Lear (NYSE:LEA) Stock Price Expected to Rise, The Goldman Sachs Group Analyst Says

Key Points

• Goldman Sachs raised its price target on Lear from $115 to $131 while maintaining a "neutral" rating, implying only about a 1.54% upside from the current share price; the Street consensus remains a "Hold" with a $138.38 target and mixed analyst views (Citigroup at $179 "Buy").
• Lear beat quarterly EPS estimates, reporting $3.87 vs. $3.51 expected and revenue of $5.82 billion (roughly in line), with a 52-week range of $82.88–$142.84 and a PE of 12.9, indicating solid profitability metrics despite modest top-line beats.
• Insiders have been net sellers recently, offloading about 25,264 shares valued at $3.4 million over the past 90 days, while institutional ownership remains high at roughly 97%.

Lear (NYSE:LEA - Get Free Report) had its price target upped by analysts at The Goldman Sachs Group from $115.00 to $131.00 in a report released on Monday,Benzinga reports. The firm currently has a "neutral" rating on the auto parts company's stock. The Goldman Sachs Group's price objective suggests a potential upside of 1.54% from the stock's current price.

Several other research analysts have also recently weighed in on the stock. Royal Bank Of Canada began coverage on shares of Lear in a report on Thursday, March 12th. They issued a "sector perform" rating and a $135.00 price target on the stock. TD Cowen reaffirmed a "hold" rating on shares of Lear in a report on Monday. Citigroup reaffirmed a "buy" rating and issued a $179.00 price target (up from $177.00) on shares of Lear in a report on Monday. Barclays set a $140.00 price target on shares of Lear in a report on Thursday, February 5th. Finally, Wells Fargo & Company set a $133.00 price target on shares of Lear in a report on Monday. One equities research analyst has rated the stock with a Strong Buy rating, three have given a Buy rating and eleven have assigned a Hold rating to the stock. According to data from MarketBeat, the stock currently has a consensus rating of "Hold" and a consensus target price of $138.38.

Lear Stock Performance

LEA stock traded down $3.39 during midday trading on Monday, reaching $129.02. 374,691 shares of the company's stock traded hands, compared to its average volume of 569,778. The company has a 50-day moving average price of $122.88 and a two-hundred day moving average price of $118.00. The company has a debt-to-equity ratio of 0.51, a quick ratio of 1.05 and a current ratio of 1.33. Lear has a 52 week low of $82.88 and a 52 week high of $142.84. The firm has a market capitalization of $6.53 billion, a PE ratio of 12.90, a price-to-earnings-growth ratio of 0.84 and a beta of 1.21.

Lear (NYSE:LEA - Get Free Report) last released its quarterly earnings results on Friday, May 1st. The auto parts company reported $3.87 earnings per share for the quarter, topping the consensus estimate of $3.51 by $0.36. The firm had revenue of $5.82 billion for the quarter, compared to analysts' expectations of $5.84 billion. Lear had a net margin of 2.25% and a return on equity of 13.69%. The business's quarterly revenue was up 4.7% on a year-over-year basis. During the same quarter in the prior year, the firm posted $3.12 earnings per share. As a group, equities analysts anticipate that Lear will post 14.19 EPS for the current year.

Insider Activity at Lear

In related news, VP Marianne Vidershain sold 1,590 shares of the company's stock in a transaction on Tuesday, February 24th. The shares were sold at an average price of $135.00, for a total value of $214,650.00. Following the completion of the transaction, the vice president directly owned 1,862 shares in the company, valued at approximately $251,370. The trade was a 46.06% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CFO Jason M. Cardew sold 10,000 shares of the company'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 transaction, the chief financial officer owned 22,741 shares of the company's stock, valued at $3,058,891.91. This trade represents a 30.54% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 25,264 shares of company stock valued at $3,400,687 over the last ninety days. 1.02% of the stock is currently owned by insiders.

Institutional Trading of Lear

Institutional investors have recently added to or reduced their stakes in the business. Altshuler Shaham Ltd purchased a new stake in Lear during the fourth quarter valued at about $25,000. WealthCollab LLC purchased a new stake in Lear during the second quarter valued at about $28,000. Los Angeles Capital Management LLC purchased a new stake in Lear during the fourth quarter valued at about $30,000. Allworth Financial LP boosted its position in Lear by 62.6% during the third quarter. Allworth Financial LP now owns 309 shares of the auto parts company's stock valued at $31,000 after buying an additional 119 shares during the period. Finally, Global Retirement Partners LLC boosted its position in Lear by 942.3% during the fourth quarter. Global Retirement Partners LLC now owns 271 shares of the auto parts company's stock valued at $31,000 after buying an additional 245 shares during the period. 97.04% of the stock is currently owned by hedge funds and other institutional investors.

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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