Lear (NYSE:LEA) CFO Sells $588,750.00 in Stock

Key Points

• CFO Jason Cardew sold 5,000 Lear shares for $588,750, reducing his direct stake by 37.76% to 8,241 shares.
• Lear reported third-quarter EPS of $3.71, beating estimates of $3.32, while revenue of $5.77 billion fell short of analysts’ $5.81 billion forecast.
• The company authorized a $1.5 billion share buyback and pays a quarterly dividend of $0.77 per share. Analysts’ consensus rating is “Hold,” with an average price target of $143.25.

Lear Corporation (NYSE:LEA - Get Free Report) CFO Jason Cardew sold 5,000 shares of the business's stock in a transaction dated Tuesday, November 3rd. The stock was sold at an average price of $117.75, for a total transaction of $588,750.00. Following the completion of the transaction, the chief financial officer directly owned 8,241 shares of the company's stock, valued at approximately $970,377.75. This represents a 37.76% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink.

Lear Price Performance

Shares of LEA traded up $1.85 during mid-day trading on Wednesday, hitting $118.62. 191,582 shares of the company traded hands, compared to its average volume of 601,475. Lear Corporation has a one year low of $99.00 and a one year high of $150.33. The company has a current ratio of 1.18, a quick ratio of 0.92 and a debt-to-equity ratio of 0.40. The business has a 50-day moving average of $121.93 and a 200 day moving average of $128.32. The stock has a market capitalization of $5.72 billion, a price-to-earnings ratio of 10.37, a PEG ratio of 0.69 and a beta of 1.28.

Lear (NYSE:LEA - Get Free Report) last issued its quarterly earnings results on Friday, October 30th. The auto parts company reported $3.71 earnings per share for the quarter, beating analysts' consensus estimates of $3.32 by $0.39. Lear had a net margin of 2.46% and a return on equity of 14.92%. The business had revenue of $5.77 billion during the quarter, compared to analyst estimates of $5.81 billion. During the same quarter last year, the business posted $2.79 earnings per share. Lear's revenue for the quarter was up 1.6% compared to the same quarter last year. As a group, equities analysts expect that Lear Corporation will post 14.93 earnings per share for the current fiscal year.

Lear Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Tuesday, September 22nd. Shareholders of record on Wednesday, September 2nd were given a $0.77 dividend. This represents a $3.08 dividend on an annualized basis and a yield of 2.6%. The ex-dividend date was Wednesday, September 2nd. Lear's dividend payout ratio (DPR) is presently 26.90%.

Lear announced that its board has approved a stock buyback plan on Thursday, September 24th that permits the company to repurchase $1.50 billion in shares. This repurchase authorization permits the auto parts company to repurchase up to 25.7% of its stock through open market purchases. Share repurchase plans are generally a sign that the company's board believes its stock is undervalued.

Key Lear News

Here are the key news stories impacting Lear this week:

• Positive Sentiment: Lear beat third-quarter EPS estimates, and a report said its shares rose after the results. The earnings call was characterized as showing resilient growth. Lear analyst forecasts after Q3 results Lear earnings call highlights
• Positive Sentiment: Shares crossed above the 50-day moving average, a potentially supportive technical signal, even as an analyst downgrade was reported. Lear shares break above 50-day moving average
• Negative Sentiment: Third-quarter revenue came in below expectations, and Lear cut its 2026 revenue guidance. Analysts lowered forecasts and price targets, while RBC cited a near-term China overhang. These concerns could limit upside despite the earnings-per-share beat. RBC cites near-term China overhang

Institutional Inflows and Outflows

A number of institutional investors have recently bought and sold shares of the company. Altshuler Shaham Ltd raised its holdings in Lear by 36.5% in the first quarter. Altshuler Shaham Ltd now owns 303 shares of the auto parts company's stock worth $37,000 after purchasing an additional 81 shares during the period. Putney Financial Group LLC acquired a new position in shares of Lear in the 3rd quarter valued at $37,000. Provenance Wealth Advisors LLC grew its holdings in shares of Lear by 5,166.7% in the 3rd quarter. Provenance Wealth Advisors LLC now owns 474 shares of the auto parts company's stock valued at $56,000 after buying an additional 465 shares during the period. Root Financial Partners LLC bought a new stake in shares of Lear in the 3rd quarter valued at $58,000. Finally, Mirae Asset Global Investments Co. Ltd. bought a new stake in shares of Lear in the 3rd quarter valued at $63,000. Institutional investors and hedge funds own 97.04% of the company's stock.

Wall Street Analyst Weigh In

Several brokerages have recently issued reports on LEA. BNP Paribas Exane lowered Lear from an "outperform" rating to a "neutral" rating in a research note on Monday, August 3rd. Deutsche Bank Aktiengesellschaft set a $131.00 price objective on Lear in a research report on Monday, August 3rd. JPMorgan Chase & Co. cut Lear from an "overweight" rating to a "neutral" rating and dropped their price objective for the stock from $175.00 to $150.00 in a report on Tuesday, September 15th. Weiss Ratings downgraded shares of Lear from a "buy (b-)" rating to a "hold (c+)" rating in a research report on Wednesday, September 9th. Finally, The Goldman Sachs Group cut their target price on shares of Lear from $140.00 to $124.00 and set a "buy" rating on the stock in a research report on Tuesday, October 6th. One analyst has rated the stock with a Strong Buy rating, three have given a Buy rating and twelve have assigned a Hold rating to the company's stock. According to data from MarketBeat.com, the company presently has an average rating of "Hold" and a consensus price target of $143.25.

About Lear

Lear Corporation is a global automotive technology company that designs and manufactures products used in passenger vehicles and commercial vehicles. Its operations are organized primarily around two areas: seating and e-systems. Lear supplies complete vehicle seating systems, including seats, structures, mechanisms, foam, covers and related components, as well as electrical distribution systems and other technologies that support vehicle power management and connectivity.

The company serves automotive manufacturers and their vehicle programs in major markets across North America, Europe, Asia and other regions.

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