Insider Selling: Lear (NYSE:LEA) CEO Sells $6,768,500.00 in Stock

Key Points

• Lear CEO Raymond Scott sold 50,000 shares on June 24 at an average price of $135.37, generating about $6.77 million and cutting his stake by roughly 50.11%.
• The stock was trading higher at $137.78 in Thursday midday trading, near its 50-day average of $136.04 and below its 52-week high of $150.33.
• Analysts remain cautious overall despite some raised price targets, with Lear carrying a consensus Hold rating and a consensus target price of $143.38.

Lear Corporation (NYSE:LEA - Get Free Report) CEO Raymond Scott sold 50,000 shares of the firm's stock in a transaction that occurred on Wednesday, June 24th. The shares were sold at an average price of $135.37, for a total transaction of $6,768,500.00. Following the completion of the sale, the chief executive officer owned 49,789 shares in the company, valued at $6,739,936.93. The trade was a 50.11% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink.

Lear Price Performance

NYSE:LEA traded up $2.20 during midday trading on Thursday, hitting $137.78. 439,923 shares of the stock were exchanged, compared to its average volume of 602,322. The company has a market capitalization of $6.90 billion, a price-to-earnings ratio of 13.78, a P/E/G ratio of 0.69 and a beta of 1.23. 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 Corporation has a one year low of $91.67 and a one year high of $150.33. The business has a 50-day moving average price of $136.04 and a two-hundred day moving average price of $127.07.

Lear (NYSE:LEA - Get Free Report) last released its earnings results 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 business 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 business's revenue for the quarter was up 4.7% on a year-over-year basis. During the same period in the previous year, the firm earned $3.12 EPS. Sell-side analysts predict that Lear Corporation will post 14.61 EPS for the current year.

Lear Dividend Announcement

The business also recently announced 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 dividend on an annualized basis and a yield of 2.2%. Lear's dividend payout ratio is presently 30.80%.

Institutional Trading of Lear

Several large investors have recently added to or reduced their stakes in LEA. Edgestream Partners L.P. acquired a new position in Lear during the 1st quarter worth about $5,658,000. Bull Harbor Capital LLC acquired a new stake in Lear in the 1st quarter valued at about $238,000. Altshuler Shaham Ltd raised its stake in shares of 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 acquiring an additional 81 shares during the last quarter. Amundi raised its stake in shares of Lear by 308.3% in the first quarter. Amundi now owns 49,064 shares of the auto parts company's stock worth $5,941,000 after acquiring an additional 37,048 shares during the last quarter. Finally, EverSource Wealth Advisors LLC lifted its position in shares of Lear by 40.3% during the first quarter. EverSource Wealth Advisors LLC now owns 1,298 shares of the auto parts company's stock worth $157,000 after purchasing an additional 373 shares in the last quarter. 97.04% of the stock is owned by institutional investors.

Key Headlines Impacting Lear

Here are the key news stories impacting Lear this week:

• Positive Sentiment: Wells Fargo lifted its price target on Lear, which can reinforce investor confidence that the stock’s recent strength is being recognized by analysts. Benzinga
• Neutral Sentiment: The updated $137 target is only slightly below the current trading level, implying the stock may be fairly valued after its recent run rather than meaningfully undervalued. Benzinga
• Neutral Sentiment: The unchanged equal weight rating indicates Wells Fargo sees Lear as a hold rather than a clear outperformer, so the update is supportive but not a major catalyst. Benzinga

Analysts Set New Price Targets

Several analysts have recently issued reports on the company. JPMorgan Chase & Co. upped their price target on Lear from $152.00 to $153.00 and gave the stock an "overweight" rating in a research note on Thursday, May 14th. UBS Group lowered their target price on shares of Lear from $145.00 to $135.00 and set a "neutral" rating on the stock in a research note on Tuesday, April 14th. The Goldman Sachs Group raised their price target on Lear from $115.00 to $131.00 and gave the company a "neutral" rating in a research report on Monday, May 4th. Morgan Stanley set a $130.00 price objective on Lear in a research report on Monday, May 4th. Finally, Barclays raised their target price on Lear from $140.00 to $150.00 and gave the company an "equal weight" rating in a report on Tuesday, May 5th. One analyst has rated the stock with a Strong Buy rating, five have given a Buy rating and nine have given a Hold rating to the company's stock. According to MarketBeat.com, Lear has a consensus rating of "Hold" and a consensus 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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