Lear (NYSE:LEA) Shares Cross Above 200 Day Moving Average - Should You Sell?

Key Points

• Lear shares crossed above its 200-day moving average (200‑day MA $115.16), trading as high as $125.78 and last at $124.75 on Wednesday, up about 5.7% intraday.
• Fundamentals are supportive: Lear beat estimates with Q4 EPS $3.41 vs. $2.67 expected and revenue $5.99B vs. $5.78B, and it pays a $0.77 quarterly dividend (annualized $3.08, ~2.5% yield).
• Analyst and ownership context: the consensus rating is a Hold with a $137.58 average price target, while insiders recently sold ~25,264 shares and institutional investors hold roughly 97% of the stock.

Lear Corporation (NYSE:LEA - Get Free Report)'s stock price crossed above its 200-day moving average during trading on Wednesday . The stock has a 200-day moving average of $115.16 and traded as high as $125.78. Lear shares last traded at $124.7490, with a volume of 454,138 shares.

Lear News Roundup

Here are the key news stories impacting Lear this week:

• Positive Sentiment: Lear’s most recent quarter showed an earnings and revenue beat (Feb. 4), with EPS of $3.41 vs. $2.67 expected and revenue above estimates — a concrete fundamental reason investors may be re-rating the stock higher. Lear Stock Page
• Neutral Sentiment: Telecom/broadband policy momentum (H.R.8145 expanding distance learning and telemedicine) could lift demand for connectivity and related supply chains, but it’s indirect for auto supplier Lear — more relevant to AT&T/Verizon and cloud providers. H.R.8145 Bill
• Neutral Sentiment: Broader market/tech focus on AI (Kevin O’Leary comments) can influence capital flows into industrials and auto-tech names over time as automakers and suppliers invest in software/AI features — a longer-term thematic tailwind rather than an immediate catalyst for Lear. O'Leary AI Comments
• Neutral Sentiment: Macro/market headlines (e.g., central bank gold buying, stablecoin regulatory proposals, AI security stories) can move risk sentiment intraday and explain part of the stock’s move, but they’re not specific to Lear’s operations or near-term earnings. Gold Structural Floor

Wall Street Analyst Weigh In

LEA has been the subject of several research analyst reports. Barclays set a $140.00 price target on shares of Lear in a research report on Thursday, February 5th. Wells Fargo & Company reduced their price target on shares of Lear from $131.00 to $126.00 and set an "equal weight" rating for the company in a research report on Tuesday, March 31st. Argus upgraded shares of Lear to a "strong-buy" rating in a research report on Monday, February 9th. Bank of America initiated coverage on shares of Lear in a research report on Wednesday, March 4th. They issued a "neutral" rating for the company. Finally, Morgan Stanley upped their price target on shares of Lear from $112.00 to $123.00 and gave the company an "equal weight" rating in a research report on Thursday, February 5th. One equities research analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating and ten have issued a Hold rating to the stock. According to data from MarketBeat, the company has a consensus rating of "Hold" and a consensus price target of $137.58.

Lear Trading Up 5.7%

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 has a market cap of $6.33 billion, a PE ratio of 15.31, a P/E/G ratio of 0.85 and a beta of 1.24. The business's 50-day simple moving average is $125.23 and its 200-day simple moving average is $115.16.

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

Lear Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Wednesday, March 25th. Stockholders of record on Thursday, March 5th were issued a dividend of $0.77 per share. The ex-dividend date was Thursday, March 5th. This represents a $3.08 dividend on an annualized basis and a dividend yield of 2.5%. Lear's dividend payout ratio (DPR) is currently 37.79%.

Insider Activity

In related news, SVP Harry Albert Kemp sold 7,000 shares of Lear stock in a transaction on Thursday, February 19th. The shares were sold at an average price of $136.31, for a total value of $954,170.00. Following the transaction, the senior vice president owned 17,423 shares in the company, valued at $2,374,929.13. This trade represents a 28.66% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, CFO Jason M. Cardew sold 10,000 shares of the firm's stock in a transaction on Thursday, February 19th. The stock was sold at an average price of $134.51, for a total transaction of $1,345,100.00. Following the completion of the sale, the chief financial officer owned 22,741 shares in the company, valued at $3,058,891.91. This represents a 30.54% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders have sold 25,264 shares of company stock worth $3,400,687. Insiders own 0.91% of the company's stock.

Institutional Trading of Lear

Hedge funds and other institutional investors have recently bought and sold shares of the stock. Altshuler Shaham Ltd acquired a new stake in shares of Lear during the 4th quarter valued at about $25,000. WealthCollab LLC acquired a new stake in shares of Lear during the 2nd quarter valued at about $28,000. Los Angeles Capital Management LLC acquired a new stake in shares of Lear during the 4th quarter valued at about $30,000. Allworth Financial LP boosted its position in shares of Lear by 62.6% during the 3rd quarter. Allworth Financial LP now owns 309 shares of the auto parts company's stock valued at $31,000 after acquiring an additional 119 shares in the last quarter. Finally, Global Retirement Partners LLC boosted its position in shares of Lear by 942.3% during the 4th quarter. Global Retirement Partners LLC now owns 271 shares of the auto parts company's stock valued at $31,000 after acquiring an additional 245 shares in the last quarter. 97.04% of the stock is currently owned by institutional investors and hedge funds.

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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