Key Points
- Director sold nearly all Lear holdings: Conrad Mallett, Jr. sold 1,646 shares for approximately $199,742, reducing his ownership by 97.8% to just 37 shares.
- Quarterly results beat expectations: Lear reported $4.28 in EPS versus the $3.98 consensus and revenue of $6.21 billion, up 3% year over year.
- Shares appear relatively inexpensive but sentiment is cautious: Lear trades at about 11 times earnings and pays a 2.5% dividend yield, while its stock remains below its 50-day and 200-day moving averages. Analysts give the shares a consensus “Hold” rating with a $145.23 target price.
Lear Corporation (NYSE:LEA - Get Free Report) Director Conrad Mallett, Jr. sold 1,646 shares of Lear stock in a transaction that occurred on Thursday, August 6th. The stock was sold at an average price of $121.35, for a total value of $199,742.10. Following the completion of the sale, the director owned 37 shares in the company, valued at approximately $4,489.95. This represents a 97.80% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this link.
Lear Price Performance
Shares of Lear stock opened at $122.80 on Friday. 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 company has a market cap of $6.06 billion, a PE ratio of 11.44, a P/E/G ratio of 0.57 and a beta of 1.25. The business has a 50 day moving average of $138.05 and a 200 day moving average of $131.10. Lear Corporation has a 52 week low of $95.27 and a 52 week high of $150.33.
Lear (NYSE:LEA - Get Free Report) last released its quarterly earnings results on Friday, July 31st. The auto parts company reported $4.28 earnings per share for the quarter, beating the consensus estimate of $3.98 by $0.30. The business had revenue of $6.21 billion for the quarter, compared to analysts' expectations of $6.15 billion. Lear had a net margin of 2.35% and a return on equity of 14.18%. The firm's revenue for the quarter was up 3.0% compared to the same quarter last year. During the same quarter in the previous year, the business posted $3.06 earnings per share. As a group, equities research analysts forecast that Lear Corporation will post 14.84 earnings per share for the current year.
Lear Announces Dividend
The business also recently disclosed a quarterly dividend, which was paid on Tuesday, June 23rd. Shareholders of record on Wednesday, June 3rd were issued a $0.77 dividend. The ex-dividend date was Wednesday, June 3rd. This represents a $3.08 annualized dividend and a yield of 2.5%. Lear's dividend payout ratio (DPR) is 28.70%.
Hedge Funds Weigh In On Lear
Large investors have recently added to or reduced their stakes in the company. Foster & Motley Inc. purchased a new stake in shares of Lear in the second quarter worth $1,062,000. Diamond Hill Capital Management LLC Investment Advisor purchased a new stake in Lear in the 2nd quarter worth $17,423,000. Bank of New York Mellon Corp bought a new stake in Lear during the second quarter valued at about $65,397,000. GAMMA Investing LLC raised its stake in Lear by 7.2% during the 2nd quarter. GAMMA Investing LLC now owns 2,328 shares of the auto parts company's stock valued at $312,000 after purchasing an additional 157 shares during the period. Finally, Versant Capital Management Inc lifted its holdings in Lear by 3.8% in the 2nd quarter. Versant Capital Management Inc now owns 2,260 shares of the auto parts company's stock worth $303,000 after purchasing an additional 82 shares in the last quarter. 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: Q2 earnings beat expectations: Lear reported adjusted earnings per share of $4.28 versus the $3.98 consensus estimate, while revenue reached $6.21 billion, ahead of the $6.15 billion forecast and up 3% year over year. Results were supported by margin expansion in the E-Systems segment. LEA Q2 Earnings Beat Estimates on E-Systems Margin Expansion
- Positive Sentiment: Buyback target raised: Lear increased its 2026 share-repurchase target to at least $350 million. The larger buyback could support earnings per share and signals management’s confidence in cash generation and the stock’s valuation.
- Neutral Sentiment: Valuation remains relatively low: Lear trades at roughly 11 times earnings, with analysts forecasting approximately $14.84 in full-year EPS. However, shares remain below their 50-day and 200-day moving averages, indicating that investors are still cautious about the auto-supply-chain and broader vehicle-production outlook.
- Negative Sentiment: Director sold nearly all holdings: Director Conrad L. Mallett Jr. sold 1,646 shares for approximately $199,742, leaving him with only 37 shares. Although insider sales can reflect personal financial considerations, the 97.8% reduction in his position may create a modest negative signal for investors. SEC insider ownership filing
Analysts Set New Price Targets
A number of research analysts have recently commented on the company. Wall Street Zen cut Lear from a "strong-buy" rating to a "buy" rating in a research note on Saturday, August 1st. Wells Fargo & Company raised their price objective on Lear from $137.00 to $138.00 and gave the company an "equal weight" rating in a research report on Monday, August 3rd. Citigroup raised their target price on shares of Lear from $177.00 to $179.00 and gave the company a "buy" rating in a research note on Monday, May 4th. The Goldman Sachs Group restated a "neutral" rating and set a $140.00 target price on shares of Lear in a research note on Saturday, August 1st. Finally, 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. One analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating and ten have given a Hold rating to the company's stock. According to MarketBeat.com, Lear presently has an average rating of "Hold" and a consensus target price of $145.23.
Get Our Latest Stock Analysis on LEA
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.
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