The Goldman Sachs Group Cuts Lear (NYSE:LEA) Price Target to $124.00

Lear (NYSE:LEA) had its price target lowered by The Goldman Sachs Group from $140.00 to $124.00 in a research note published on Tuesday, Marketbeat reports. The brokerage currently has a neutral rating on the auto parts company’s stock.

A number of other research analysts also recently commented on LEA. Royal Bank Of Canada raised their target price on shares of Lear from $138.00 to $143.00 and gave the company a “sector perform” rating in a research report on Monday, July 13th. BNP Paribas Exane downgraded shares of Lear from an “outperform” rating to a “neutral” rating in a research note on Monday, August 3rd. Weiss Ratings cut Lear from a “buy (b-)” rating to a “hold (c+)” rating in a research report on Wednesday, September 9th. Deutsche Bank Aktiengesellschaft set a $131.00 price target on Lear in a report on Monday, August 3rd. Finally, Wells Fargo & Company upped their price objective on Lear from $137.00 to $138.00 and gave the stock an “equal weight” rating in a research note on Monday, August 3rd. One equities research 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’s stock. Based on data from MarketBeat, Lear presently has an average rating of “Hold” and an average target price of $144.75.

Lear Price Performance

Shares of LEA stock opened at $118.35 on Tuesday. Lear has a twelve month low of $96.04 and a twelve month high of $150.33. The stock has a market capitalization of $5.84 billion, a price-to-earnings ratio of 11.03, a P/E/G ratio of 0.73 and a beta of 1.29. The stock has a fifty day simple moving average of $124.15 and a two-hundred day simple moving average of $130.56. The company has a current ratio of 1.31, a quick ratio of 1.04 and a debt-to-equity ratio of 0.51.

Lear (NYSE:LEA) last announced its quarterly earnings results on Friday, July 31st. The auto parts company reported $4.28 EPS for the quarter, beating the consensus estimate of $3.98 by $0.30. The firm had revenue of $6.21 billion for the quarter, compared to analyst estimates of $6.15 billion. Lear had a return on equity of 14.18% and a net margin of 2.35%.The business’s revenue for the quarter was up 3.0% on a year-over-year basis. During the same quarter last year, the firm posted $3.06 earnings per share. On average, analysts predict that Lear will post 14.86 EPS for the current fiscal year.

Lear declared that its Board of Directors has initiated a share repurchase program on Thursday, September 24th that allows the company to buyback $1.50 billion in outstanding shares. This buyback authorization allows the auto parts company to repurchase up to 25.7% of its shares through open market purchases. Shares buyback programs are typically an indication that the company’s management believes its stock is undervalued.

Lear Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Tuesday, September 22nd. Stockholders of record on Wednesday, September 2nd were given a dividend of $0.77 per share. 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 presently 28.70%.

Insider Activity at Lear

In other news, Director Conrad L. Mallett, Jr. sold 1,646 shares of the firm’s stock in a transaction 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 of the company’s stock, valued at $4,489.95. This trade represents a 97.80% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Corporate insiders own 1.02% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in the business. Altshuler Shaham Ltd boosted its holdings in Lear by 36.5% in the first quarter. Altshuler Shaham Ltd now owns 303 shares of the auto parts company’s stock worth $37,000 after acquiring an additional 81 shares in the last quarter. Rockefeller Capital Management L.P. increased its holdings in shares of Lear by 57.4% during the fourth quarter. Rockefeller Capital Management L.P. now owns 576 shares of the auto parts company’s stock valued at $66,000 after acquiring an additional 210 shares in the last quarter. IFP Advisors Inc increased its holdings in shares of Lear by 14.3% during the second quarter. IFP Advisors Inc now owns 624 shares of the auto parts company’s stock valued at $84,000 after acquiring an additional 78 shares in the last quarter. Parkside Financial Bank & Trust raised its position in shares of Lear by 15.6% in the 2nd quarter. Parkside Financial Bank & Trust now owns 844 shares of the auto parts company’s stock valued at $113,000 after purchasing an additional 114 shares during the last quarter. Finally, NFSG Corp purchased a new position in shares of Lear in the 1st quarter valued at approximately $125,000. 97.04% of the stock is owned by institutional investors and hedge funds.

Key Stories Impacting Lear

Here are the key news stories impacting Lear this week:

• Positive Sentiment: Lear expanded its share-repurchase authorization, signaling that management sees value in the stock and may increase capital returned to shareholders. Buybacks can support earnings per share by reducing the number of shares outstanding. Lear expanded buyback authorization: JPMorgan cut Lear Corporation stock target
• Positive Sentiment: Lear has scheduled its October results, giving investors a near-term catalyst. Coverage also notes that 16 analysts rate the shares Outperform, suggesting relatively constructive sell-side sentiment ahead of the report. Lear schedules October results as 16 analysts rate Lear stock Outperform
• Neutral Sentiment: Lear’s most recent reported quarter was stronger than expected, with earnings and revenue exceeding consensus estimates and revenue increasing year over year. Investors will now focus on whether the upcoming results confirm that momentum and provide updated guidance.
• Negative Sentiment: JPMorgan lowered its price target for Lear, creating a valuation overhang despite the larger buyback. A reduced target can weigh on the shares because it signals less upside in the near term and may reflect concerns about automotive production, margins, or industry demand. Lear expanded buyback authorization: JPMorgan cut Lear Corporation stock target

Lear Company Profile

Lear Corporation (NYSE: LEA) is a global automotive technology supplier that designs and manufactures products used by vehicle manufacturers worldwide. The company’s principal business areas are seating systems and e-systems, which support the functionality, comfort, safety and connectivity of modern vehicles.

Lear’s seating business provides complete seating systems and related components, including seat structures, mechanisms, foam, trim, covers and comfort technologies. Its e-systems business develops electrical distribution systems, connection systems, electronic components and software-enabled technologies that help manage power, data and connectivity within vehicles.

Founded in 1917 and headquartered in Southfield, Michigan, Lear serves automotive manufacturers through operations and facilities across major vehicle-producing regions, including North America, Europe and Asia.