Lear (NYSE:LEA) Reaches New 52-Week High After Strong Earnings

Lear Corporation (NYSE:LEA)’s stock price reached a new 52-week high during mid-day trading on Wednesday following a stronger than expected earnings report. The stock traded as high as $131.00 and last traded at $130.7450, with a volume of 110550 shares trading hands. The stock had previously closed at $119.60.

The auto parts company reported $3.41 earnings per share for the quarter, beating the consensus estimate of $2.67 by $0.74. Lear had a net margin of 1.92% and a return on equity of 13.44%. The firm had revenue of $5.99 billion during the quarter, compared to the consensus estimate of $5.78 billion. During the same period last year, the firm posted $2.94 EPS. The firm’s revenue for the quarter was up 4.8% on a year-over-year basis.

Lear Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Tuesday, December 30th. Shareholders of record on Wednesday, December 10th were issued a dividend of $0.77 per share. This represents a $3.08 dividend on an annualized basis and a yield of 2.3%. The ex-dividend date was Wednesday, December 10th. Lear’s dividend payout ratio is 37.65%.

Key Headlines Impacting Lear

Here are the key news stories impacting Lear this week:

• Positive Sentiment: Lear reported a meaningful Q4 beat — $3.41 EPS vs. $2.67 consensus and revenue of $5.99B vs. $5.78B — showing stronger-than-expected profitability and top-line execution for the quarter, which is the primary catalyst for the rally. Read More.
• Positive Sentiment: Management issued FY‑2026 revenue guidance roughly in line with Street expectations ($23.2B–$24.0B vs. ~$23.5B consensus), reducing near-term revenue uncertainty and supporting investor confidence in 2026 sales visibility. Read More.
• Positive Sentiment: Lear highlighted a $1.325B backlog through 2027 and said it expects margin expansion from automation and other efficiencies — a forward-looking leverage story that supports higher future margins and cash flow. Read More.
• Neutral Sentiment: Lear reported full‑year 2025 sales of $23.3B, down ~2% from 2024 — a modest decline that tempers the quarter’s upside but didn’t outweigh the beat in the eyes of investors. Read More.
• Neutral Sentiment: Company disclosed new large contracts amid industry headwinds — positive for backlog and revenue mix but execution risk remains as programs ramp. Read More.
• Negative Sentiment: Net margin remains thin (Q4 net margin ~1.9%) despite earnings beat — investors may worry about margin sustainability and cyclicality in parts demand. Read More.
• Negative Sentiment: Management’s EPS guidance detail was limited in early commentary (the company emphasized revenue ranges but market noted missing/unclear EPS specifics), leaving some analysts wanting clearer profit guidance. Read More.
• Neutral Sentiment: Lear has filed suit to restrict a former finance executive from joining a rival — a defensive move to protect corporate information that is unlikely to meaningfully move valuation unless it escalates. Read More.

Wall Street Analysts Forecast Growth

A number of analysts recently commented on LEA shares. Wall Street Zen raised Lear from a “buy” rating to a “strong-buy” rating in a research note on Friday, January 23rd. The Goldman Sachs Group reiterated a “neutral” rating and set a $121.00 price target on shares of Lear in a report on Thursday, January 15th. Barclays upped their price objective on shares of Lear from $125.00 to $127.00 and gave the company an “equal weight” rating in a research note on Friday, January 23rd. Morgan Stanley reiterated an “equal weight” rating and issued a $112.00 price target (down from $115.00) on shares of Lear in a report on Monday, December 8th. Finally, Wells Fargo & Company raised their price objective on Lear from $107.00 to $123.00 and gave the stock an “equal weight” rating in a report on Monday, January 12th. Two investment analysts have rated the stock with a Buy rating and nine have assigned a Hold rating to the stock. According to MarketBeat, the company currently has an average rating of “Hold” and a consensus target price of $126.20.

Insider Transactions at Lear

In other Lear news, CFO Jason M. Cardew sold 5,000 shares of the firm’s stock in a transaction dated Thursday, December 18th. The stock was 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 $1,801,383.48. This trade represents a 24.70% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Corporate insiders own 0.91% of the company’s stock.

Institutional Investors Weigh In On Lear

Several hedge funds have recently modified their holdings of LEA. Versor Investments LP boosted its holdings in Lear by 54.1% in the 4th quarter. Versor Investments LP now owns 5,700 shares of the auto parts company’s stock worth $653,000 after acquiring an additional 2,000 shares during the period. Denali Advisors LLC purchased a new position in shares of Lear in the fourth quarter valued at $218,000. Ethic Inc. grew its holdings in Lear by 158.6% during the 4th quarter. Ethic Inc. now owns 12,049 shares of the auto parts company’s stock valued at $1,381,000 after purchasing an additional 7,390 shares in the last quarter. Sequoia Financial Advisors LLC increased its stake in Lear by 29.0% during the 4th quarter. Sequoia Financial Advisors LLC now owns 8,184 shares of the auto parts company’s stock worth $938,000 after buying an additional 1,838 shares during the period. Finally, Indivisible Partners acquired a new position in Lear in the 4th quarter worth $568,000. 97.04% of the stock is currently owned by hedge funds and other institutional investors.

Lear Trading Up 10.7%

The business’s 50-day simple moving average is $117.29 and its two-hundred day simple moving average is $108.34. 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 $6.87 billion, a PE ratio of 16.19, a PEG ratio of 1.38 and a beta of 1.30.

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.