Lear (NYSE:LEA) Cut to “Hold” at Wall Street Zen

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

Several other research analysts also recently commented on LEA. Deutsche Bank Aktiengesellschaft set a $131.00 price objective on Lear in a research note on Monday, August 3rd. Wells Fargo & Company boosted their price objective on Lear from $137.00 to $138.00 and gave the company an “equal weight” rating in a research note on Monday, August 3rd. UBS Group reduced their target price on shares of Lear from $141.00 to $132.00 and set a “neutral” rating for the company in a report on Wednesday, October 7th. JPMorgan Chase & Co. restated a “neutral” rating and set a $150.00 target price (down from $175.00) on shares of Lear in a research note on Tuesday, September 15th. Finally, Weiss Ratings downgraded shares of Lear from a “buy (b-)” rating to a “hold (c+)” rating in a report on Wednesday, September 9th. One analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating and twelve have issued a Hold rating to the stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Hold” and a consensus target price of $143.58.

Lear Stock Performance

NYSE:LEA opened at $116.60 on Friday. Lear has a one year low of $99.00 and a one year high of $150.33. The business has a fifty day moving average price of $122.58 and a 200-day moving average price of $128.48.

Lear (NYSE:LEA) last announced its earnings results on Friday, July 31st. The auto parts company reported $4.28 EPS for the quarter, topping analysts’ consensus estimates of $3.98 by $0.30. The company had revenue of $6.21 billion during the quarter, compared to the consensus estimate of $6.15 billion. Lear’s revenue for the quarter was up 3.0% compared to the same quarter last year. During the same period in the prior year, the business posted $3.06 earnings per share. Equities research analysts anticipate that Lear will post 14.88 EPS for the current year.

Lear declared that its Board of Directors has approved a stock buyback plan on Thursday, September 24th that allows the company to buy back $1.50 billion in shares. This repurchase authorization allows the auto parts company to purchase up to 25.7% of its shares through open market purchases. Stock repurchase plans are typically a sign that the company’s board believes its stock is undervalued.

Lear Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Tuesday, September 22nd. Stockholders of record on Wednesday, September 2nd were given a $0.77 dividend. This represents a $3.08 annualized dividend and a dividend yield of 2.6%. The ex-dividend date was Wednesday, September 2nd.

Insider Buying and Selling at Lear

In related news, Director Conrad L. Mallett, Jr. sold 1,646 shares of the stock in a transaction dated Thursday, August 6th. The stock was sold at an average price of $121.35, for a total transaction of $199,742.10. Following the completion of the sale, the director owned 37 shares in the company, valued at approximately $4,489.95. This trade represents a 97.80% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. 1.02% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in the business. IFP Advisors Inc grew its holdings in Lear by 14.3% during the 2nd quarter. IFP Advisors Inc now owns 624 shares of the auto parts company’s stock valued at $84,000 after buying an additional 78 shares in the last quarter. Altshuler Shaham Ltd lifted its holdings in shares of 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 buying an additional 81 shares in the last quarter. Versant Capital Management Inc boosted its position in shares of Lear by 3.8% during the second quarter. Versant Capital Management Inc now owns 2,260 shares of the auto parts company’s stock worth $303,000 after acquiring an additional 82 shares during the last quarter. Waterfront Wealth Inc. boosted its position in shares of Lear by 0.5% during the first quarter. Waterfront Wealth Inc. now owns 17,404 shares of the auto parts company’s stock worth $2,107,000 after acquiring an additional 89 shares during the last quarter. Finally, Pinnacle Wealth Planning Services Inc. boosted its position in shares of Lear by 9.6% during the third 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 owned by hedge funds and other institutional investors.

Key Headlines Impacting Lear

Here are the key news stories impacting Lear this week:

• Neutral Sentiment: No direct catalyst for Lear Corporation: The article about Lear Capital surpassing $5 billion in lifetime precious-metals transactions does not involve Lear Corporation, its automotive-seating and electrical systems businesses, or LEA shares. Lear Capital Surpasses $5 Billion in Lifetime Precious Metals Transactions
• Neutral Sentiment: Limited indirect technology sentiment: Commentary on strong artificial-intelligence demand and the possibility that many announced data-center projects will not be built could influence broader technology and infrastructure sentiment, but it provides no specific information about Lear’s customers, production outlook, or earnings. Kevin O’Leary Warns AI Demand Is Insatiable
• Neutral Sentiment: Other articles are unrelated: The remaining stories cover structured-note ETFs, politics, personal finance, cryptocurrency, Anthropic’s potential IPO, and another company’s employee incentives. They are unlikely to have a meaningful near-term effect on LEA.

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.