Key Points
- Lear CEO Raymond Scott sold 50,000 shares on June 24 at an average price of $135.37, generating about $6.77 million and cutting his stake by roughly 50%.
- Despite the insider sale, Lear’s stock was up 1.6% and opened at $137.78, trading near its 50-day and 200-day moving averages.
- Lear reported solid quarterly results with EPS of $3.87, beating estimates, while revenue rose 4.7% year over year; the company also paid a quarterly dividend of $0.77 per share.
Lear Corporation (NYSE:LEA - Get Free Report) CEO Raymond Scott sold 50,000 shares of Lear stock in a transaction dated Wednesday, June 24th. The stock was sold at an average price of $135.37, for a total transaction of $6,768,500.00. Following the transaction, the chief executive officer owned 49,789 shares of the company's stock, valued at approximately $6,739,936.93. The trade was a 50.11% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link.
Lear Stock Up 1.6%
LEA stock opened at $137.78 on Friday. The company's 50 day simple moving average is $136.34 and its 200-day simple moving average is $127.28. The firm has a market capitalization of $6.90 billion, a PE ratio of 13.78, a P/E/G ratio of 0.69 and a beta of 1.23. Lear Corporation has a 12 month low of $91.67 and a 12 month high of $150.33. 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 (NYSE:LEA - Get Free Report) last issued its quarterly earnings data on Friday, May 1st. The auto parts company reported $3.87 earnings per share (EPS) for the quarter, topping the consensus estimate of $3.51 by $0.36. Lear had a return on equity of 13.69% and a net margin of 2.25%.The firm had revenue of $5.82 billion during the quarter, compared to the consensus estimate of $5.84 billion. During the same period in the previous year, the firm posted $3.12 EPS. The company's quarterly revenue was up 4.7% compared to the same quarter last year. Equities analysts expect that Lear Corporation will post 14.61 earnings per share for the current fiscal year.
Lear Dividend Announcement
The business also recently declared a quarterly dividend, which was paid on Tuesday, June 23rd. Stockholders of record on Wednesday, June 3rd were issued a $0.77 dividend. This represents a $3.08 dividend on an annualized basis and a dividend yield of 2.2%. The ex-dividend date of this dividend was Wednesday, June 3rd. Lear's payout ratio is 30.80%.
Key Stories Impacting Lear
Here are the key news stories impacting Lear this week:
- Positive Sentiment: Wells Fargo raised its price target on Lear to $137 from $133, signaling continued valuation support even while keeping an equal-weight rating. Wells Fargo lifts Lear price target
- Neutral Sentiment: Lear’s recent earnings report showed stronger-than-expected adjusted EPS of $3.87, with revenue up 4.7% year over year, reinforcing the view that the core business is still performing steadily.
- Negative Sentiment: CEO Raymond E. Scott sold 50,000 shares at an average price of $135.37, a transaction that reduced his stake by about 50%, which investors may read as a modest confidence signal against the stock. CEO stock sale filing
Hedge Funds Weigh In On Lear
A number of hedge funds have recently made changes to their positions in LEA. American Century Companies Inc. increased its stake in shares of Lear by 23.6% in the third quarter. American Century Companies Inc. now owns 1,569,341 shares of the auto parts company's stock worth $157,891,000 after buying an additional 299,841 shares during the last quarter. Life Cycle Investment Partners Ltd bought a new position in Lear during the 4th quarter valued at $22,539,000. Oldfield Partners LLP grew its holdings in Lear by 5.5% during the 4th quarter. Oldfield Partners LLP now owns 644,286 shares of the auto parts company's stock worth $73,835,000 after acquiring an additional 33,313 shares in the last quarter. Dynamic Technology Lab Private Ltd bought a new stake in shares of Lear in the 3rd quarter worth about $1,420,000. Finally, Impax Asset Management Group plc increased its position in shares of Lear by 33.1% in the 4th quarter. Impax Asset Management Group plc now owns 17,264 shares of the auto parts company's stock worth $1,978,000 after purchasing an additional 4,293 shares during the last quarter. Institutional investors and hedge funds own 97.04% of the company's stock.
Wall Street Analyst Weigh In
A number of equities research analysts have recently commented on the stock. Deutsche Bank Aktiengesellschaft set a $133.00 price target on shares of Lear in a report on Monday, May 4th. Weiss Ratings raised shares of Lear from a "hold (c+)" rating to a "buy (b-)" rating in a research note on Tuesday. JPMorgan Chase & Co. increased their price target on Lear from $152.00 to $153.00 and gave the stock an "overweight" rating in a research note on Thursday, May 14th. TD Cowen raised Lear from a "hold" rating to a "buy" rating and lifted their price objective for the company from $138.00 to $165.00 in a research report on Tuesday, May 26th. Finally, UBS Group reduced their target price on Lear from $145.00 to $135.00 and set a "neutral" rating on the stock in a research report on Tuesday, April 14th. One analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating and nine have assigned a Hold rating to the company. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Hold" and a consensus price target of $143.38.
Check Out Our Latest Stock Analysis on LEA
About Lear
(
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.
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