Lear Corporation (NYSE:LEA) Stock Has Consensus Price Target of $143.58 According to Brokerages

Lear Corporation (NYSE:LEA) has been given a consensus rating of “Hold” by the sixteen ratings firms that are covering the company, Marketbeat Ratings reports. Twelve research analysts have rated the stock with a hold recommendation, three have given a buy recommendation and one has assigned a strong buy recommendation to the company. The average 1-year target price among brokers that have covered the stock in the last year is $143.58.

Several research analysts recently weighed in on the company. JPMorgan Chase & Co. reiterated a “neutral” rating and set a $150.00 price target (down from $175.00) on shares of Lear in a research report on Tuesday, September 15th. Weiss Ratings lowered Lear from a “buy (b-)” rating to a “hold (c+)” rating in a research report on Wednesday, September 9th. Barclays dropped their price objective on shares of Lear from $155.00 to $145.00 and set an “equal weight” rating on the stock in a research note on Friday, October 9th. Wells Fargo & Company lifted their target price on shares of Lear from $137.00 to $138.00 and gave the company an “equal weight” rating in a report on Monday, August 3rd. Finally, Royal Bank Of Canada decreased their target price on shares of Lear from $143.00 to $139.00 and set a “sector perform” rating for the company in a research note on Monday, October 12th.

Lear Price Performance

NYSE:LEA opened at $116.70 on Friday. The business’s 50-day moving average is $123.12 and its 200 day moving average is $130.42. The company has a market capitalization of $5.76 billion, a P/E ratio of 10.88, a P/E/G ratio of 0.67 and a beta of 1.29. 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 has a 12 month low of $99.00 and a 12 month high of $150.33.

Lear (NYSE:LEA) last released its quarterly earnings data on Friday, July 31st. The auto parts company reported $4.28 earnings per share for the quarter, beating analysts’ consensus estimates of $3.98 by $0.30. Lear had a return on equity of 14.18% and a net margin of 2.35%. The business had revenue of $6.21 billion during the quarter, compared to analyst estimates of $6.15 billion. During the same quarter last year, the business posted $3.06 EPS. The company’s revenue was up 3.0% on a year-over-year basis. On average, equities research analysts forecast that Lear will post 14.88 earnings per share for the current fiscal year.

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

Lear Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Tuesday, September 22nd. Stockholders of record on Wednesday, September 2nd were paid a dividend of $0.77 per share. This represents a $3.08 annualized dividend and a dividend yield of 2.6%. The ex-dividend date of this dividend was Wednesday, September 2nd. Lear’s dividend payout ratio is presently 28.70%.

Insider Buying and Selling at Lear

In related news, Director Conrad L. Mallett, Jr. sold 1,646 shares of Lear stock in a transaction dated 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 transaction, the director owned 37 shares in the company, valued at $4,489.95. The trade was a 97.80% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. 1.02% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Lear

Institutional investors have recently added to or reduced their stakes in the stock. Bank of New York Mellon Corp acquired a new position in Lear during the second quarter worth about $65,397,000. Pacer Advisors Inc. grew its stake in Lear by 220.9% during the 4th quarter. Pacer Advisors Inc. now owns 258,063 shares of the auto parts company’s stock valued at $29,574,000 after acquiring an additional 177,632 shares in the last quarter. Diamond Hill Capital Management LLC Investment Advisor acquired a new stake in Lear in the 2nd quarter valued at about $17,423,000. Dimensional Fund Advisors LP raised its holdings in Lear by 3.8% in the 1st quarter. Dimensional Fund Advisors LP now owns 2,943,480 shares of the auto parts company’s stock valued at $356,380,000 after acquiring an additional 107,678 shares during the last quarter. Finally, Assenagon Asset Management S.A. acquired a new stake in Lear in the 3rd quarter valued at about $11,911,000. Institutional investors and hedge funds own 97.04% of the company’s stock.

Key Headlines Impacting Lear

Here are the key news stories impacting Lear this week:

• Positive Sentiment: Analysts expect Lear to report year-over-year earnings growth when it releases results on Friday, providing a potential catalyst for the stock. Lear Reports Next Week: Wall Street Expects Earnings Growth
• Positive Sentiment: Lear is being highlighted as a long-term value stock, which could attract investors given its relatively low valuation and the company’s prior earnings performance, including a recent quarterly earnings beat. Why Lear Is a Top Value Stock for the Long-Term
• Positive Sentiment: The average analyst price target is $143.58, substantially above Lear’s recent trading level, indicating considerable potential upside if earnings and industry conditions meet expectations. Lear Corporation Stock Has Average Price Target of $143.58
• Neutral Sentiment: Lear has appointed Fedele as chief financial officer. The leadership change may be relevant to investors, but the announcement provides no immediate change to earnings guidance or operating outlook. Lear Corporation Appoints Fedele as CFO
• Negative Sentiment: Zacks reports that Lear does not currently show the combination of indicators typically associated with a likely earnings beat. That caution may be weighing on the stock ahead of results, particularly while shares remain below their 50-day and 200-day moving averages. Lear Reports Next Week: Wall Street Expects Earnings Growth

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.