Lear (NYSE:LEA) Rating Lowered to Hold at Wall Street Zen

Key Points

• Wall Street Zen downgraded Lear to “Hold” from “Buy.” The broader analyst consensus is also “Hold,” with an average price target of $145.23 versus the stock’s reported $128.38 price.
• Lear exceeded quarterly expectations, reporting $4.28 in EPS versus the $3.98 consensus and $6.21 billion in revenue, up 3% year over year.
• Insiders sold 61,336 shares worth approximately $8.37 million over the past 90 days, while institutional investors own a substantial 97.04% of Lear’s outstanding shares.

Lear (NYSE:LEA - Get Free Report) was downgraded by research analysts at Wall Street Zen from a "buy" rating to a "hold" rating in a research report issued to clients and investors on Saturday.

Other equities analysts also recently issued reports about the stock. Morgan Stanley set a $130.00 price target on shares of Lear in a report on Monday, May 4th. Deutsche Bank Aktiengesellschaft set a $131.00 price objective on shares of Lear in a report on Monday, August 3rd. JPMorgan Chase & Co. lifted their target price on shares of Lear from $153.00 to $159.00 and gave the company an "overweight" rating in a research note on Friday, July 10th. Weiss Ratings downgraded Lear from a "buy (b-)" rating to a "hold (c+)" rating in a report on Tuesday, August 11th. Finally, Barclays increased their price target on Lear from $150.00 to $155.00 and gave the stock an "equal weight" rating in a research report on Thursday, July 9th. One equities research analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating and eleven have given a Hold rating to the stock. Based on data from MarketBeat.com, the stock presently has an average rating of "Hold" and an average target price of $145.23.

Lear Price Performance

Shares of LEA stock opened at $128.38 on Friday. The stock's fifty day simple moving average is $134.01 and its 200 day simple moving average is $131.35. Lear has a one year low of $96.04 and a one year high of $150.33. The firm has a market cap of $6.33 billion, a price-to-earnings ratio of 11.96, a P/E/G ratio of 0.60 and a beta of 1.25. The company has a debt-to-equity ratio of 0.51, a current ratio of 1.31 and a quick ratio of 1.04.

Lear (NYSE:LEA - Get Free Report) last issued its quarterly earnings data on Friday, July 31st. The auto parts company reported $4.28 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $3.98 by $0.30. Lear had a return on equity of 14.18% and a net margin of 2.35%.The company had revenue of $6.21 billion during the quarter, compared to analysts' expectations of $6.15 billion. During the same period last year, the business earned $3.06 earnings per share. The business's revenue was up 3.0% on a year-over-year basis. On average, analysts expect that Lear will post 14.86 earnings per share for the current fiscal year.

Insider Activity

In related news, Director Conrad L. Mallett, Jr. sold 1,646 shares of Lear stock in a transaction dated Thursday, August 6th. The stock was sold at an average price of $121.35, for a total value of $199,742.10. Following the completion of the sale, the director directly owned 37 shares in the company, valued at $4,489.95. This trade represents a 97.80% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CFO Jason M. Cardew sold 5,000 shares of the business's 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 sale, the chief financial officer directly owned 13,241 shares of the company's stock, valued at $1,953,047.50. This represents a 27.41% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last ninety days, insiders sold 61,336 shares of company stock valued at $8,367,727. Company insiders own 1.02% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds have recently modified their holdings of the business. Syon Capital LLC raised its stake in shares of Lear by 13.0% during the second quarter. Syon Capital LLC now owns 2,467 shares of the auto parts company's stock worth $331,000 after buying an additional 284 shares during the last quarter. Nykredit A S bought a new position in Lear in the second quarter valued at approximately $208,000. F&V Capital Management LLC grew its holdings in Lear by 1.6% during the 2nd quarter. F&V Capital Management LLC now owns 87,170 shares of the auto parts company's stock worth $11,686,000 after acquiring an additional 1,390 shares during the period. BTG Pactual Asset Management US LLC acquired a new stake in Lear during the 2nd quarter worth $343,000. Finally, Public Employees Retirement System of Ohio bought a new stake in shares of Lear during the 2nd quarter valued at $3,988,000. Institutional investors own 97.04% of the company's stock.

Key Lear News

Here are the key news stories impacting Lear this week:

• Negative Sentiment: Detroit’s Ethics Board is reportedly investigating the city’s top lawyer over a side job at Lear. The inquiry could create governance, compliance and reputational concerns, although the article does not indicate financial misconduct or any operational impact on Lear. Detroit Ethics Board to investigate top city lawyer for side job at Lear
• Neutral Sentiment: The other listed articles concern Cleveland-Cliffs, entertainment, education, cryptocurrency, personal finance and unrelated topics, and do not provide material information about Lear Corporation.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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