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

Key Points

• Fifteen brokerages have a consensus recommendation of Hold on Lear, with an average 12‑month price target of $134.92 (11 holds, 3 buys, 1 strong buy).
• Analysts are divided: UBS and Goldman cut price targets (to $135 and $115) and stayed neutral, while Wall Street Zen and Argus upgraded Lear to strong‑buy, signaling mixed sentiment on near‑term outlook.
• Near‑term catalysts and risks include expected earnings growth next week that could boost the stock, but a ~17% rise in short interest to ~1.99M shares (~4% of float) and recent insider selling increase downside volatility risk.

Lear Corporation (NYSE:LEA - Get Free Report) has been assigned a consensus recommendation of "Hold" from the fifteen brokerages that are currently covering the company, Marketbeat reports. Eleven investment analysts have rated the stock with a hold recommendation, three have issued a buy recommendation and one has issued a strong buy recommendation on the company. The average 12-month price objective among brokerages that have issued ratings on the stock in the last year is $134.9231.

A number of research firms have recently weighed in on LEA. UBS Group cut their price target on Lear from $145.00 to $135.00 and set a "neutral" rating for the company in a research note on Tuesday, April 14th. The Goldman Sachs Group cut their price target on Lear from $129.00 to $115.00 and set a "neutral" rating for the company in a research note on Tuesday, April 14th. Weiss Ratings reaffirmed a "hold (c)" rating on shares of Lear in a research note on Thursday, January 22nd. Wall Street Zen raised Lear from a "buy" rating to a "strong-buy" rating in a research note on Friday, January 23rd. Finally, Argus raised Lear to a "strong-buy" rating in a research note on Monday, February 9th.

Key Lear News

Here are the key news stories impacting Lear this week:

• Positive Sentiment: Wall Street expects earnings growth next week for Lear, and analysts see the company as positioned to beat consensus in the upcoming report — a potential catalyst that could support the stock if results and guidance are strong. Lear (LEA) Reports Next Week: Wall Street Expects Earnings Growth
• Neutral Sentiment: Recent commentary assessing Lear’s valuation after its recent share‑price run could prompt profit‑taking or consolidation; investors may be awaiting the upcoming earnings print and updated guidance before committing to new long positions. Assessing Lear (LEA) Valuation After Recent Share Price Momentum
• Negative Sentiment: Short interest rose sharply in April — up ~17% to ~1.99 million shares as of April 15 (about 4% of the float) with a short‑interest ratio near 4.1 days. That increase in short positioning adds selling pressure and volatility risk and is likely a key driver of today’s weakness as shorts and profit‑taking intersect ahead of earnings.

Lear Stock Down 1.0%

LEA opened at $128.37 on Friday. Lear has a fifty-two week low of $82.88 and a fifty-two week high of $142.84. The business has a 50-day moving average of $123.76 and a 200-day moving average of $117.01. The company has a debt-to-equity ratio of 0.52, a current ratio of 1.35 and a quick ratio of 1.05. The company has a market capitalization of $6.50 billion, a PE ratio of 15.75, a price-to-earnings-growth ratio of 0.82 and a beta of 1.24.

Lear (NYSE:LEA - Get Free Report) last posted its quarterly earnings results on Wednesday, February 4th. The auto parts company reported $3.41 earnings per share for the quarter, topping analysts' consensus estimates of $2.67 by $0.74. Lear had a return on equity of 13.40% and a net margin of 1.88%.The company had revenue of $5.99 billion during the quarter, compared to the consensus estimate of $5.78 billion. During the same period last year, the business earned $2.94 EPS. The business's quarterly revenue was up 4.8% on a year-over-year basis. Equities research analysts forecast that Lear will post 14.21 EPS for the current fiscal year.

Lear Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Wednesday, March 25th. Investors of record on Thursday, March 5th were paid a $0.77 dividend. This represents a $3.08 dividend on an annualized basis and a dividend yield of 2.4%. The ex-dividend date of this dividend was Thursday, March 5th. Lear's dividend payout ratio (DPR) is presently 37.79%.

Insider Buying and Selling

In related news, SVP Harry Albert Kemp sold 7,000 shares of the firm's stock in a transaction that occurred on Thursday, February 19th. The stock was sold at an average price of $136.31, for a total value of $954,170.00. Following the transaction, the senior vice president directly owned 17,423 shares of the company's stock, valued at approximately $2,374,929.13. This trade represents a 28.66% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this link. Also, SVP Alicia J. Davis sold 6,630 shares of the firm's stock in a transaction that occurred on Thursday, February 19th. The shares were sold at an average price of $132.98, for a total value of $881,657.40. Following the completion of the transaction, the senior vice president directly owned 9,972 shares in the company, valued at $1,326,076.56. The trade was a 39.93% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 25,264 shares of company stock valued at $3,400,687 over the last 90 days. 1.02% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in the stock. Dimensional Fund Advisors LP raised its stake in shares of Lear by 1.9% in the 4th quarter. Dimensional Fund Advisors LP now owns 2,835,802 shares of the auto parts company's stock valued at $324,990,000 after acquiring an additional 51,692 shares in the last quarter. Schroder Investment Management Group raised its stake in shares of Lear by 0.3% in the 4th quarter. Schroder Investment Management Group now owns 1,830,466 shares of the auto parts company's stock valued at $212,938,000 after acquiring an additional 5,409 shares in the last quarter. American Century Companies Inc. raised its stake in shares of Lear by 23.6% in the 3rd quarter. American Century Companies Inc. now owns 1,569,341 shares of the auto parts company's stock valued at $157,891,000 after acquiring an additional 299,841 shares in the last quarter. M&T Bank Corp increased its position in Lear by 46,707.8% in 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 period. Finally, Jacobs Levy Equity Management Inc. increased its position in Lear by 7.8% in the 4th quarter. Jacobs Levy Equity Management Inc. now owns 791,293 shares of the auto parts company's stock worth $90,682,000 after buying an additional 57,206 shares during the period. 97.04% of the stock is 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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