Key Points
- Lear CFO Jason Cardew sold 5,000 shares on June 2 at an average price of $147.50, reducing his stake by 27.41%. The sale was disclosed in an SEC filing and totaled about $737,500.
- The stock was trading lower by about 1.5% around the time of the report, opening at $145.11 after recently approaching its 52-week high of $150.33. Despite the pullback, Lear remains above its 50-day and 200-day moving averages.
- Lear’s recent fundamentals and shareholder returns remain solid, with the company beating quarterly EPS estimates and posting 4.7% year-over-year revenue growth. It also declared a quarterly dividend of $0.77 per share, equal to a 2.1% annualized yield.
Lear Corporation (NYSE:LEA - Get Free Report) CFO Jason Cardew sold 4,500 shares of the firm's stock in a transaction dated Monday, June 1st. The stock was sold at an average price of $141.14, for a total value of $635,130.00. Following the completion of the transaction, the chief financial officer owned 18,241 shares in the company, valued at approximately $2,574,534.74. This trade represents a 19.79% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link.
Lear Stock Performance
Lear stock opened at $145.11 on Thursday. The stock's 50-day moving average is $129.91 and its 200-day moving average is $123.32. The company has a market cap of $7.27 billion, a price-to-earnings ratio of 14.51, a price-to-earnings-growth ratio of 0.75 and a beta of 1.23. The company has a debt-to-equity ratio of 0.51, a current ratio of 1.33 and a quick ratio of 1.05. Lear Corporation has a 12 month low of $86.14 and a 12 month high of $150.33.
Lear (NYSE:LEA - Get Free Report) last released its quarterly earnings data on Friday, May 1st. The auto parts company reported $3.87 EPS for the quarter, topping analysts' consensus estimates of $3.51 by $0.36. The company had revenue of $5.82 billion for the quarter, compared to the consensus estimate of $5.84 billion. Lear had a return on equity of 13.69% and a net margin of 2.25%.The company's quarterly revenue was up 4.7% compared to the same quarter last year. During the same period last year, the business posted $3.12 EPS. Equities analysts anticipate that Lear Corporation will post 14.61 earnings per share for the current year.
Lear Dividend Announcement
The business also recently announced a quarterly dividend, which will be paid on Tuesday, June 23rd. Investors of record on Wednesday, June 3rd will be issued a dividend of $0.77 per share. This represents a $3.08 annualized dividend and a dividend yield of 2.1%. The ex-dividend date is Wednesday, June 3rd. Lear's dividend payout ratio (DPR) is presently 30.80%.
Lear News Summary
Here are the key news stories impacting Lear this week:
- Positive Sentiment: Investor sentiment toward auto suppliers remains constructive after Lear’s last earnings report, where the company beat EPS estimates and posted year-over-year revenue growth, reinforcing the view that fundamentals are improving. This supports the stock’s recent rise and helps explain why shares are trading near their 52-week high.
- Neutral Sentiment: Two separate filings showed CFO Jason M. Cardew sold shares on June 1 and June 2. While insider sales can draw attention, the transactions were relatively small versus his remaining stake and do not necessarily signal a change in Lear’s outlook. Article: Lear Corporation CFO Jason M. Cardew sold shares
- Neutral Sentiment: No new company-specific operational update, guidance revision, or major contract announcement appeared in the latest 24-36 hours, so the stock’s move is likely being driven more by broader market positioning and the afterglow from prior earnings strength than by fresh news.
- Negative Sentiment: Recent insider selling from the CFO may create some short-term caution among investors, especially after a strong run in the shares, as some may interpret it as limited confidence in near-term upside.
Institutional Investors Weigh In On Lear
Hedge funds and other institutional investors have recently bought and sold shares of the business. Altshuler Shaham Ltd purchased a new stake in Lear during the 4th quarter worth approximately $25,000. WealthCollab LLC purchased a new stake in Lear during the 2nd quarter worth approximately $28,000. Los Angeles Capital Management LLC purchased a new stake in Lear during the 4th quarter worth approximately $30,000. Allworth Financial LP increased 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 worth $31,000 after purchasing an additional 119 shares during the last quarter. Finally, Global Retirement Partners LLC increased 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 during the last quarter. 97.04% of the stock is currently owned by hedge funds and other institutional investors.
Analyst Ratings Changes
LEA has been the topic of several analyst reports. Benchmark initiated coverage on Lear in a report on Thursday, February 19th. They set a "buy" rating and a $170.00 target price on the stock. The Goldman Sachs Group raised their target price on Lear from $115.00 to $131.00 and gave the company a "neutral" rating in a report on Monday, May 4th. Morgan Stanley set a $130.00 target price on Lear in a report on Monday, May 4th. Bank of America initiated coverage on Lear in a report on Wednesday, March 4th. They set a "neutral" rating on the stock. Finally, JPMorgan Chase & Co. raised their target price on Lear from $152.00 to $153.00 and gave the company an "overweight" rating in a report on Thursday, May 14th. One research analyst has rated the stock with a Strong Buy rating, four have given a Buy rating and ten have issued a Hold rating to the company. According to MarketBeat, Lear currently has a consensus rating of "Hold" and an average price target of $143.08.
View Our Latest Research Report on Lear
Lear Company Profile
(
Get Free Report)
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.
Further Reading
This instant news alert was generated by narrative science technology and financial data from InsiderTrades.com in order to provide readers with the fastest and most accurate reporting. Please send any questions or comments about this story to [email protected].
