Lear Corp. (NYSE:LEA) was downgraded by stock analysts at Goldman Sachs Group Inc. from a “neutral” rating to a “sell” rating in a research note issued to investors on Thursday. They currently have a $107.00 target price on the stock, down from their prior target price of $116.00. Goldman Sachs Group Inc.’s price target points to a potential downside of 11.58% from the stock’s previous close.
The analysts wrote, “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,”
Other analysts have also recently issued research reports about the company. Zacks Investment Research raised Lear Corp. from a “hold” rating to a “buy” rating and set a $136.00 price objective on the stock in a report on Tuesday, October 4th. Citigroup Inc. increased their price objective on Lear Corp. from $145.00 to $153.00 and gave the stock a “buy” rating in a report on Tuesday, August 2nd. Barclays PLC set a $127.00 price objective on Lear Corp. and gave the stock a “hold” rating in a report on Monday, August 1st. Seaport Global Securities started coverage on Lear Corp. in a report on Tuesday, August 9th. They set a “neutral” rating on the stock. Finally, Bank of America Corp. cut Lear Corp. from a “buy” rating to a “neutral” rating in a report on Tuesday, June 21st. One investment analyst has rated the stock with a sell rating, seven have assigned a hold rating and four have assigned a buy rating to the company’s stock. The stock presently has an average rating of “Hold” and an average target price of $127.44.
Shares of Lear Corp. (NYSE:LEA) opened at 121.01 on Thursday. The firm has a market capitalization of $8.66 billion, a price-to-earnings ratio of 9.68 and a beta of 1.22. The stock’s 50 day moving average price is $117.57 and its 200-day moving average price is $113.35. Lear Corp. has a 52 week low of $93.54 and a 52 week high of $127.00.
Lear Corp. (NYSE:LEA) last issued its quarterly earnings data on Thursday, July 28th. The company reported $3.66 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $3.32 by $0.34. The business had revenue of $4.70 billion for the quarter, compared to analysts’ expectations of $4.86 billion. Lear Corp. had a return on equity of 31.69% and a net margin of 5.14%. The firm’s quarterly revenue was up 1.9% on a year-over-year basis. During the same quarter in the prior year, the firm posted $2.82 EPS. Equities analysts predict that Lear Corp. will post $13.27 earnings per share for the current year.
The company also recently disclosed a quarterly dividend, which was paid on Thursday, September 22nd. Stockholders of record on Thursday, September 1st were given a dividend of $0.30 per share. The ex-dividend date of this dividend was Tuesday, August 30th. This represents a $1.20 annualized dividend and a dividend yield of 0.99%. Lear Corp.’s dividend payout ratio (DPR) is presently 9.58%.
In other news, Director Jonathan F. Foster sold 1,500 shares of the stock in a transaction dated Wednesday, September 28th. The stock was sold at an average price of $119.24, for a total transaction of $178,860.00. Following the transaction, the director now directly owns 4,025 shares in the company, valued at approximately $479,941. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Insiders own 0.33% of the company’s stock.
Several institutional investors have recently made changes to their positions in LEA. Advisory Services Network LLC raised its position in 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 last quarter. First Mercantile Trust Co. bought a new position in Lear Corp. during the third quarter valued at about $312,000. Foundry Partners LLC raised its position in Lear Corp. by 9.3% in the third quarter. Foundry Partners LLC now owns 104,560 shares of the company’s stock valued at $12,675,000 after buying an additional 8,875 shares during the last quarter. Lau Associates LLC raised its position in Lear Corp. by 4.9% in the third quarter. Lau Associates LLC now owns 8,623 shares of the company’s stock valued at $1,045,000 after buying an additional 400 shares during the last quarter. Finally, Evercore Wealth Management LLC raised its position in Lear Corp. by 54.3% in the second quarter. Evercore Wealth Management LLC now owns 1,554 shares of the company’s stock valued at $158,000 after buying an additional 547 shares during the last quarter. Hedge funds and other institutional investors own 94.70% 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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