Lear (NYSE:LEA) Sets New 52-Week High – Should You Buy?

Lear Corporation (NYSE:LEA) shares reached a new 52-week high during mid-day trading on Thursday . The stock traded as high as $123.80 and last traded at $121.5870, with a volume of 305016 shares trading hands. The stock had previously closed at $123.42.

Wall Street Analyst Weigh In

Several research firms recently commented on LEA. Morgan Stanley restated an “equal weight” rating and set a $112.00 price target (down previously from $115.00) on shares of Lear in a research report on Monday, December 8th. Evercore ISI increased their target price on shares of Lear from $110.00 to $120.00 and gave the stock an “in-line” rating in a research note on Monday, November 24th. UBS Group dropped their target price on Lear from $109.00 to $106.00 and set a “neutral” rating on the stock in a research report on Monday, October 6th. JPMorgan Chase & Co. upped their price target on Lear from $133.00 to $138.00 and gave the stock an “overweight” rating in a report on Monday, November 3rd. Finally, Wells Fargo & Company dropped their price objective on Lear from $112.00 to $107.00 and set an “equal weight” rating on the stock in a report on Tuesday, December 9th. Two research analysts have rated the stock with a Buy rating and ten have given a Hold rating to the company’s stock. Based on data from MarketBeat.com, Lear presently has an average rating of “Hold” and an average price target of $119.80.

Lear Trading Down 1.4%

The company has a fifty day moving average of $111.75 and a 200-day moving average of $105.84. The company has a current ratio of 1.35, a quick ratio of 1.05 and a debt-to-equity ratio of 0.53. The company has a market capitalization of $6.45 billion, a price-to-earnings ratio of 15.21, a PEG ratio of 1.17 and a beta of 1.30.

Lear (NYSE:LEA) last released its earnings results on Friday, October 31st. The auto parts company reported $2.79 earnings per share for the quarter, beating the consensus estimate of $2.76 by $0.03. The business had revenue of $5.68 billion for the quarter, compared to the consensus estimate of $5.63 billion. Lear had a return on equity of 13.44% and a net margin of 1.92%.The business’s quarterly revenue was up 1.7% compared to the same quarter last year. During the same quarter last year, the business posted $2.89 earnings per share. As a group, equities research analysts anticipate that Lear Corporation will post 12.89 earnings per share for the current fiscal year.

Lear Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Tuesday, December 30th. Stockholders of record on Wednesday, December 10th were issued a dividend of $0.77 per share. The ex-dividend date of this dividend was Wednesday, December 10th. This represents a $3.08 dividend on an annualized basis and a dividend yield of 2.5%. Lear’s dividend payout ratio is presently 37.65%.

Insider Activity at Lear

In other news, CFO Jason M. Cardew sold 5,000 shares of the firm’s stock in a transaction dated Thursday, December 18th. The shares were sold at an average price of $118.17, for a total value of $590,850.00. Following the transaction, the chief financial officer directly owned 15,244 shares of the company’s stock, valued at approximately $1,801,383.48. This trade represents a 24.70% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this link. 0.91% of the stock is owned by company insiders.

Institutional Trading of Lear

A number of hedge funds have recently bought and sold shares of LEA. IFP Advisors Inc lifted its stake in Lear by 1,384.2% in the 2nd quarter. IFP Advisors Inc now owns 282 shares of the auto parts company’s stock worth $27,000 after purchasing an additional 263 shares in the last quarter. WealthCollab LLC purchased a new position in Lear during the second quarter worth approximately $28,000. Allworth Financial LP boosted its stake in Lear by 62.6% during the third quarter. Allworth Financial LP now owns 309 shares of the auto parts company’s stock worth $31,000 after buying an additional 119 shares during the last quarter. Advisory Services Network LLC purchased a new stake in Lear in the 3rd quarter valued at $33,000. Finally, Quent Capital LLC purchased a new stake in Lear in the 3rd quarter valued at $38,000. Institutional investors and hedge funds own 97.04% of the company’s stock.

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.