Lear (NYSE:LEA) Lowered to Buy Rating by Wall Street Zen

Key Points

• Wall Street Zen downgraded Lear from “strong buy” to “buy,” while broader analyst sentiment remains cautious: the stock has an average “hold” rating and a consensus price target of $145.31.
• Lear’s latest quarter exceeded expectations, with adjusted EPS of $4.28 versus $3.98 expected and revenue of $6.21 billion versus $6.15 billion forecast; management also raised its 2026 outlook.
• Lear shares opened at $130.63, below the consensus target, but insiders have been net sellers, disposing of 62,026 shares worth approximately $8.5 million over the past 90 days.

Lear (NYSE:LEA - Get Free Report) was downgraded by stock analysts at Wall Street Zen from a "strong-buy" rating to a "buy" rating in a note issued to investors on Saturday.

LEA has been the topic of a number of other reports. JPMorgan Chase & Co. lifted their target price on Lear from $153.00 to $159.00 and gave the stock an "overweight" rating in a report on Friday, July 10th. TD Cowen upgraded shares of Lear from a "hold" rating to a "buy" rating and raised their price objective for the company from $138.00 to $165.00 in a research report on Tuesday, May 26th. Barclays lifted their price objective on shares of Lear from $150.00 to $155.00 and gave the stock an "equal weight" rating in a research note on Thursday, July 9th. UBS Group cut their target price on shares of Lear from $145.00 to $135.00 and set a "neutral" rating for the company in a research note on Tuesday, April 14th. Finally, Deutsche Bank Aktiengesellschaft set a $133.00 price target on shares of Lear in a research report on Monday, May 4th. One research analyst has rated the stock with a Strong Buy rating, five have given a Buy rating and nine have given a Hold rating to the stock. According to data from MarketBeat.com, Lear has an average rating of "Hold" and a consensus price target of $145.31.

Lear Price Performance

NYSE LEA opened at $130.63 on Friday. Lear has a 12 month low of $91.67 and a 12 month high of $150.33. The firm has a market capitalization of $6.54 billion, a PE ratio of 13.06, a P/E/G ratio of 0.71 and a beta of 1.25. The company's 50 day simple moving average is $140.07 and its 200 day simple moving average is $131.11. The company has a debt-to-equity ratio of 0.51, a current ratio of 1.33 and a quick ratio of 1.05.

Lear (NYSE:LEA - Get Free Report) last released its earnings results on Friday, July 31st. The auto parts company reported $4.28 earnings per share for the quarter, topping analysts' consensus estimates of $3.98 by $0.30. The firm had revenue of $6.21 billion during the quarter, compared to the consensus estimate of $6.15 billion. Lear had a return on equity of 13.69% and a net margin of 2.25%.The firm's revenue for the quarter was up 3.0% compared to the same quarter last year. During the same period in the prior year, the firm posted $3.06 earnings per share. As a group, equities research analysts forecast that Lear will post 14.81 EPS for the current fiscal year.

Insiders Place Their Bets

In other news, CEO Raymond E. Scott sold 50,000 shares of the stock in a transaction dated Wednesday, June 24th. The stock was sold at an average price of $135.37, for a total transaction of $6,768,500.00. Following the transaction, the chief executive officer owned 49,789 shares of the company's stock, valued at approximately $6,739,936.93. This represents a 50.11% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, CFO Jason M. Cardew sold 5,000 shares of Lear stock in a transaction dated Tuesday, June 2nd. The stock was sold at an average price of $147.50, for a total value of $737,500.00. Following the completion of the transaction, the chief financial officer owned 13,241 shares in the company, valued at $1,953,047.50. The trade was a 27.41% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders sold 62,026 shares of company stock worth $8,498,248. Insiders own 1.02% of the company's stock.

Institutional Investors Weigh In On Lear

Large investors have recently modified their holdings of the stock. Altshuler Shaham Ltd bought a new position in Lear in the 4th quarter valued at $25,000. WealthCollab LLC bought a new stake in Lear in the second quarter valued at approximately $28,000. Los Angeles Capital Management LLC bought a new stake in shares of Lear in the 4th quarter valued at $30,000. Allworth Financial LP raised its position in shares of Lear by 62.6% during the third quarter. Allworth Financial LP now owns 309 shares of the auto parts company's stock worth $31,000 after purchasing an additional 119 shares during the period. Finally, Global Retirement Partners LLC raised its holdings in Lear by 942.3% during the 4th quarter. Global Retirement Partners LLC now owns 271 shares of the auto parts company's stock worth $31,000 after buying an additional 245 shares during the period. 97.04% of the stock is currently owned by institutional investors.

Key Stories Impacting Lear

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

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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