Goldman Sachs Group Inc. Lowers Lear Corp. (LEA) to Sell
Goldman Sachs Group Inc. lowered shares of Lear Corp. (NYSE:LEA) from a neutral rating to a sell rating in a report released on Thursday morning. Goldman Sachs Group Inc. currently has $107.00 target price on the stock, down from their previous target price of $116.00.
“As a result, we believe shares could see a pullback on just achieving the top end of management guidance,” Tamberrino wrote in a note.Further, the analyst said the company could face stiff competition from Johnson Controls Automotive on future business awards, pricing and margins. The rival is re-investing and increasing its bidding activity.Related Link: A Weaker Outlook For Gentherm Drives Argus To Downgrade”While Lear (17 percent) is a top player within the Auto seating business — with core capabilities above and beyond its competitors, the company is behind Johnson Controls’ Automotive segment (27 percent) in market share,,” Goldman Sachs Group Inc.’s analyst commented.
A number of other analysts also recently issued reports on LEA. Citigroup Inc. lifted their target price on Lear Corp. from $145.00 to $153.00 and gave the company a buy rating in a research report on Tuesday, August 2nd. Barclays PLC set a $127.00 price target on Lear Corp. and gave the stock a hold rating in a research report on Monday, August 1st. Zacks Investment Research downgraded Lear Corp. from a strong-buy rating to a hold rating in a research report on Wednesday, June 29th. JPMorgan Chase & Co. boosted their price target on Lear Corp. from $129.00 to $130.00 and gave the stock a neutral rating in a research report on Friday, July 29th. Finally, Bank of America Corp. downgraded Lear Corp. from a buy rating to a neutral rating in a research report on Tuesday, June 21st. One investment analyst has rated the stock with a sell rating, eight have assigned a hold rating and four have issued a buy rating to the company’s stock. The company currently has a consensus rating of Hold and an average price target of $128.00.
Lear Corp. (NYSE:LEA) last released its earnings results on Thursday, July 28th. The company reported $3.66 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $3.32 by $0.34. The business had revenue of $4.70 billion for the quarter, compared to the consensus estimate of $4.86 billion. Lear Corp. had a return on equity of 31.69% and a net margin of 5.14%. Lear Corp.’s quarterly revenue was up 1.9% on a year-over-year basis. During the same quarter in the previous year, the business earned $2.82 earnings per share.
The business also recently declared a quarterly dividend, which was paid on Thursday, September 22nd. Investors of record on Thursday, September 1st were paid a $0.30 dividend. This represents a $1.20 annualized dividend and a dividend yield of 1.00%. The ex-dividend date of this dividend was Tuesday, August 30th. Lear Corp.’s dividend payout ratio (DPR) is currently 9.58%.
In related news, Director Jonathan F. Foster sold 1,500 shares of the business’s stock in a transaction that occurred on Wednesday, September 28th. The stock was sold at an average price of $119.24, for a total value of $178,860.00. Following the completion of the sale, the director now directly owns 4,025 shares in the company, valued at $479,941. The sale was disclosed in a filing with the SEC, which is available at this link. 0.33% of the stock is owned by corporate insiders.
Several large investors have recently modified their holdings of the stock. Advisory Services Network LLC boosted its stake in shares of Lear Corp. by 164.8% in the third quarter. Advisory Services Network LLC now owns 850 shares of the company’s stock valued at $103,000 after buying an additional 529 shares during the period. Checchi Capital Advisers LLC boosted its stake in shares of Lear Corp. by 2.6% in the second quarter. Checchi Capital Advisers LLC now owns 1,023 shares of the company’s stock valued at $104,000 after buying an additional 26 shares during the period. Societe Generale bought a new stake in shares of Lear Corp. during the second quarter valued at about $121,000. Assetmark Inc. boosted its stake in shares of Lear Corp. by 8,535.3% in the second quarter. Assetmark Inc. now owns 1,468 shares of the company’s stock valued at $150,000 after buying an additional 1,451 shares during the period. Finally, Pacer Advisors Inc. boosted its stake in shares of Lear Corp. by 9.4% in the second quarter. Pacer Advisors Inc. now owns 1,509 shares of the company’s stock valued at $154,000 after buying an additional 130 shares during the period. Institutional investors and hedge funds own 94.70% of the company’s stock.
Lear Corp. Company Profile
Lear Corporation (Lear) is a supplier to the global automotive industry. The Company is engaged in supplying seating, electrical distribution systems and electronic modules, as well as related sub-systems, components and software, to automotive manufacturers. The Company operates through two segments: seating and electrical.
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