Pzena Investment Management LLC Reduces Holdings in Lear Corporation $LEA

Key Points

• Pzena Investment Management reduced its Lear stake by 9.5% in the first quarter, selling 708,849 shares and leaving it with 6.76 million shares worth about $818.3 million. Lear remained a major holding, making up 2.7% of Pzena’s portfolio.
• Insiders have been selling shares, including CEO Raymond E. Scott and CFO Jason M. Cardew, with total insider sales of 62,026 shares worth about $8.5 million over the past three months. Insiders now own just 1.02% of the company.
• Lear recently beat earnings expectations, reporting Q1 EPS of $3.87 versus estimates of $3.51, while revenue grew 4.7% year over year. The company also paid a quarterly dividend of $0.77, implying a 2.4% annual yield.

Pzena Investment Management LLC cut its stake in Lear Corporation (NYSE:LEA - Free Report) by 9.5% in the 1st quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The firm owned 6,758,505 shares of the auto parts company's stock after selling 708,849 shares during the period. Lear accounts for approximately 2.7% of Pzena Investment Management LLC's portfolio, making the stock its 14th largest position. Pzena Investment Management LLC owned 13.35% of Lear worth $818,320,000 at the end of the most recent reporting period.

Several other large investors have also bought and sold shares of LEA. Altshuler Shaham Ltd bought a new stake in shares of Lear during the fourth quarter valued at approximately $25,000. WealthCollab LLC purchased a new position in Lear during the second quarter valued at $28,000. Los Angeles Capital Management LLC purchased a new stake in Lear in the fourth quarter worth about $30,000. Allworth Financial LP increased its stake in shares of Lear by 62.6% during the third quarter. Allworth Financial LP now owns 309 shares of the auto parts company's stock valued at $31,000 after purchasing an additional 119 shares in the last quarter. Finally, Global Retirement Partners LLC lifted its holdings in shares of Lear by 942.3% during the fourth quarter. Global Retirement Partners LLC now owns 271 shares of the auto parts company's stock valued at $31,000 after purchasing an additional 245 shares during the last quarter. 97.04% of the stock is owned by institutional investors.

Insider Buying and Selling at Lear

In other news, CEO Raymond E. Scott sold 50,000 shares of the company's stock in a transaction on Wednesday, June 24th. The stock was sold at an average price of $135.37, for a total value of $6,768,500.00. Following the completion of the sale, the chief executive officer directly owned 49,789 shares in the company, valued at $6,739,936.93. This represents a 50.11% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this link. Also, CFO Jason M. Cardew sold 5,000 shares of Lear stock in a transaction on Tuesday, June 2nd. The shares were sold at an average price of $147.50, for a total value of $737,500.00. Following the transaction, the chief financial officer owned 13,241 shares in the company, valued at $1,953,047.50. This trade represents a 27.41% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 62,026 shares of company stock valued at $8,498,248 over the last three months. Insiders own 1.02% of the company's stock.

Lear Stock Performance

Shares of LEA stock opened at $130.53 on Thursday. 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 company has a 50 day moving average price of $137.20 and a 200-day moving average price of $127.97. Lear Corporation has a 52 week low of $91.67 and a 52 week high of $150.33. The firm has a market capitalization of $6.54 billion, a PE ratio of 13.05, a P/E/G ratio of 0.68 and a beta of 1.25.

Lear (NYSE:LEA - Get Free Report) last issued its quarterly earnings data on Friday, May 1st. The auto parts company reported $3.87 earnings per share for the quarter, beating analysts' consensus estimates of $3.51 by $0.36. The company had revenue of $5.82 billion for the quarter, compared to the consensus estimate of $5.84 billion. Lear had a net margin of 2.25% and a return on equity of 13.69%. The firm's revenue for the quarter was up 4.7% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $3.12 earnings per share. As a group, equities research analysts expect that Lear Corporation will post 14.64 earnings per share for the current year.

Lear Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Tuesday, June 23rd. Shareholders of record on Wednesday, June 3rd were given a $0.77 dividend. The ex-dividend date was Wednesday, June 3rd. This represents a $3.08 annualized dividend and a yield of 2.4%. Lear's dividend payout ratio (DPR) is presently 30.80%.

Analyst Upgrades and Downgrades

LEA has been the subject of a number of analyst reports. Citigroup raised their price objective on Lear from $177.00 to $179.00 and gave the company a "buy" rating in a research report on Monday, May 4th. Morgan Stanley set a $130.00 target price on Lear in a research note on Monday, May 4th. TD Cowen upgraded Lear from a "hold" rating to a "buy" rating and raised their price target for the company from $138.00 to $165.00 in a report on Tuesday, May 26th. Barclays lifted their price target on Lear from $140.00 to $150.00 and gave the stock an "equal weight" rating in a research report on Tuesday, May 5th. Finally, The Goldman Sachs Group increased their price objective on shares of Lear from $115.00 to $131.00 and gave the company a "neutral" rating in a research report on Monday, May 4th. One analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating and nine have given a Hold rating to the company's stock. Based on data from MarketBeat, the company presently has a consensus rating of "Hold" and a consensus price target of $143.38.

Trending Headlines about Lear

Here are the key news stories impacting Lear this week:

• Neutral Sentiment: No material Lear-specific news was reported in the supplied articles, suggesting the stock’s move is likely being driven by broader market factors or normal trading activity rather than a fresh company announcement.
• Neutral Sentiment: Earlier background remains supportive: Lear recently reported quarterly EPS of $3.87, beating estimates, while revenue came in roughly in line with expectations and sales were up year over year, which may continue to underpin investor sentiment.

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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