Lear Corporation (NYSE:LEA) Receives Consensus Rating of "Hold" from Brokerages

Key Points

• Lear Corporation has received a consensus rating of "Hold" from twelve brokerages, with nine analysts maintaining a hold rating and three issuing a buy rating.
• The average twelve-month price target among analysts is $113.70, indicating a potential upside from the current trading price of approximately $102.98.
• Lear's recent quarterly earnings exceeded expectations, reporting $3.47 EPS compared to a consensus estimate of $3.23 EPS, alongside a modest year-over-year revenue increase of 0.3%.

Lear Corporation (NYSE:LEA - Get Free Report) has been assigned an average rating of "Hold" from the twelve brokerages that are covering the firm, MarketBeat Ratings reports. Nine 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 analysts that have covered the stock in the last year is $113.70.

A number of analysts have recently commented on the company. Weiss Ratings restated a "hold (c)" rating on shares of Lear in a research report on Saturday, September 27th. Barclays boosted their price target on shares of Lear from $100.00 to $120.00 and gave the stock an "equal weight" rating in a report on Wednesday, July 16th. UBS Group reduced their price objective on shares of Lear from $109.00 to $106.00 and set a "neutral" rating for the company in a research report on Monday. The Goldman Sachs Group set a $104.00 target price on shares of Lear in a research report on Monday, September 29th. Finally, Wells Fargo & Company reduced their price target on shares of Lear from $113.00 to $108.00 and set an "equal weight" rating for the company in a research report on Friday.

Lear Trading Down 1.0%

Shares of Lear stock opened at $102.98 on Tuesday. The firm has a 50-day simple moving average of $103.47 and a two-hundred day simple moving average of $95.77. The company has a debt-to-equity ratio of 0.53, a quick ratio of 1.07 and a current ratio of 1.34. Lear has a fifty-two week low of $73.85 and a fifty-two week high of $113.10. The company has a market cap of $5.48 billion, a P/E ratio of 12.02, a price-to-earnings-growth ratio of 0.81 and a beta of 1.32.

Lear (NYSE:LEA - Get Free Report) last posted its earnings results on Friday, July 25th. The auto parts company reported $3.47 EPS for the quarter, beating analysts' consensus estimates of $3.23 by $0.24. The firm had revenue of $6.03 billion for the quarter, compared to analysts' expectations of $5.89 billion. Lear had a return on equity of 13.94% and a net margin of 2.05%.The company's quarterly revenue was up .3% on a year-over-year basis. During the same period last year, the firm earned $3.60 EPS. Lear has set its FY 2025 guidance at EPS. As a group, equities analysts predict that Lear will post 12.89 earnings per share for the current fiscal year.

Lear Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Tuesday, September 23rd. Shareholders of record on Wednesday, September 3rd were issued a dividend of $0.77 per share. The ex-dividend date of this dividend was Wednesday, September 3rd. This represents a $3.08 dividend on an annualized basis and a dividend yield of 3.0%. Lear's dividend payout ratio is presently 35.94%.

Insider Activity at Lear

In other news, CEO Raymond E. Scott sold 5,000 shares of Lear stock in a transaction that occurred 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 sale, the chief executive officer directly owned 38,729 shares of the company's stock, valued at $3,747,805.33. The trade was a 11.43% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, CFO Jason M. Cardew sold 5,000 shares of the business's stock in a transaction that occurred 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 sale, the chief financial officer owned 20,244 shares of the company's stock, valued at $1,993,426.68. The trade was a 19.81% decrease in their ownership of the stock. The disclosure for this sale can be found here. Company insiders own 0.91% of the company's stock.

Hedge Funds Weigh In On Lear

A number of institutional investors and hedge funds have recently bought and sold shares of LEA. GAMMA Investing LLC grew its position in shares of Lear by 14.8% in the third quarter. GAMMA Investing LLC now owns 1,834 shares of the auto parts company's stock valued at $185,000 after purchasing an additional 236 shares in the last quarter. Texas Permanent School Fund Corp raised its holdings in shares of Lear by 13.0% during the 2nd quarter. Texas Permanent School Fund Corp now owns 70,082 shares of the auto parts company's stock worth $6,656,000 after acquiring an additional 8,062 shares during the period. Orion Porfolio Solutions LLC raised its holdings in shares of Lear by 4.0% during the 2nd quarter. Orion Porfolio Solutions LLC now owns 6,307 shares of the auto parts company's stock worth $599,000 after acquiring an additional 242 shares during the period. Hudson Bay Capital Management LP purchased a new position in Lear during the second quarter worth about $4,174,000. Finally, WealthCollab LLC purchased a new stake in shares of Lear in the 2nd quarter valued at approximately $28,000. 97.04% of the stock is currently owned by institutional investors and hedge funds.

About Lear

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.

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