UBS Group Cuts Lear (NYSE:LEA) Price Target to $135.00

Key Points

• UBS Group lowered its price target on Lear from $145 to $135 and kept a "neutral" rating, implying about a 9.05% upside from the stock's current price.
• Lear beat quarterly expectations, reporting $3.41 EPS vs. $2.67 consensus and $5.99 billion in revenue vs. $5.78 billion, with revenue up 4.8% year-over-year.
• Analysts show a consensus "Hold" rating with an average target of $136.25 (one Strong Buy, three Buy, ten Hold), while insiders have sold roughly 25,264 shares (~$3.4M) in the past 90 days.

Lear (NYSE:LEA - Get Free Report) had its price target lowered by investment analysts at UBS Group from $145.00 to $135.00 in a research note issued on Tuesday,Benzinga reports. The brokerage currently has a "neutral" rating on the auto parts company's stock. UBS Group's price objective suggests a potential upside of 9.05% from the stock's current price.

Other research analysts also recently issued research reports about the stock. Wall Street Zen upgraded shares of Lear from a "buy" rating to a "strong-buy" rating in a research report on Friday, January 23rd. Wells Fargo & Company decreased their price objective 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. Barclays set a $140.00 price objective on shares of Lear in a research report on Thursday, February 5th. Benchmark initiated coverage on shares of Lear in a research report on Thursday, February 19th. They issued a "buy" rating and a $170.00 price objective for the company. Finally, Weiss Ratings restated a "hold (c)" rating on shares of Lear in a research report on Thursday, January 22nd. One analyst has rated the stock with a Strong Buy rating, three have given a Buy rating and ten have given a Hold rating to the stock. According to MarketBeat, the company currently has an average rating of "Hold" and a consensus target price of $136.25.

Lear Price Performance

Shares of Lear stock traded up $0.58 during trading hours on Tuesday, reaching $123.80. The stock had a trading volume of 80,123 shares, compared to its average volume of 563,906. The stock's 50 day moving average is $125.57 and its 200 day moving average is $115.72. The firm has a market capitalization of $6.27 billion, a PE ratio of 15.18, a PEG ratio of 0.90 and a beta of 1.24. Lear has a twelve month low of $76.60 and a twelve month high of $142.84. The company has a current ratio of 1.35, a quick ratio of 1.05 and a debt-to-equity ratio of 0.52.

Lear (NYSE:LEA - Get Free Report) last issued its quarterly earnings data on Wednesday, February 4th. The auto parts company reported $3.41 earnings per share for the quarter, topping analysts' consensus estimates of $2.67 by $0.74. The business 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 posted $2.94 earnings per share. Equities analysts expect that Lear will post 12.89 earnings per share for the current fiscal year.

Insider Activity

In other news, SVP Alicia J. Davis sold 6,630 shares of the stock in a transaction that occurred on Thursday, February 19th. The shares were sold at an average price of $132.98, for a total value of $881,657.40. Following the completion of the sale, the senior vice president owned 9,972 shares of the company's stock, valued at $1,326,076.56. This represents a 39.93% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. Also, CFO Jason M. Cardew sold 10,000 shares of the stock in a transaction that occurred on Thursday, February 19th. The shares were 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 directly owned 22,741 shares of the company's stock, valued at approximately $3,058,891.91. This trade represents a 30.54% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders sold 25,264 shares of company stock worth $3,400,687. Corporate insiders own 0.91% of the company's stock.

Institutional Trading of Lear

Several hedge funds have recently made changes to their positions in LEA. Jones Financial Companies Lllp grew its stake in shares of Lear by 5,205.1% in the 1st quarter. Jones Financial Companies Lllp now owns 7,268 shares of the auto parts company's stock valued at $604,000 after buying an additional 7,131 shares during the period. United Services Automobile Association purchased a new position in shares of Lear during the 1st quarter worth approximately $267,000. Empowered Funds LLC purchased a new position in shares of Lear during the 1st quarter worth approximately $256,000. EverSource Wealth Advisors LLC boosted its position in shares of Lear by 37.1% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 968 shares of the auto parts company's stock worth $92,000 after purchasing an additional 262 shares during the period. Finally, Cerity Partners LLC boosted its position in shares of Lear by 9.5% during the 2nd quarter. Cerity Partners LLC now owns 4,296 shares of the auto parts company's stock worth $408,000 after purchasing an additional 372 shares during the period. Hedge funds and other institutional investors own 97.04% of the company's stock.

More Lear News

Here are the key news stories impacting Lear this week:

• Positive Sentiment: Zacks upgraded LEA to a Zacks Rank #2 (Buy), citing improved earnings prospects and upward estimate revisions — a near-term catalyst that can support the stock if analysts and investors follow through. All You Need to Know About Lear (LEA) Rating Upgrade to Buy
• Positive Sentiment: Zacks also flagged Lear as a fast-paced momentum name that still looks reasonably valued, reinforcing the bullish thesis tied to recent earnings strength and momentum screens. Fast-paced Momentum Stock Lear (LEA) Is Still Trading at a Bargain
• Positive Sentiment: A Zacks piece examining year-to-date performance shows Lear holding up well versus many auto/tire/truck suppliers, which supports the view that LEA can outperform if auto demand and content-per-vehicle trends continue. Is Lear (LEA) Stock Outpacing Its Auto-Tires-Trucks Peers This Year?
• Neutral Sentiment: Zacks and other screens are debating valuation vs. peers (e.g., LEA vs. ATMU) and whether investors are undervaluing Lear — useful framing for longer-term investors but not an immediate price trigger. Are Investors Undervaluing Lear (LEA) Right Now? LEA or ATMU: Which Is the Better Value Stock Right Now?
• Negative Sentiment: An analyst/compare piece argues Magna (MGA) is the smarter pick due to more diversified growth, margin expansion, and stronger exposure to ADAS and electrification — a narrative that can draw investor dollars away from Lear and weigh on its relative multiple. Magna vs. Lear: Which Auto Supplier Is the Smarter Bet Now?
• Neutral Sentiment: Note: a Seeking Alpha item reports TPG acquiring Learfield — this concerns Learfield (college-media business), not Lear Corporation (LEA), so it’s unlikely to affect LEA’s stock. TPG to acquire Learfield; terms not disclosed

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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