Short Interest in Lear Corporation (NYSE:LEA) Grows By 17.0%

Key Points

• Short interest in Lear rose 17.0% in April to 1,987,543 shares, about 4.0% of the float, with a short-interest ratio of roughly 4.1 days based on average daily volume.
• Analyst coverage is mixed and the stock carries an average rating of "Hold" with a consensus price target of $134.92, though some firms (Citigroup, Benchmark) maintain higher Buy targets up to $177 and $170.
• Lear recently beat quarterly estimates (EPS $3.41 vs. $2.67; revenue $5.99B), pays a $0.77 quarterly dividend (≈2.5% yield), and has seen insider selling in recent months.

Lear Corporation (NYSE:LEA - Get Free Report) was the recipient of a significant increase in short interest in April. As of April 15th, there was short interest totaling 1,987,543 shares, an increase of 17.0% from the March 31st total of 1,698,339 shares. Currently, 4.0% of the shares of the stock are short sold. Based on an average daily volume of 489,704 shares, the short-interest ratio is presently 4.1 days.

Analysts Set New Price Targets

LEA has been the topic of several recent analyst reports. Citigroup lifted their target price on Lear from $146.00 to $177.00 and gave the company a "buy" rating in a research note on Thursday, February 5th. Royal Bank Of Canada started coverage on Lear in a research note on Thursday, March 12th. They issued a "sector perform" rating and a $135.00 price target for the company. TD Cowen cut their price objective on shares of Lear from $133.00 to $132.00 and set a "hold" rating for the company in a report on Wednesday, April 15th. Bank of America initiated coverage on shares of Lear in a report on Wednesday, March 4th. They issued a "neutral" rating on the stock. Finally, Benchmark initiated coverage on shares of Lear in a research report on Thursday, February 19th. They set a "buy" rating and a $170.00 target price for the company. One investment analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating and eleven have given a Hold rating to the company. According to MarketBeat.com, the stock presently has an average rating of "Hold" and a consensus price target of $134.92.

Lear Price Performance

Shares of LEA stock opened at $123.76 on Thursday. The stock has a 50 day moving average price of $123.01 and a 200 day moving average price of $117.67. Lear has a 52-week low of $82.88 and a 52-week high of $142.84. The company has a debt-to-equity ratio of 0.52, a quick ratio of 1.05 and a current ratio of 1.35. The firm has a market capitalization of $6.27 billion, a P/E ratio of 15.18, a P/E/G ratio of 0.80 and a beta of 1.24.

Lear (NYSE:LEA - Get Free Report) last announced its quarterly earnings data on Wednesday, February 4th. The auto parts company reported $3.41 EPS for the quarter, beating the consensus estimate of $2.67 by $0.74. Lear had a return on equity of 13.40% and a net margin of 1.88%.The company had revenue of $5.99 billion for the quarter, compared to the consensus estimate of $5.78 billion. During the same quarter in the prior year, the company posted $2.94 EPS. Lear's quarterly revenue was up 4.8% on a year-over-year basis. As a group, sell-side analysts predict that Lear will post 14.19 earnings per share for the current year.

Lear Dividend Announcement

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

Insider Activity

In other Lear news, CFO Jason M. Cardew sold 10,000 shares of the stock in a transaction on Thursday, February 19th. The stock was sold at an average price of $134.51, for a total value of $1,345,100.00. Following the completion of the sale, the chief financial officer owned 22,741 shares in the company, valued at approximately $3,058,891.91. This represents a 30.54% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, VP Marianne Vidershain sold 1,590 shares of the firm's stock in a transaction dated Tuesday, February 24th. The shares were sold at an average price of $135.00, for a total value 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 ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 25,264 shares of company stock valued at $3,400,687 over the last 90 days. Company insiders own 1.02% of the company's stock.

Hedge Funds Weigh In On Lear

A number of hedge funds have recently added to or reduced their stakes in the stock. Altshuler Shaham Ltd purchased a new stake in shares of Lear in the fourth quarter valued at approximately $25,000. WealthCollab LLC purchased a new position in Lear during the 2nd quarter worth $28,000. Los Angeles Capital Management LLC bought a new stake in Lear during the 4th quarter valued at $30,000. Allworth Financial LP lifted its holdings in shares of Lear by 62.6% in the 3rd quarter. Allworth Financial LP now owns 309 shares of the auto parts company's stock worth $31,000 after buying an additional 119 shares during the period. Finally, Global Retirement Partners LLC lifted its holdings in shares of Lear by 942.3% in the 4th quarter. Global Retirement Partners LLC now owns 271 shares of the auto parts company's stock worth $31,000 after buying an additional 245 shares during the period. 97.04% of the stock is currently owned by institutional investors.

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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