Lear Corporation (NYSE:LEA) Stock Now Rated “Hold” by Sell-Side Brokerages

Shares of Lear Corporation (NYSE:LEA) have earned an average recommendation of “Hold” from the sixteen research firms that are presently covering the company, MarketBeat Ratings reports. Twelve analysts have rated the stock with a hold rating, three have issued a buy rating and one has issued a strong buy rating on the company. The average twelve-month target price among brokers that have updated their coverage on the stock in the last year is $146.33.

Several research firms have weighed in on LEA. Wall Street Zen downgraded Lear from a “buy” rating to a “hold” rating in a research report on Sunday, September 20th. Barclays upped their price target on shares of Lear from $150.00 to $155.00 and gave the company an “equal weight” rating in a research report on Thursday, July 9th. Wells Fargo & Company lifted their target price on shares of Lear from $137.00 to $138.00 and gave the company an “equal weight” rating in a report on Monday, August 3rd. Deutsche Bank Aktiengesellschaft set a $131.00 target price on shares of Lear in a report on Monday, August 3rd. Finally, Royal Bank Of Canada increased their price objective on shares of Lear from $138.00 to $143.00 and gave the company a “sector perform” rating in a research note on Monday, July 13th.

Lear Stock Down 1.8%

LEA stock opened at $120.46 on Tuesday. The company has a quick ratio of 1.04, a current ratio of 1.31 and a debt-to-equity ratio of 0.51. The firm has a 50 day moving average of $128.13 and a 200 day moving average of $130.32. The stock has a market capitalization of $5.94 billion, a PE ratio of 11.23, a price-to-earnings-growth ratio of 0.75 and a beta of 1.26. Lear has a 52 week low of $96.04 and a 52 week high of $150.33.

Lear (NYSE:LEA) last issued its quarterly earnings data on Friday, July 31st. The auto parts company reported $4.28 earnings per share for the quarter, topping analysts’ consensus estimates of $3.98 by $0.30. The business had revenue of $6.21 billion during the quarter, compared to the consensus estimate of $6.15 billion. Lear had a net margin of 2.35% and a return on equity of 14.18%. The company’s revenue was up 3.0% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $3.06 earnings per share. Sell-side analysts forecast that Lear will post 14.86 earnings per share for the current year.

Lear Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Tuesday, September 22nd. Shareholders of record on Wednesday, September 2nd were paid a dividend of $0.77 per share. The ex-dividend date of this dividend was Wednesday, September 2nd. This represents a $3.08 dividend on an annualized basis and a yield of 2.6%. Lear’s dividend payout ratio (DPR) is currently 28.70%.

Lear declared that its Board of Directors has authorized a share buyback plan on Thursday, September 24th that permits the company to repurchase $1.50 billion in outstanding shares. This repurchase authorization permits the auto parts company to reacquire up to 25.7% of its stock through open market purchases. Stock repurchase plans are typically a sign that the company’s management believes its shares are undervalued.

Key Headlines Impacting Lear

Here are the key news stories impacting Lear this week:

• Positive Sentiment: Lear authorized a stock-repurchase program, giving management flexibility to return capital to shareholders. Buybacks can support earnings per share and signal that the company views its shares as attractively valued. Lear Authorizes Stock Repurchase Program
• Neutral Sentiment: An analysis argues that Lear is repurchasing shares faster than it is generating growth. While reduced share count may boost per-share results, investors may remain cautious if buybacks substitute for stronger revenue and profit expansion. Lear: Buying Stock Faster Than It’s Buying Growth
• Negative Sentiment: Broader concerns about tariffs, elevated energy costs and persistent inflation remain relevant for Lear as a major automotive supplier. Higher costs and pressure on automakers’ production volumes could weigh on margins and demand, although the linked commentary is macroeconomic rather than specific to Lear. Kevin O’Leary Warns About Tariffs, Inflation and Energy Costs

Insider Transactions at Lear

In related news, Director Conrad L. Mallett, Jr. sold 1,646 shares of the company’s stock in a transaction on Thursday, August 6th. The shares were sold at an average price of $121.35, for a total transaction of $199,742.10. Following the completion of the sale, the director directly owned 37 shares of the company’s stock, valued at approximately $4,489.95. This represents a 97.80% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. 1.02% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Lear

Institutional investors and hedge funds have recently made changes to their positions in the company. Sequoia Financial Advisors LLC grew its position in Lear by 3.8% in the 2nd quarter. Sequoia Financial Advisors LLC now owns 10,021 shares of the auto parts company’s stock worth $1,343,000 after purchasing an additional 363 shares during the last quarter. Tidal Investments LLC grew its holdings in Lear by 48.7% during the second quarter. Tidal Investments LLC now owns 22,783 shares of the auto parts company’s stock worth $3,054,000 after acquiring an additional 7,461 shares during the period. WINTON GROUP Ltd bought a new position in shares of Lear during the 2nd quarter valued at about $214,000. Engineers Gate Manager LP lifted its stake in Lear by 145.6% during the second quarter. Engineers Gate Manager LP now owns 126,588 shares of the auto parts company’s stock valued at $16,970,000 after purchasing an additional 75,043 shares during the last quarter. Finally, Integrated Wealth Concepts LLC lifted its position in shares of Lear by 16.6% during the 2nd quarter. Integrated Wealth Concepts LLC now owns 3,396 shares of the auto parts company’s stock valued at $455,000 after acquiring an additional 484 shares during the last quarter. 97.04% of the stock is owned by institutional investors and hedge funds.

About Lear

Lear Corporation is a global automotive technology company that designs and manufactures systems and components used in passenger vehicles. Its business is organized primarily around two areas: seating and E-Systems. Lear supplies complete vehicle seating systems, including seats, structures, mechanisms, foam, covers and related components, as well as electrical distribution systems and other technologies that help manage power, data and connectivity within vehicles.

The company’s E-Systems offerings include low- and high-voltage wiring systems, connection systems, battery and power-management solutions, electronic control modules, displays and software-enabled technologies.