Insider Selling: Lear (NYSE:LEA) Director Sells $199,742.10 in Stock

Key Points

• Lear director Conrad Mallett Jr. sold nearly all his holdings: He sold 1,646 shares for $199,742 at an average price of $121.35, leaving him with just 37 shares—a 97.8% reduction in his position.
• Quarterly results exceeded expectations: Lear reported EPS of $4.28 versus the $3.98 consensus and revenue of $6.21 billion, up 3% year over year. The company also raised its 2026 share-repurchase target to at least $350 million.
• Shares remain below key moving averages despite a relatively low valuation: Lear traded near $122.80, with a market capitalization of $6.06 billion and a P/E ratio of 11.44. Analysts maintain a consensus “Hold” rating with an average price target of $145.23, while the company offers a 2.5% dividend yield.

Lear Corporation (NYSE:LEA - Get Free Report) Director Conrad Mallett, Jr. sold 1,646 shares of Lear stock in a transaction dated Thursday, August 6th. The shares were sold at an average price of $121.35, for a total value of $199,742.10. Following the transaction, the director owned 37 shares of the company's stock, valued at $4,489.95. The trade was a 97.80% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink.

Lear Stock Performance

Lear stock traded up $3.72 during mid-day trading on Friday, hitting $122.80. The company had a trading volume of 562,304 shares, compared to its average volume of 732,367. The company has a current ratio of 1.31, a quick ratio of 1.04 and a debt-to-equity ratio of 0.51. The company's fifty day moving average is $138.05 and its 200-day moving average is $131.10. Lear Corporation has a 12-month low of $95.27 and a 12-month high of $150.33. The company has a market capitalization of $6.06 billion, a price-to-earnings ratio of 11.44, a P/E/G ratio of 0.57 and a beta of 1.25.

Lear (NYSE:LEA - Get Free Report) last announced its quarterly earnings results on Friday, July 31st. The auto parts company reported $4.28 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $3.98 by $0.30. Lear had a net margin of 2.35% and a return on equity of 14.18%. The firm had revenue of $6.21 billion for the quarter, compared to the consensus estimate of $6.15 billion. During the same period in the prior year, the firm posted $3.06 earnings per share. The firm's quarterly revenue was up 3.0% compared to the same quarter last year. Equities research analysts predict that Lear Corporation will post 14.84 EPS for the current year.

Lear Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Tuesday, June 23rd. Stockholders of record on Wednesday, June 3rd were paid a dividend of $0.77 per share. This represents a $3.08 annualized dividend and a dividend yield of 2.5%. The ex-dividend date of this dividend was Wednesday, June 3rd. Lear's dividend payout ratio is presently 28.70%.

Lear News Roundup

Here are the key news stories impacting Lear this week:

• Positive Sentiment: Q2 earnings beat expectations: Lear reported adjusted earnings per share of $4.28 versus the $3.98 consensus estimate, while revenue reached $6.21 billion, ahead of the $6.15 billion forecast and up 3% year over year. Results were supported by margin expansion in the E-Systems segment. LEA Q2 Earnings Beat Estimates on E-Systems Margin Expansion
• Positive Sentiment: Buyback target raised: Lear increased its 2026 share-repurchase target to at least $350 million. The larger buyback could support earnings per share and signals management’s confidence in cash generation and the stock’s valuation.
• Neutral Sentiment: Valuation remains relatively low: Lear trades at roughly 11 times earnings, with analysts forecasting approximately $14.84 in full-year EPS. However, shares remain below their 50-day and 200-day moving averages, indicating that investors are still cautious about the auto-supply-chain and broader vehicle-production outlook.
• Negative Sentiment: Director sold nearly all holdings: Director Conrad L. Mallett Jr. sold 1,646 shares for approximately $199,742, leaving him with only 37 shares. Although insider sales can reflect personal financial considerations, the 97.8% reduction in his position may create a modest negative signal for investors. SEC insider ownership filing

Institutional Trading of Lear

Several institutional investors have recently added to or reduced their stakes in the stock. Altshuler Shaham Ltd acquired a new stake in shares of Lear in the fourth quarter valued at $25,000. WealthCollab LLC acquired a new position in Lear during the 2nd quarter worth about $28,000. Los Angeles Capital Management LLC purchased a new position in Lear during the 4th quarter valued at about $30,000. Allworth Financial LP increased its stake in Lear by 62.6% during the third quarter. Allworth Financial LP now owns 309 shares of the auto parts company's stock worth $31,000 after purchasing an additional 119 shares during the period. Finally, Global Retirement Partners LLC lifted its position 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 worth $31,000 after purchasing an additional 245 shares in the last quarter. Institutional investors and hedge funds own 97.04% of the company's stock.

Wall Street Analysts Forecast Growth

A number of equities analysts have commented on LEA shares. Weiss Ratings raised Lear from a "hold (c+)" rating to a "buy (b-)" rating in a report on Tuesday, June 23rd. The Goldman Sachs Group restated a "neutral" rating and set a $140.00 price objective on shares of Lear in a research report on Saturday, August 1st. Morgan Stanley set a $130.00 target price on shares of Lear in a report on Monday, May 4th. TD Cowen raised shares of 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 note on Tuesday, May 26th. Finally, UBS Group lowered their price target on Lear from $145.00 to $135.00 and set a "neutral" rating for the company in a report on Tuesday, April 14th. One analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating and ten have given a Hold rating to the stock. Based on data from MarketBeat.com, the company presently has a consensus rating of "Hold" and an average price target of $145.23.

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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