Lear Corp. (LEA) Downgraded by Zacks Investment Research
Lear Corp. (NYSE:LEA) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a report released on Wednesday.
According to Zacks, “Lear Corporation is a leading global supplier of automotive seating systems, electrical distribution systems and electronics. The seating segment consists of the manufacture, assembly and supply of vehicle seating requirements. The Company produces seat systems for automobiles and light trucks that are fully assembled and ready for installation. The electrical and electronic segment consists of the manufacture, assembly and supply of electrical and electronic systems and components for the vehicle. The Company is able to provide its customers with engineering and design solutions and manufactured systems, modules and components that optimally integrate the electrical distribution system of wiring, terminals and connectors, junction boxes and electronic modules within the overall architecture of the vehicle. Lear Corporation is headquartered in Southfield, Michigan. “
Several other equities research analysts have also issued reports on the stock. Bank of America Corp. lowered shares of Lear Corp. from a “neutral” rating to an “underperform” rating and dropped their price objective for the stock from $145.00 to $115.00 in a research report on Wednesday, November 9th. RBC Capital Markets reaffirmed a “sector perform” rating and set a $127.00 price target (up from $121.00) on shares of Lear Corp. in a report on Thursday, October 27th. Royal Bank Of Canada raised their price objective on shares of Lear Corp. from $121.00 to $127.00 and gave the stock a “sector perform” rating in a report on Thursday, October 27th. Robert W. Baird assumed coverage on shares of Lear Corp. in a report on Monday, October 10th. They set a “neutral” rating and a $133.00 price objective for the company. Finally, Goldman Sachs Group Inc. lowered shares of Lear Corp. from a “neutral” rating to a “sell” rating and decreased their price objective for the stock from $116.00 to $107.00 in a report on Thursday, October 6th. Two investment analysts have rated the stock with a sell rating, nine have assigned a hold rating and three have assigned a buy rating to the company’s stock. The stock currently has a consensus rating of “Hold” and a consensus target price of $126.75.
Shares of Lear Corp. (NYSE:LEA) opened at 128.06 on Wednesday. Lear Corp. has a 52-week low of $93.54 and a 52-week high of $130.59. The stock has a market capitalization of $8.99 billion, a PE ratio of 9.73 and a beta of 1.29. The stock’s 50 day moving average is $121.05 and its 200 day moving average is $115.83.
Lear Corp. (NYSE:LEA) last posted its quarterly earnings results on Wednesday, October 26th. The company reported $3.19 earnings per share for the quarter, topping the Zacks’ consensus estimate of $2.96 by $0.23. The company had revenue of $4.50 billion for the quarter, compared to the consensus estimate of $4.45 billion. Lear Corp. had a net margin of 5.26% and a return on equity of 31.86%. Lear Corp.’s revenue was up 4.5% on a year-over-year basis. During the same quarter last year, the firm posted $2.56 earnings per share. Equities research analysts expect that Lear Corp. will post $13.69 earnings per share for the current fiscal year.
The company also recently disclosed a quarterly dividend, which will be paid on Friday, December 30th. Investors of record on Friday, December 9th will be given a $0.30 dividend. The ex-dividend date is Wednesday, December 7th. This represents a $1.20 annualized dividend and a yield of 0.94%. Lear Corp.’s dividend payout ratio is presently 9.12%.
In related news, Director Jonathan F. Foster sold 1,500 shares of Lear Corp. stock in a transaction dated Wednesday, September 28th. The shares were sold at an average price of $119.24, for a total value of $178,860.00. Following the sale, the director now directly owns 4,025 shares in the company, valued at approximately $479,941. The sale was disclosed in a legal filing with the SEC, which is available at the SEC website. 0.33% of the stock is currently owned by corporate insiders.
A number of hedge funds have recently modified their holdings of the stock. Royal Bank of Canada increased its stake in shares of Lear Corp. by 30.6% in the second quarter. Royal Bank of Canada now owns 362,176 shares of the company’s stock valued at $36,854,000 after buying an additional 84,929 shares in the last quarter. Bank of Montreal Can bought a new stake in Lear Corp. during the second quarter worth approximately $222,829,000. Sumitomo Mitsui Trust Holdings Inc. increased its stake in Lear Corp. by 2.1% in the second quarter. Sumitomo Mitsui Trust Holdings Inc. now owns 260,879 shares of the company’s stock worth $26,547,000 after buying an additional 5,287 shares during the period. British Columbia Investment Management Corp increased its stake in Lear Corp. by 35.0% in the second quarter. British Columbia Investment Management Corp now owns 58,113 shares of the company’s stock worth $5,914,000 after buying an additional 15,069 shares during the period. Finally, PGGM Investments increased its stake in Lear Corp. by 35.3% in the second quarter. PGGM Investments now owns 346,152 shares of the company’s stock worth $35,224,000 after buying an additional 90,279 shares during the period. Hedge funds and other institutional investors own 97.85% of the company’s stock.
About Lear Corp.
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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