat foams, and headrests, as well as surface materials, such as leather and fabric for automobiles and light trucks, compact cars, pick-up trucks, and sport utility vehicles.