Key Points
- Lear CFO Jason Cardew sold 5,000 shares for $588,750, reducing his direct holdings by 37.76% to 8,241 shares. The filing did not state a reason for the sale.
- Lear’s latest quarter beat EPS expectations, reporting $3.71 per share versus the $3.32 consensus, but revenue of $5.77 billion fell short of estimates; sales rose 1.6% year over year.
- Analysts’ consensus rating is Hold, with an average price target of $143.25. Lear has also authorized a $1.5 billion share repurchase program.
Lear Corporation (NYSE:LEA - Get Free Report) CFO Jason Cardew sold 5,000 shares of the company's stock in a transaction dated Tuesday, November 3rd. The shares were sold at an average price of $117.75, for a total transaction of $588,750.00. Following the sale, the chief financial officer directly owned 8,241 shares of the company's stock, valued at $970,377.75. The trade was a 37.76% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website.
Lear Price Performance
Shares of NYSE:LEA opened at $118.58 on Thursday. The company has a quick ratio of 0.92, a current ratio of 1.18 and a debt-to-equity ratio of 0.40. The stock has a market capitalization of $5.71 billion, a PE ratio of 10.36, a price-to-earnings-growth ratio of 0.66 and a beta of 1.28. The firm's 50 day moving average price is $121.83 and its 200-day moving average price is $128.28. Lear Corporation has a twelve month low of $99.00 and a twelve month high of $150.33.
Lear (NYSE:LEA - Get Free Report) last announced its earnings results on Friday, October 30th. The auto parts company reported $3.71 earnings per share (EPS) for the quarter, beating the consensus estimate of $3.32 by $0.39. Lear had a net margin of 2.46% and a return on equity of 14.92%. The company had revenue of $5.77 billion during the quarter, compared to analyst estimates of $5.81 billion. During the same period in the previous year, the business posted $2.79 earnings per share. The firm's quarterly revenue was up 1.6% compared to the same quarter last year. Equities research analysts expect that Lear Corporation will post 15.01 EPS for the current year.
Lear declared that its Board of Directors has authorized a stock repurchase program 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 repurchase up to 25.7% of its stock through open market purchases. Share repurchase programs are generally an indication that the company's board of directors believes its stock is undervalued.
Lear Dividend Announcement
The company also recently disclosed a quarterly dividend, which was paid on Tuesday, September 22nd. Stockholders of record on Wednesday, September 2nd were paid a $0.77 dividend. The ex-dividend date of this dividend was Wednesday, September 2nd. This represents a $3.08 dividend on an annualized basis and a dividend yield of 2.6%. Lear's dividend payout ratio is 26.90%.
Wall Street Analyst Weigh In
Several equities research analysts have recently issued reports on the stock. Weiss Ratings cut shares of Lear from a "buy (b-)" rating to a "hold (c+)" rating in a research report on Wednesday, September 9th. Wall Street Zen downgraded shares of Lear from a "buy" rating to a "hold" rating in a report on Sunday, October 25th. Royal Bank Of Canada dropped their target price on shares of Lear from $139.00 to $135.00 and set a "sector perform" rating for the company in a research report on Monday. JPMorgan Chase & Co. cut shares of Lear from an "overweight" rating to a "neutral" rating and cut their target price for the company from $175.00 to $150.00 in a research note on Tuesday, September 15th. Finally, Wells Fargo & Company lifted their price target 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. One analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating and twelve have issued a Hold rating to the company. According to data from MarketBeat.com, the company presently has a consensus rating of "Hold" and an average target price of $143.25.
View Our Latest Analysis on Lear
Lear News Roundup
Here are the key news stories impacting Lear this week:
Institutional Investors Weigh In On Lear
A number of hedge funds and other institutional investors have recently added to or reduced their stakes in LEA. IFP Advisors Inc boosted its stake in Lear by 14.3% during the second quarter. IFP Advisors Inc now owns 624 shares of the auto parts company's stock worth $84,000 after buying an additional 78 shares during the period. Altshuler Shaham Ltd increased its position in Lear by 36.5% during the first quarter. Altshuler Shaham Ltd now owns 303 shares of the auto parts company's stock valued at $37,000 after acquiring an additional 81 shares during the last quarter. Versant Capital Management Inc raised its stake in shares of Lear by 3.8% in the second quarter. Versant Capital Management Inc now owns 2,260 shares of the auto parts company's stock valued at $303,000 after acquiring an additional 82 shares during the period. Waterfront Wealth Inc. raised its stake in shares of Lear by 0.5% in the first quarter. Waterfront Wealth Inc. now owns 17,404 shares of the auto parts company's stock valued at $2,107,000 after acquiring an additional 89 shares during the period. Finally, Pinnacle Wealth Planning Services Inc. lifted its holdings in shares of Lear by 9.6% in the 3rd quarter. Pinnacle Wealth Planning Services Inc. now owns 1,247 shares of the auto parts company's stock worth $147,000 after acquiring an additional 109 shares during the last quarter. 97.04% of the stock is currently owned by hedge funds and other institutional investors.
About Lear
(
Get Free Report)
Lear Corporation is a global automotive technology company that designs and manufactures products used in passenger vehicles and commercial vehicles. Its operations are 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 support vehicle power management and connectivity.
The company serves automotive manufacturers and their vehicle programs in major markets across North America, Europe, Asia and other regions.
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