Lear (NYSE:LEA) Price Target Lowered to $132.00 at TD Cowen

Key Points

• TD Cowen cut its price target on Lear to $132 from $133 and kept a "hold" rating, a level that implies roughly a 11% upside from the prior close; the street consensus remains a "Hold" with an average target of $136.17.
• Shares slid about 2.8% to $118.95 intraday, even as Lear reported a quarterly EPS beat ($3.41 vs. $2.67) and revenue above expectations ($5.99B), trading at a P/E near 14.6 and a market cap of ~$6.0B.
• Insiders have sold material stock recently (25,264 shares worth ~$3.4M in the last 90 days) while institutional ownership is very high (97.04%), including large buys by M&T Bank Corp and Norges Bank.

Lear (NYSE:LEA - Get Free Report) had its target price dropped by TD Cowen from $133.00 to $132.00 in a research report issued on Wednesday,Benzinga reports. The brokerage presently has a "hold" rating on the auto parts company's stock. TD Cowen's target price points to a potential upside of 10.98% from the company's previous close.

A number of other equities research analysts have also weighed in on LEA. Royal Bank Of Canada began coverage on shares of Lear in a report on Thursday, March 12th. They set a "sector perform" rating and a $135.00 price objective for the company. Bank of America began coverage on shares of Lear in a report on Wednesday, March 4th. They issued a "neutral" rating for the company. Morgan Stanley boosted their price target on shares of Lear from $112.00 to $123.00 and gave the company an "equal weight" rating in a report on Thursday, February 5th. The Goldman Sachs Group reduced their price target on shares of Lear from $129.00 to $115.00 and set a "neutral" rating for the company in a report on Tuesday. Finally, Weiss Ratings restated a "hold (c)" rating on shares of Lear in a report on Thursday, January 22nd. One investment analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating and ten have assigned a Hold rating to the company. According to MarketBeat, the company currently has an average rating of "Hold" and a consensus target price of $136.17.

Lear Trading Down 2.8%

Shares of LEA stock traded down $3.46 during trading hours on Wednesday, reaching $118.95. 91,289 shares of the stock were exchanged, compared to its average volume of 562,179. Lear has a 12-month low of $76.60 and a 12-month high of $142.84. The company has a current ratio of 1.35, a quick ratio of 1.05 and a debt-to-equity ratio of 0.52. The company's 50-day moving average price is $125.63 and its 200-day moving average price is $115.87. The firm has a market capitalization of $6.02 billion, a price-to-earnings ratio of 14.59, a price-to-earnings-growth ratio of 0.89 and a beta of 1.24.

Lear (NYSE:LEA - Get Free Report) last released its quarterly earnings results on Wednesday, February 4th. The auto parts company reported $3.41 EPS for the quarter, topping analysts' consensus estimates of $2.67 by $0.74. Lear had a net margin of 1.88% and a return on equity of 13.40%. The firm had revenue of $5.99 billion during the quarter, compared to analysts' expectations of $5.78 billion. During the same period in the previous year, the company earned $2.94 EPS. The firm's revenue for the quarter was up 4.8% compared to the same quarter last year. As a group, equities analysts anticipate that Lear will post 12.89 earnings per share for the current year.

Insider Activity

In related news, SVP Harry Albert Kemp sold 7,000 shares of the business's stock in a transaction that occurred on Thursday, February 19th. The shares were sold at an average price of $136.31, for a total transaction of $954,170.00. Following the completion of the transaction, the senior vice president owned 17,423 shares in the company, valued at $2,374,929.13. The trade was a 28.66% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, VP Marianne Vidershain sold 1,590 shares of the business's stock in a transaction that occurred on Tuesday, February 24th. The stock was sold at an average price of $135.00, for a total transaction of $214,650.00. Following the sale, the vice president directly owned 1,862 shares in the company, valued at approximately $251,370. This represents a 46.06% decrease in their position. The SEC filing for this sale provides additional information. In the last 90 days, insiders have sold 25,264 shares of company stock worth $3,400,687. Insiders own 1.02% of the company's stock.

Institutional Trading of Lear

Several large investors have recently bought and sold shares of LEA. M&T Bank Corp grew its position in 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 purchasing an additional 949,569 shares during the last quarter. Norges Bank purchased a new stake in Lear during the 4th quarter worth approximately $82,016,000. Balyasny Asset Management L.P. purchased a new stake in Lear during the 2nd quarter worth approximately $39,656,000. Caisse de depot et placement du Quebec purchased a new stake in Lear during the 3rd quarter worth approximately $40,984,000. Finally, American Century Companies Inc. grew its position in Lear by 23.6% during the 3rd quarter. American Century Companies Inc. now owns 1,569,341 shares of the auto parts company's stock worth $157,891,000 after purchasing an additional 299,841 shares during the last quarter. Hedge funds and other institutional investors own 97.04% of the company's stock.

Trending Headlines about Lear

Here are the key news stories impacting Lear this week:

• Positive Sentiment: Zacks upgraded LEA to a Zacks Rank #2 (Buy), citing improving earnings prospects and positioning the stock to benefit if Lear’s recent margin and electrification exposure trends continue. This upgrade supports upside from fundamental improvements and follows Lear’s recent quarterly beat. Read More.
• Neutral Sentiment: Industry comparisons are mixed — Zacks and other outlets are running side‑by‑side analyses (Lear vs. Magna and other auto suppliers) that highlight differences in diversification, ADAS/electrification exposure and margin trajectories; these reports help investors decide whether LEA’s valuation or peers offer better risk/reward. Read More. Read More.
• Neutral Sentiment: Company fundamentals remain supportive: Lear reported a solid quarter in February (EPS beat and revenue above expectations) and trades at a moderate P/E (~14.7). Technicals are mixed — price is below the 50‑day SMA but near the 200‑day — and today’s volume is light versus the 3‑month average, so moves may lack conviction. (Background data from latest filings and MarketBeat.)
• Negative Sentiment: UBS lowered its price target on LEA from $145 to $135 and moved to a "neutral" rating, reducing the firm’s expressed upside and likely contributing to the intraday weakness. Analyst PT cuts can trigger short‑term selling even when fundamentals remain stable. Read More.

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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