Bank of America Initiates Coverage on Lear (NYSE:LEA)

Equities researchers at Bank of America initiated coverage on shares of Lear (NYSE:LEA) in a research report issued to clients and investors on Wednesday. The brokerage set a “neutral” rating on the auto parts company’s stock.

Several other equities research analysts have also commented on the stock. The Goldman Sachs Group reaffirmed a “neutral” rating and set a $121.00 price target on shares of Lear in a research report on Thursday, January 15th. UBS Group increased their price objective on shares of Lear from $135.00 to $145.00 and gave the company a “neutral” rating in a report on Thursday, February 5th. Wells Fargo & Company increased their price objective on shares of Lear from $123.00 to $131.00 and gave the company an “equal weight” rating in a report on Thursday, February 5th. Barclays set a $140.00 target price on Lear in a report on Thursday, February 5th. Finally, Weiss Ratings reissued a “hold (c)” rating on shares of Lear in a research note on Thursday, January 22nd. One research analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating and nine have given a Hold rating to the stock. According to data from MarketBeat, the stock has a consensus rating of “Hold” and a consensus price target of $138.27.

Lear Stock Up 0.2%

NYSE:LEA traded up $0.23 during mid-day trading on Wednesday, hitting $123.84. 73,181 shares of the company’s stock were exchanged, compared to its average volume of 532,632. Lear has a one year low of $73.85 and a one year high of $142.84. The company has a debt-to-equity ratio of 0.52, a current ratio of 1.35 and a quick ratio of 1.05. The company has a market cap of $6.28 billion, a PE ratio of 15.20, a P/E/G ratio of 1.00 and a beta of 1.26. The business has a fifty day moving average price of $126.04 and a 200 day moving average price of $113.19.

Lear (NYSE:LEA) last issued its earnings results on Wednesday, February 4th. The auto parts company reported $3.41 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.67 by $0.74. The business had revenue of $5.99 billion during the quarter, compared to analysts’ expectations of $5.78 billion. Lear had a net margin of 1.88% and a return on equity of 13.40%. The business’s revenue for the quarter was up 4.8% compared to the same quarter last year. During the same period in the previous year, the company earned $2.94 earnings per share. Equities analysts predict that Lear will post 12.89 EPS for the current year.

Insider Activity

In other news, SVP Harry Albert Kemp sold 7,000 shares of the company’s stock in a transaction that occurred on Thursday, February 19th. The stock was sold at an average price of $136.31, for a total transaction of $954,170.00. Following the transaction, the senior vice president owned 17,423 shares of the company’s stock, valued at approximately $2,374,929.13. This represents a 28.66% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. Also, CFO Jason M. Cardew sold 10,000 shares of the firm’s stock in a transaction that occurred on Thursday, February 19th. The stock was sold at an average price of $134.51, for a total value of $1,345,100.00. Following the sale, the chief financial officer directly owned 22,741 shares of the company’s stock, valued at $3,058,891.91. This represents a 30.54% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 30,220 shares of company stock worth $3,986,427 over the last 90 days. Insiders own 0.91% of the company’s stock.

Institutional Trading of Lear

Several institutional investors and hedge funds have recently made changes to their positions in the business. Altshuler Shaham Ltd purchased a new position in Lear in the fourth quarter valued at $25,000. WealthCollab LLC acquired a new stake in shares of Lear during the 2nd quarter valued at about $28,000. Los Angeles Capital Management LLC purchased a new position in shares of Lear in the 4th quarter valued at about $30,000. Allworth Financial LP raised its holdings in Lear by 62.6% in the 3rd quarter. Allworth Financial LP now owns 309 shares of the auto parts company’s stock worth $31,000 after purchasing an additional 119 shares during the period. Finally, Global Retirement Partners LLC boosted its position in Lear by 942.3% during the fourth quarter. Global Retirement Partners LLC now owns 271 shares of the auto parts company’s stock worth $31,000 after purchasing an additional 245 shares in the last quarter. 97.04% of the stock is currently owned by institutional investors.

Lear News Summary

Here are the key news stories impacting Lear this week:

• Positive Sentiment: Q4 results beat expectations: Lear reported $3.41 EPS vs. consensus $2.67 and revenue of $5.99B vs. ~$5.78B, with revenue +4.8% year-over-year — this EPS/revenue beat supports the company’s earnings thesis and underpins analyst FY EPS expectations (~12.89).
• Neutral Sentiment: Valuation and balance-sheet profile are mixed: market cap ~$6.3B, PE ~15.2 and PEG ~1.0 suggest moderate valuation vs. growth; debt/equity ~0.52 and current/quick ratios (~1.35 / 1.05) indicate manageable leverage and adequate near-term liquidity.
• Neutral Sentiment: Technical picture: the stock recently pulled back toward the 50-day moving average (~$126) and remains above the 200-day (~$113). The move looks like a short-term consolidation after a run to the 12?month high (~$142.84).
• Negative Sentiment: Profitability is thin: reported net margin (~1.9%) is low for the headline revenue, leaving results sensitive to commodity costs, supply-chain disruptions, or OEM production swings — risks that can amplify downside in cyclical auto names.
• Negative Sentiment: No new company-specific catalysts in the latest newsfeed — absent fresh guidance, order wins, or OEM production updates, the stock is vulnerable to sector rotations and technical selling that don’t reflect a change in fundamentals.

About Lear

Lear Corporation (NYSE: LEA) is a global supplier of automotive seating and electrical distribution systems. The company designs, engineers and manufactures complete seat systems, seat components and power solutions for major vehicle manufacturers. Its electrical business delivers modules and components for battery management, infotainment, body and safety electronics, as well as advanced connectivity and electrification solutions.

The seating division develops lightweight, ergonomic seat structures, trim and mechanisms that address comfort, safety and environmental targets.