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

Key Points

• Lear Corporation has an average analyst rating of "Hold" across 15 research firms, with nine holds, five buys, and one strong buy. The average 12-month price target is about $143.38.
• The company recently reported better-than-expected quarterly earnings, posting EPS of $3.87 versus estimates of $3.51, while revenue came in slightly below consensus at $5.82 billion. Revenue still rose 4.7% year over year.
• Lear also paid a quarterly dividend of $0.77, or $3.08 annually, which implies a 2.4% yield and a payout ratio of 30.8%. Meanwhile, insiders have been selling shares, with about $8.5 million sold over the last 90 days.

Lear Corporation (NYSE:LEA - Get Free Report) has been given an average rating of "Hold" by the fifteen research firms that are covering the company, MarketBeat Ratings reports. Nine analysts have rated the stock with a hold recommendation, five have issued a buy recommendation and one has assigned a strong buy recommendation to the company. The average 12-month target price among analysts that have issued ratings on the stock in the last year is $143.3846.

Several equities analysts have recently commented on the company. Deutsche Bank Aktiengesellschaft set a $133.00 target price on Lear in a research report on Monday, May 4th. JPMorgan Chase & Co. lifted their price objective on shares of Lear from $152.00 to $153.00 and gave the stock an "overweight" rating in a research note on Thursday, May 14th. Barclays increased their target price on shares of Lear from $140.00 to $150.00 and gave the stock an "equal weight" rating in a research report on Tuesday, May 5th. Morgan Stanley set a $130.00 target price on shares of Lear in a report on Monday, May 4th. Finally, Weiss Ratings upgraded Lear from a "hold (c+)" rating to a "buy (b-)" rating in a research report on Tuesday, June 23rd.

Lear Price Performance

Shares of LEA opened at $130.66 on Thursday. The company's 50-day moving average is $137.55 and its 200-day moving average is $128.53. The company has a debt-to-equity ratio of 0.51, a current ratio of 1.33 and a quick ratio of 1.05. The firm has a market capitalization of $6.55 billion, a PE ratio of 13.07, a PEG ratio of 0.67 and a beta of 1.25. Lear has a fifty-two week low of $91.67 and a fifty-two week high of $150.33.

Lear (NYSE:LEA - Get Free Report) last announced its earnings results on Friday, May 1st. The auto parts company reported $3.87 EPS for the quarter, topping the consensus estimate of $3.51 by $0.36. The business had revenue of $5.82 billion during 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%. Lear's revenue was up 4.7% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $3.12 EPS. Equities analysts forecast that Lear will post 14.64 EPS for the current year.

Lear Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Tuesday, June 23rd. Investors of record on Wednesday, June 3rd were paid a $0.77 dividend. This represents a $3.08 dividend on an annualized basis and a yield of 2.4%. The ex-dividend date of this dividend was Wednesday, June 3rd. Lear's payout ratio is 30.80%.

Key Stories Impacting Lear

Here are the key news stories impacting Lear this week:

• Neutral Sentiment: Zacks published a comparison piece asking whether auto, tire and truck stocks are lagging Lear this year, which is more of a sector/performance commentary than a new fundamental catalyst for the company. Article title

Insider Activity

In other Lear news, Director Conrad L. Mallett, Jr. sold 190 shares of the firm's stock in a transaction dated Wednesday, June 10th. The shares were sold at an average price of $141.34, for a total value of $26,854.60. Following the transaction, the director directly owned 1,683 shares of the company's stock, valued at $237,875.22. This trade represents a 10.14% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, SVP Nicholas Jon Roelli sold 2,336 shares of the business's stock in a transaction that occurred on Friday, May 22nd. The shares were sold at an average price of $141.38, for a total transaction of $330,263.68. Following the completion of the transaction, the senior vice president owned 2,339 shares of the company's stock, valued at $330,687.82. The trade was a 49.97% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last ninety days, insiders have sold 62,026 shares of company stock valued at $8,498,248. Corporate insiders own 1.02% of the company's stock.

Institutional Investors Weigh In On Lear

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Dimensional Fund Advisors LP increased its stake in shares of Lear by 3.8% in the 1st quarter. Dimensional Fund Advisors LP now owns 2,943,480 shares of the auto parts company's stock valued at $356,380,000 after purchasing an additional 107,678 shares during the last quarter. Schroder Investment Management Group lifted its position in shares of Lear by 0.3% during the 4th quarter. Schroder Investment Management Group now owns 1,830,466 shares of the auto parts company's stock worth $212,938,000 after buying an additional 5,409 shares during the last quarter. M&T Bank Corp lifted its position in shares of Lear by 46,707.8% during the 4th quarter. M&T Bank Corp now owns 951,602 shares of the auto parts company's stock worth $109,054,000 after buying an additional 949,569 shares during the last quarter. Jacobs Levy Equity Management Inc. boosted its stake in Lear by 7.8% in the fourth quarter. Jacobs Levy Equity Management Inc. now owns 791,293 shares of the auto parts company's stock valued at $90,682,000 after buying an additional 57,206 shares in the last quarter. Finally, AQR Capital Management LLC boosted its stake in Lear by 34.1% in the fourth quarter. AQR Capital Management LLC now owns 789,745 shares of the auto parts company's stock valued at $90,505,000 after buying an additional 200,617 shares in the last quarter. 97.04% of the stock is currently owned by institutional investors.

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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