Lear (NYSE:LEA) Stock Passes Above Two Hundred Day Moving Average - Time to Sell?

Key Points

• Lear stock moved above its 200-day moving average on Friday, trading as high as $144.09 and last changing hands around $141.61. The move comes as the stock shows recent technical strength.
• Recent commentary has been bullish, with Zacks calling Lear a “fast-paced momentum at a bargain” stock and other outlets highlighting the company’s growth potential and improving investor sentiment.
• Analysts currently have an overall Hold rating on Lear, with an average price target of $144.62. The company also beat earnings expectations in its latest quarter, while insiders have been net sellers in recent months.

Lear Corporation (NYSE:LEA - Get Free Report) crossed above its 200-day moving average during trading on Friday . The stock has a 200-day moving average of $129.48 and traded as high as $144.09. Lear shares last traded at $141.6110, with a volume of 527,228 shares changing hands.

Key Lear News

Here are the key news stories impacting Lear this week:

• Positive Sentiment: Zacks highlighted Lear as a “fast-paced momentum at a bargain” stock, suggesting the company has recent price strength while still looking attractively valued. Article Title
• Positive Sentiment: Seeking Alpha published a bullish take, “Lear Is In High Gear,” which adds to the view that investors are warming to the auto supplier’s fundamentals and momentum. Article Title
• Positive Sentiment: Another recent article framed Lear as a top growth stock for the long term, reinforcing a constructive investor outlook on LEA. Article Title
• Neutral Sentiment: Several other items in the feed were unrelated to Lear Corporation or its business and are unlikely to affect the stock.

Wall Street Analysts Forecast Growth

Several analysts have recently weighed in on the stock. Wells Fargo & Company raised their price objective on shares of Lear from $133.00 to $137.00 and gave the stock an "equal weight" rating in a report on Thursday, June 25th. Citigroup increased their price target on Lear from $177.00 to $179.00 and gave the company a "buy" rating in a research note on Monday, May 4th. Deutsche Bank Aktiengesellschaft set a $133.00 target price on shares of Lear in a research note on Monday, May 4th. The Goldman Sachs Group lifted their target price on Lear from $115.00 to $131.00 and gave the stock a "neutral" rating in a report on Monday, May 4th. Finally, Barclays lifted their price target on shares of Lear from $150.00 to $155.00 and gave the company an "equal weight" rating in a research note on Thursday, July 9th. One investment analyst has rated the stock with a Strong Buy rating, five have given a Buy rating and nine have issued a Hold rating to the stock. Based on data from MarketBeat.com, the stock currently has an average rating of "Hold" and an average price target of $144.62.

Lear Trading Down 1.4%

The stock has a market cap of $7.09 billion, a price-to-earnings ratio of 14.16, a PEG ratio of 0.73 and a beta of 1.25. The company has a quick ratio of 1.05, a current ratio of 1.33 and a debt-to-equity ratio of 0.51. The business's 50 day simple moving average is $138.51 and its 200 day simple moving average is $129.48.

Lear (NYSE:LEA - Get Free Report) last issued its earnings results on Friday, May 1st. The auto parts company reported $3.87 earnings per share (EPS) for the quarter, beating the consensus estimate of $3.51 by $0.36. Lear had a net margin of 2.25% and a return on equity of 13.69%. The business had revenue of $5.82 billion during the quarter, compared to the consensus estimate of $5.84 billion. During the same period last year, the business posted $3.12 EPS. Lear's revenue was up 4.7% on a year-over-year basis. On average, research analysts expect that Lear Corporation will post 14.81 EPS for the current fiscal year.

Lear Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Tuesday, June 23rd. Shareholders of record on Wednesday, June 3rd were issued a $0.77 dividend. The ex-dividend date of this dividend was Wednesday, June 3rd. This represents a $3.08 dividend on an annualized basis and a yield of 2.2%. Lear's payout ratio is currently 30.80%.

Insider Buying and Selling

In related news, SVP Nicholas Jon Roelli sold 2,336 shares of the stock in a transaction on Friday, May 22nd. The stock was sold at an average price of $141.38, for a total value of $330,263.68. Following the completion of the sale, the senior vice president directly owned 2,339 shares in the company, valued at $330,687.82. This represents a 49.97% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, Director Conrad L. Mallett, Jr. sold 190 shares of the firm's stock in a transaction on Wednesday, June 10th. The stock was sold at an average price of $141.34, for a total value of $26,854.60. Following the transaction, the director directly owned 1,683 shares of the company's stock, valued at approximately $237,875.22. This represents a 10.14% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders have sold 62,026 shares of company stock valued at $8,498,248. 1.02% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Lear

A number of large investors have recently bought and sold shares of the stock. Altshuler Shaham Ltd acquired a new position in shares of Lear during the fourth quarter worth approximately $25,000. WealthCollab LLC purchased a new position in shares of Lear during the 2nd quarter valued at $28,000. Los Angeles Capital Management LLC purchased a new position in shares of Lear in the fourth quarter worth about $30,000. Allworth Financial LP raised its holdings in 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 during the period. Finally, Global Retirement Partners LLC lifted 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 purchasing 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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