Lear Corporation (NYSE:LEA) Given Average Rating of "Hold" by Analysts

Key Points

• Lear Corporation (NYSE:LEA) has an average analyst rating of "Hold", with eight analysts recommending a hold and three a buy, while the average price target is $112.70.
• Recent insider trading includes CEO Raymond E. Scott selling 5,000 shares, reducing his ownership by 11.43%, while institutional investors increased their stake significantly in the company.
• Lear reported earnings of $3.47 per share, exceeding estimates of $3.23, and will pay a quarterly dividend of $0.77 on September 23rd, 2023.

Shares of Lear Corporation (NYSE:LEA - Get Free Report) have been assigned an average recommendation of "Hold" from the eleven ratings firms that are covering the stock, Marketbeat.com reports. Eight equities research analysts have rated the stock with a hold rating and three have given a buy rating to the company. The average twelve-month price objective among brokerages that have updated their coverage on the stock in the last year is $112.70.

LEA has been the subject of a number of research analyst reports. Citigroup boosted their price target on Lear from $123.00 to $136.00 and gave the company a "buy" rating in a report on Monday, June 30th. Wells Fargo & Company boosted their price target on Lear from $102.00 to $111.00 and gave the company an "equal weight" rating in a report on Tuesday, September 9th. Bank of America downgraded Lear from a "buy" rating to a "neutral" rating and lowered their price objective for the stock from $135.00 to $123.00 in a research note on Wednesday, September 10th. Barclays upped their price objective on Lear from $100.00 to $120.00 and gave the stock an "equal weight" rating in a research note on Wednesday, July 16th. Finally, Wall Street Zen downgraded Lear from a "strong-buy" rating to a "buy" rating in a research note on Saturday, August 9th.

Lear Stock Performance

Shares of NYSE LEA traded up $0.71 during trading on Friday, reaching $105.90. The stock had a trading volume of 704,222 shares, compared to its average volume of 579,307. Lear has a one year low of $73.85 and a one year high of $115.47. 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 stock has a market cap of $5.63 billion, a PE ratio of 12.36, a P/E/G ratio of 0.82 and a beta of 1.34. The firm's 50 day moving average price is $104.21 and its two-hundred day moving average price is $95.09.

Lear (NYSE:LEA - Get Free Report) last issued its quarterly earnings results on Friday, July 25th. The auto parts company reported $3.47 earnings per share for the quarter, beating 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 business had revenue of $6.03 billion during the quarter, compared to the consensus estimate of $5.89 billion. During the same period in the previous year, the business earned $3.60 EPS. The business's quarterly revenue was up .3% on a year-over-year basis. Lear has set its FY 2025 guidance at EPS. On average, research analysts forecast that Lear will post 12.89 earnings per share for the current fiscal year.

Lear Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, September 23rd. Stockholders of record on Wednesday, September 3rd will be paid a $0.77 dividend. The ex-dividend date of this dividend is Wednesday, September 3rd. This represents a $3.08 annualized dividend and a dividend yield of 2.9%. Lear's dividend payout ratio is presently 35.94%.

Insider Buying and Selling at Lear

In other news, CFO Jason M. Cardew sold 5,000 shares of the stock in a transaction on Tuesday, July 29th. The stock was sold at an average price of $98.47, for a total value of $492,350.00. Following the completion of the transaction, the chief financial officer owned 20,244 shares of the company's stock, valued at approximately $1,993,426.68. This represents a 19.81% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this link. Also, CEO Raymond E. Scott sold 5,000 shares of the stock in a transaction on Tuesday, July 29th. The stock was sold at an average price of $96.77, for a total value of $483,850.00. Following the completion of the transaction, the chief executive officer directly owned 38,729 shares of the company's stock, valued at approximately $3,747,805.33. The trade was a 11.43% decrease in their position. The disclosure for this sale can be found here. Corporate insiders own 0.91% of the company's stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently modified their holdings of the business. Hunter Perkins Capital Management LLC lifted its holdings in shares of Lear by 0.8% in the second quarter. Hunter Perkins Capital Management LLC now owns 13,846 shares of the auto parts company's stock valued at $1,315,000 after buying an additional 107 shares during the period. Janney Montgomery Scott LLC lifted its holdings in shares of Lear by 2.0% in the second quarter. Janney Montgomery Scott LLC now owns 6,158 shares of the auto parts company's stock valued at $585,000 after buying an additional 121 shares during the period. SummerHaven Investment Management LLC lifted its holdings in shares of Lear by 2.3% in the first quarter. SummerHaven Investment Management LLC now owns 6,785 shares of the auto parts company's stock valued at $599,000 after buying an additional 152 shares during the period. Wellington Management Group LLP lifted its holdings in shares of Lear by 5.2% in the fourth quarter. Wellington Management Group LLP now owns 3,709 shares of the auto parts company's stock valued at $351,000 after buying an additional 183 shares during the period. Finally, Treasurer of the State of North Carolina lifted its holdings in shares of Lear by 0.8% in the second quarter. Treasurer of the State of North Carolina now owns 24,918 shares of the auto parts company's stock valued at $2,367,000 after buying an additional 197 shares during the period. Institutional investors own 97.04% of the company's stock.

Lear Company Profile

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.