Wells Fargo & Company Cuts Lear (NYSE:LEA) Price Target to $126.00

Lear (NYSE:LEA) had its target price cut by Wells Fargo & Company from $131.00 to $126.00 in a research note published on Tuesday,Benzinga reports. They currently have an equal weight rating on the auto parts company’s stock.

A number of other research analysts also recently weighed in on LEA. Bank of America started coverage on Lear in a report on Wednesday, March 4th. They issued a “neutral” rating on the stock. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Lear in a research report on Thursday, January 22nd. Argus upgraded shares of Lear to a “strong-buy” rating in a research note on Monday, February 9th. Morgan Stanley raised their price objective on shares of Lear from $112.00 to $123.00 and gave the stock an “equal weight” rating in a report on Thursday, February 5th. Finally, Barclays set a $140.00 target price on shares of Lear in a research report on Thursday, February 5th. One analyst has rated the stock with a Strong Buy rating, three have given a Buy rating and ten have given a Hold rating to the stock. According to MarketBeat.com, Lear presently has an average rating of “Hold” and an average price target of $137.58.

Lear Trading Down 2.9%

Shares of LEA stock opened at $118.47 on Tuesday. The company has a current ratio of 1.35, a quick ratio of 1.05 and a debt-to-equity ratio of 0.52. Lear has a 12-month low of $73.85 and a 12-month high of $142.84. The stock has a market capitalization of $6.01 billion, a P/E ratio of 14.54, a P/E/G ratio of 0.88 and a beta of 1.24. The firm’s 50 day moving average is $125.24 and its 200 day moving average is $114.70.

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

Lear Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Wednesday, March 25th. Stockholders of record on Thursday, March 5th were paid a $0.77 dividend. The ex-dividend date of this dividend was Thursday, March 5th. This represents a $3.08 annualized dividend and a dividend yield of 2.6%. Lear’s dividend payout ratio (DPR) is 37.79%.

Insider Buying and Selling

In other news, CFO Jason M. Cardew sold 10,000 shares of Lear stock in a transaction dated Thursday, February 19th. The stock was sold at an average price of $134.51, for a total transaction of $1,345,100.00. Following the transaction, the chief financial officer directly owned 22,741 shares of the company’s stock, valued at $3,058,891.91. The trade was a 30.54% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, SVP Harry Albert Kemp sold 7,000 shares of the business’s stock in a transaction that occurred on Thursday, February 19th. The shares were sold at an average price of $136.31, for a total value 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 trade represents a 28.66% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 25,264 shares of company stock valued at $3,400,687 in the last 90 days. Corporate insiders own 0.91% of the company’s stock.

Hedge Funds Weigh In On Lear

A number of hedge funds have recently modified their holdings of the company. Altshuler Shaham Ltd purchased a new position in shares of Lear during the 4th quarter valued at $25,000. Los Angeles Capital Management LLC purchased a new stake in Lear in the 4th quarter worth $30,000. Global Retirement Partners LLC raised its holdings in Lear by 942.3% during the fourth quarter. Global Retirement Partners LLC now owns 271 shares of the auto parts company’s stock valued at $31,000 after acquiring an additional 245 shares during the period. WealthCollab LLC bought a new stake in Lear during the second quarter valued at about $28,000. Finally, Allworth Financial LP lifted its position in shares of Lear by 62.6% in the third quarter. Allworth Financial LP now owns 309 shares of the auto parts company’s stock valued at $31,000 after acquiring an additional 119 shares in the last quarter. 97.04% of the stock is currently owned by institutional investors.

Lear News Roundup

Here are the key news stories impacting Lear this week:

• Positive Sentiment: Zacks highlights Lear as a “Top Growth Stock for the Long-Term,” citing Zacks Style Scores as part of the bullish thesis for continued earnings and growth potential. Why Lear (LEA) is a Top Growth Stock for the Long-Term
• Positive Sentiment: MSN ran a similar long-term growth piece on Lear, reinforcing the buy-side narrative that the company’s earnings trajectory and positioning in auto interior/electrical systems support multi-year growth expectations. Why Lear (LEA) is a top growth stock for the long term
• Positive Sentiment: Recent fundamentals: Lear reported a Feb. quarter beat (EPS $3.41 vs. $2.67 est., revenue $5.99B vs. $5.78B est.), Y/Y revenue growth of ~4.8%, and analyst consensus expecting about $12.89 EPS for the fiscal year — supporting valuation metrics (P/E ~14.5, PEG ~0.87) that many growth/value investors find attractive.
• Neutral Sentiment: CNN maintains a company overview page for Lear that investors can use for quick reference on business segments and news flow. Lear Corporation
• Negative Sentiment: Technical and near-term market pressure: the stock is trading below its 50-day moving average ($125.30) and is nearer the 200-day average ($114.68), with intraday volume slightly above average — a setup consistent with short-term profit-taking after the recent run toward the 52-week high. These factors help explain the share decline today.

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.