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

Key Points

• Analysts maintain a “Hold” consensus: Of 15 analysts covering Lear, nine rate it a hold, five recommend buying, and one gives a strong-buy rating. The average 12-month price target is approximately $145.31 versus a share price of $130.63.
• Lear exceeded quarterly expectations and raised its outlook: The auto-parts supplier reported adjusted EPS of $4.28 and revenue of $6.21 billion, surpassing estimates of $3.98 and $6.15 billion, respectively. Management raised the midpoints of its 2026 revenue and core operating-earnings guidance.
• Shareholders received a quarterly dividend of $0.77: Lear’s annualized dividend is $3.08 per share, yielding about 2.4%, with a payout ratio of 30.8%. Recent insider activity was negative, with insiders selling shares and making no reported purchases over the past six months.

Shares of Lear Corporation (NYSE:LEA - Get Free Report) have earned a consensus recommendation of "Hold" from the fifteen analysts that are currently covering the company, Marketbeat reports. Nine research analysts have rated the stock with a hold recommendation, five have given a buy recommendation and one has issued a strong buy recommendation on the company. The average 1 year price objective among brokers that have updated their coverage on the stock in the last year is $145.3077.

LEA has been the subject of a number of recent research reports. The Goldman Sachs Group reiterated a "neutral" rating and issued a $140.00 target price on shares of Lear in a report on Saturday. Citigroup boosted their target price on shares of Lear from $177.00 to $179.00 and gave the company a "buy" rating in a research note on Monday, May 4th. TD Cowen upgraded shares of Lear from a "hold" rating to a "buy" rating and upped their price target for the stock from $138.00 to $165.00 in a report on Tuesday, May 26th. Royal Bank Of Canada raised their price target on shares of Lear from $138.00 to $143.00 and gave the stock a "sector perform" rating in a research note on Monday, July 13th. Finally, Wells Fargo & Company lifted their price objective on shares of Lear from $133.00 to $137.00 and gave the company an "equal weight" rating in a report on Thursday, June 25th.

Lear Trading Down 0.0%

Shares of LEA opened at $130.63 on Monday. The stock has a market capitalization of $6.54 billion, a PE ratio of 12.17, a P/E/G ratio of 0.63 and a beta of 1.25. The company's fifty day moving average is $140.07 and its 200 day moving average is $131.16. The company has a debt-to-equity ratio of 0.51, a quick ratio of 1.04 and a current ratio of 1.31. 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 released its quarterly earnings data on Friday, July 31st. The auto parts company reported $4.28 EPS for the quarter, beating the consensus estimate of $3.98 by $0.30. Lear had a net margin of 2.35% and a return on equity of 14.18%. The business had revenue of $6.21 billion during the quarter, compared to analyst estimates of $6.15 billion. During the same quarter last year, the business earned $3.06 earnings per share. Lear's quarterly revenue was up 3.0% compared to the same quarter last year. Sell-side analysts expect that Lear will post 14.81 earnings per share for the current fiscal year.

Lear Dividend Announcement

The business also recently declared 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 2.4%. The ex-dividend date of this dividend was Wednesday, June 3rd. Lear's payout ratio is currently 30.80%.

Lear News Roundup

Here are the key news stories impacting Lear this week:

• Positive Sentiment: Lear reported second-quarter adjusted EPS of $4.28, above the approximately $3.98 consensus estimate, while revenue of $6.21 billion also exceeded expectations of roughly $6.15 billion. EPS rose from $3.06 a year earlier and revenue increased 3%. Lear Reports Second Quarter 2026 Results; Raises Full-Year Guidance
• Positive Sentiment: The company raised the midpoints of its 2026 outlook, targeting revenue of approximately $23.54 billion to $24.01 billion and core operating earnings of about $1.08 billion to $1.20 billion. Lear cited roughly 3% year-over-year revenue growth, gains above overall vehicle-market growth, and improving operating margins. Lear Reports Second Quarter 2026 Results; Raises Full-Year Guidance
• Positive Sentiment: Adjusted EPS increased about 23% year over year, free cash flow improved by approximately $117 million, and Lear repurchased $100 million of stock during the quarter. Lear Corporation 2026 Q2 Results Presentation
• Neutral Sentiment: Analyst price targets remain mixed, with recent targets ranging from $131 to $179 and a six-month median of $145.50, indicating differing views on Lear’s earnings power and automotive-market prospects.
• Negative Sentiment: Investors appear to have treated the results as a “sell-the-news” event because the guidance increase and margin improvement may not have exceeded already high expectations. Separately, reported insider activity showed 20 open-market sales and no purchases over the past six months, which may add to near-term sentiment pressure. Lear Slides After Q2 Despite Higher 2026 Outlook

Insider Transactions at Lear

In other Lear news, Director Conrad L. Mallett, Jr. sold 190 shares of the firm's stock in a transaction on Wednesday, June 10th. The stock was sold at an average price of $141.34, for a total transaction of $26,854.60. Following the transaction, the director directly owned 1,683 shares in the company, valued at $237,875.22. This trade represents a 10.14% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. Also, SVP Nicholas Jon Roelli sold 2,336 shares of the company's stock in a transaction on Friday, May 22nd. The stock was sold at an average price of $141.38, for a total value of $330,263.68. Following the completion of the sale, the senior vice president owned 2,339 shares of the company's stock, valued at $330,687.82. This represents a 49.97% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 62,026 shares of company stock worth $8,498,248 over the last three months. Company insiders own 1.02% of the company's stock.

Institutional Trading of Lear

Several institutional investors and hedge funds have recently made changes to their positions in LEA. Altshuler Shaham Ltd grew its holdings in Lear by 36.5% during the 1st quarter. Altshuler Shaham Ltd now owns 303 shares of the auto parts company's stock worth $37,000 after acquiring an additional 81 shares in the last quarter. Versant Capital Management Inc raised its holdings in shares of Lear by 3.8% in the 2nd quarter. Versant Capital Management Inc now owns 2,260 shares of the auto parts company's stock valued at $303,000 after purchasing an additional 82 shares in the last quarter. UMB Bank n.a. lifted its position in shares of Lear by 15.0% in the 4th quarter. UMB Bank n.a. now owns 676 shares of the auto parts company's stock worth $77,000 after purchasing an additional 88 shares during the period. Waterfront Wealth Inc. lifted its position in shares of Lear by 0.5% in the 1st quarter. Waterfront Wealth Inc. now owns 17,404 shares of the auto parts company's stock worth $2,107,000 after purchasing an additional 89 shares during the period. Finally, Inspire Advisors LLC boosted its stake in shares of Lear by 4.5% during the fourth quarter. Inspire Advisors LLC now owns 2,147 shares of the auto parts company's stock valued at $246,000 after purchasing an additional 92 shares in the last quarter. 97.04% of the stock is currently owned by institutional investors.

About Lear

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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