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

Wall Street Zen downgraded shares of Lear (NYSE:LEA) from a strong-buy rating to a buy rating in a research note published on Saturday.

Other equities research analysts also recently issued research reports about the company. Citigroup raised their price objective on Lear from $177.00 to $179.00 and gave the company a “buy” rating in a research report on Monday, May 4th. Deutsche Bank Aktiengesellschaft set a $133.00 target price on shares of Lear in a report on Monday, May 4th. JPMorgan Chase & Co. increased their price target on shares of Lear from $153.00 to $159.00 and gave the company an “overweight” rating in a research report on Friday, July 10th. Royal Bank Of Canada raised their price target on shares of Lear from $138.00 to $143.00 and gave the company a “sector perform” rating in a report on Monday, July 13th. Finally, Wells Fargo & Company lifted their price objective on shares of Lear from $133.00 to $137.00 and gave the stock an “equal weight” rating in a research report on Thursday, June 25th. One equities research analyst has rated the stock with a Strong Buy rating, five have given a Buy rating and ten have assigned a Hold rating to the company. Based on data from MarketBeat.com, Lear currently has a consensus rating of “Hold” and a consensus price target of $145.23.

Lear Stock Performance

Shares of NYSE:LEA opened at $125.34 on Friday. The firm has a 50 day moving average of $139.78 and a 200 day moving average of $131.17. The company has a quick ratio of 1.04, a current ratio of 1.31 and a debt-to-equity ratio of 0.51. The company has a market capitalization of $6.28 billion, a price-to-earnings ratio of 11.68, a price-to-earnings-growth ratio of 0.63 and a beta of 1.25. Lear has a 52 week low of $92.10 and a 52 week high of $150.33.

Lear (NYSE:LEA) last announced its earnings results on Friday, July 31st. The auto parts company reported $4.28 earnings per share (EPS) for the quarter, beating the consensus estimate of $3.98 by $0.30. The business had revenue of $6.21 billion for the quarter, compared to analysts’ expectations of $6.15 billion. Lear had a return on equity of 14.18% and a net margin of 2.35%.The business’s revenue for the quarter was up 3.0% on a year-over-year basis. During the same quarter last year, the firm earned $3.06 EPS. On average, sell-side analysts predict that Lear will post 14.81 earnings per share for the current fiscal year.

Lear Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Tuesday, June 23rd. Investors of record on Wednesday, June 3rd were paid a dividend of $0.77 per share. This represents a $3.08 annualized dividend and a yield of 2.5%. The ex-dividend date was Wednesday, June 3rd. Lear’s payout ratio is 28.70%.

Insiders Place Their Bets

In other news, CEO Raymond E. Scott sold 50,000 shares of the business’s stock in a transaction dated Wednesday, June 24th. The stock was sold at an average price of $135.37, for a total transaction of $6,768,500.00. Following the sale, the chief executive officer owned 49,789 shares in the company, valued at approximately $6,739,936.93. The trade was a 50.11% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, SVP Nicholas Jon Roelli sold 2,336 shares of the business’s stock in a transaction dated Friday, May 22nd. The stock was sold at an average price of $141.38, for a total value of $330,263.68. Following the sale, the senior vice president owned 2,339 shares in the company, valued at $330,687.82. The trade was a 49.97% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders sold 62,026 shares of company stock valued at $8,498,248. 1.02% of the stock is currently owned by corporate insiders.

Institutional Trading of Lear

A number of institutional investors have recently bought and sold shares of LEA. Impax Asset Management Group plc lifted its stake in Lear by 33.1% during the 4th quarter. Impax Asset Management Group plc now owns 17,264 shares of the auto parts company’s stock valued at $1,978,000 after acquiring an additional 4,293 shares during the period. Life Cycle Investment Partners Ltd acquired a new stake in shares of Lear in the fourth quarter worth $22,539,000. Convergence Investment Partners LLC raised its holdings in shares of Lear by 154.6% during the fourth quarter. Convergence Investment Partners LLC now owns 24,720 shares of the auto parts company’s stock worth $2,833,000 after purchasing an additional 15,010 shares during the last quarter. Leuthold Group LLC raised its holdings in shares of Lear by 41.5% during the fourth quarter. Leuthold Group LLC now owns 47,513 shares of the auto parts company’s stock worth $5,445,000 after purchasing an additional 13,937 shares during the last quarter. Finally, Fifth Third Bancorp lifted its position in Lear by 5,987.3% during the first quarter. Fifth Third Bancorp now owns 23,436 shares of the auto parts company’s stock valued at $2,838,000 after purchasing an additional 23,051 shares during the period. 97.04% of the stock is currently owned by institutional investors and hedge funds.

Lear News Summary

Here are the key news stories impacting Lear this week:

• Positive Sentiment: Wells Fargo raised its price target for Lear from $137 to $138 while maintaining an “equal weight” rating, implying meaningful potential upside from recent trading levels. Benzinga analyst note
• Positive Sentiment: Recent earnings coverage highlighted automation-led momentum, while Lear also raised its 2026 sales outlook and expanded capital flexibility. These developments support the company’s growth and cash-management outlook. Lear earnings call highlights
• Neutral Sentiment: Analysts are focusing on Lear’s international revenue trends and their potential effect on Wall Street forecasts. The outlook depends on whether overseas growth can offset regional automotive production and demand volatility. Zacks international revenue analysis
• Neutral Sentiment: Lear filed shelf registrations covering 1.725 million ESOP shares and potential future funding. The filing provides financial flexibility but could raise dilution concerns depending on how the shares or capital are used. Lear shelf registration report
• Negative Sentiment: BNP Paribas Exane downgraded Lear from “outperform” to “neutral,” adding to the cautious tone around the stock and potentially limiting near-term buying interest. Lear analyst downgrade
• Negative Sentiment: The stock declined sharply after the earnings update even though Lear raised its sales outlook, indicating investors may be concerned about the quality of growth, margins, industry conditions or the details of its capital plans. Lear post-earnings market reaction

Lear Company Profile

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.