Lear (NYSE:LEA) Downgraded by Wall Street Zen to “Hold”

Wall Street Zen downgraded shares of Lear (NYSE:LEA) from a buy rating to a hold rating in a research note published on Sunday,Wall Street Zen reports.

Several other research analysts have also weighed in on LEA. Barclays reduced their price objective on shares of Lear from $155.00 to $145.00 and set an “equal weight” rating on the stock in a research note on Friday, October 9th. Weiss Ratings downgraded shares of Lear from a “buy (b-)” rating to a “hold (c+)” rating in a research note on Wednesday, September 9th. UBS Group cut their target price on shares of Lear from $141.00 to $132.00 and set a “neutral” rating on the stock in a report on Wednesday, October 7th. JPMorgan Chase & Co. reiterated a “neutral” rating and issued a $150.00 target price (down from $175.00) on shares of Lear in a report on Tuesday, September 15th. Finally, The Goldman Sachs Group reduced their price target on shares of Lear from $140.00 to $124.00 and set a “buy” rating on the stock in a research report on Tuesday, October 6th. One equities research analyst has rated the stock with a Strong Buy rating, three have given a Buy rating and twelve have given a Hold rating to the company’s stock. According to MarketBeat.com, the stock currently has an average rating of “Hold” and a consensus price target of $143.58.

Lear Trading Up 0.0%

NYSE:LEA opened at $116.70 on Friday. Lear has a 1-year low of $99.00 and a 1-year high of $150.33. The business’s 50-day moving average price is $123.12 and its two-hundred day moving average price is $130.51. The company has a current ratio of 1.31, a quick ratio of 1.04 and a debt-to-equity ratio of 0.51. The firm has a market capitalization of $5.76 billion, a price-to-earnings ratio of 10.88, a PEG ratio of 0.66 and a beta of 1.29.

Lear (NYSE:LEA) last issued its earnings results on Friday, July 31st. The auto parts company reported $4.28 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $3.98 by $0.30. The firm had revenue of $6.21 billion for the quarter, compared to analysts’ expectations of $6.15 billion. Lear had a return on equity of 14.18% and a net margin of 2.35%. The company’s revenue was up 3.0% compared to the same quarter last year. During the same quarter last year, the business earned $3.06 earnings per share. On average, equities analysts expect that Lear will post 14.88 earnings per share for the current year.

Lear Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Tuesday, September 22nd. Stockholders of record on Wednesday, September 2nd were issued a $0.77 dividend. This represents a $3.08 dividend on an annualized basis and a dividend yield of 2.6%. The ex-dividend date was Wednesday, September 2nd. Lear’s payout ratio is 28.70%.

Lear announced that its Board of Directors has approved a share repurchase plan on Thursday, September 24th that permits the company to buy back $1.50 billion in shares. This repurchase authorization permits the auto parts company to buy up to 25.7% of its shares through open market purchases. Stock repurchase plans are usually an indication that the company’s management believes its stock is undervalued.

Insider Buying and Selling at Lear

In related news, Director Conrad L. 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 sale, the director owned 37 shares of the company’s stock, valued at approximately $4,489.95. This trade represents a 97.80% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. 1.02% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Lear

A number of large investors have recently bought and sold shares of LEA. Dimensional Fund Advisors LP raised its holdings in shares of Lear by 3.8% in the first quarter. Dimensional Fund Advisors LP now owns 2,943,480 shares of the auto parts company’s stock valued at $356,380,000 after purchasing an additional 107,678 shares during the last quarter. Bank of New York Mellon Corp acquired a new position in Lear during the second quarter worth $65,397,000. Sei Investments Co. grew its position in Lear by 28.8% in the first quarter. Sei Investments Co. now owns 176,084 shares of the auto parts company’s stock valued at $21,320,000 after purchasing an additional 39,422 shares in the last quarter. Quantinno Capital Management LP grew its position in Lear by 14.4% in the first quarter. Quantinno Capital Management LP now owns 151,156 shares of the auto parts company’s stock valued at $18,302,000 after purchasing an additional 18,990 shares in the last quarter. Finally, Diamond Hill Capital Management LLC Investment Advisor bought a new position in Lear in the second quarter valued at $17,423,000. Institutional investors and hedge funds own 97.04% of the company’s stock.

Lear News Roundup

Here are the key news stories impacting Lear this week:

• Positive Sentiment: Analysts expect Lear to report year-over-year earnings growth when it releases results on Friday, providing a potential catalyst for the stock. Lear Reports Next Week: Wall Street Expects Earnings Growth
• Positive Sentiment: Lear is being highlighted as a long-term value stock, which could attract investors given its relatively low valuation and the company’s prior earnings performance, including a recent quarterly earnings beat. Why Lear Is a Top Value Stock for the Long-Term
• Positive Sentiment: The average analyst price target is $143.58, substantially above Lear’s recent trading level, indicating considerable potential upside if earnings and industry conditions meet expectations. Lear Corporation Stock Has Average Price Target of $143.58
• Neutral Sentiment: Lear has appointed Fedele as chief financial officer. The leadership change may be relevant to investors, but the announcement provides no immediate change to earnings guidance or operating outlook. Lear Corporation Appoints Fedele as CFO
• Negative Sentiment: Zacks reports that Lear does not currently show the combination of indicators typically associated with a likely earnings beat. That caution may be weighing on the stock ahead of results, particularly while shares remain below their 50-day and 200-day moving averages. Lear Reports Next Week: Wall Street Expects Earnings Growth

About Lear

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.