Lear (NYSE:LEA) Earns Sector Perform Rating from Analysts at Royal Bank Of Canada

Royal Bank Of Canada began coverage on shares of Lear (NYSE:LEA) in a report issued on Thursday, Marketbeat reports. The brokerage issued a sector perform rating and a $135.00 price objective on the auto parts company’s stock.

Several other research firms have also issued reports on LEA. Wall Street Zen raised shares of Lear from a “buy” rating to a “strong-buy” rating in a research note on Friday, January 23rd. Wells Fargo & Company increased their target price on shares of Lear from $123.00 to $131.00 and gave the stock an “equal weight” rating in a research report on Thursday, February 5th. TD Cowen raised their target price on Lear from $117.00 to $133.00 and gave the company a “hold” rating in a report on Thursday, February 5th. Barclays set a $140.00 price target on Lear in a research report on Thursday, February 5th. Finally, Evercore upped their price target on Lear from $110.00 to $120.00 and gave the stock an “in-line” rating in a research note on Monday, November 24th. One analyst has rated the stock with a Strong Buy rating, three have given a Buy rating and ten have assigned a Hold rating to the company. According to MarketBeat, the company has an average rating of “Hold” and a consensus price target of $138.00.

Lear Price Performance

Shares of LEA opened at $114.15 on Thursday. The firm has a market cap of $5.79 billion, a PE ratio of 14.01, a PEG ratio of 0.82 and a beta of 1.26. The firm’s 50 day moving average price is $126.48 and its 200 day moving average price is $113.88. The company has a debt-to-equity ratio of 0.52, a quick ratio of 1.05 and a current ratio of 1.35. Lear has a twelve month low of $73.85 and a twelve month high of $142.84.

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

Lear Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Wednesday, March 25th. Stockholders of record on Thursday, March 5th will be issued a $0.77 dividend. The ex-dividend date of this dividend is Thursday, March 5th. This represents a $3.08 dividend on an annualized basis and a dividend yield of 2.7%. Lear’s dividend payout ratio is presently 37.79%.

Insider Buying and Selling

In other Lear news, SVP Harry Albert Kemp sold 7,000 shares of the company’s stock in a transaction on Thursday, February 19th. The stock was sold at an average price of $136.31, for a total value of $954,170.00. Following the sale, the senior vice president directly owned 17,423 shares in the company, valued at $2,374,929.13. This represents a 28.66% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, VP Marianne Vidershain sold 1,590 shares of the stock in a transaction on Tuesday, February 24th. The stock was sold at an average price of $135.00, for a total value of $214,650.00. Following the transaction, the vice president owned 1,862 shares of the company’s stock, valued at $251,370. This represents a 46.06% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 30,220 shares of company stock worth $3,986,427 over the last 90 days. Corporate insiders own 0.91% of the company’s stock.

Institutional Investors Weigh In On Lear

Several institutional investors and hedge funds have recently made changes to their positions in LEA. Vest Financial LLC boosted its position in Lear by 134.9% in the third quarter. Vest Financial LLC now owns 25,951 shares of the auto parts company’s stock valued at $2,611,000 after buying an additional 14,904 shares in the last quarter. American Century Companies Inc. increased its holdings in shares of Lear by 23.6% during the third quarter. American Century Companies Inc. now owns 1,569,341 shares of the auto parts company’s stock worth $157,891,000 after buying an additional 299,841 shares in the last quarter. Capital Management Corp VA bought a new position in shares of Lear in the third quarter valued at approximately $2,295,000. Prudential Financial Inc. raised its stake in shares of Lear by 2,060.5% in the second quarter. Prudential Financial Inc. now owns 104,720 shares of the auto parts company’s stock valued at $10,009,000 after acquiring an additional 99,873 shares during the last quarter. Finally, Meritage Portfolio Management acquired a new position in shares of Lear in the 3rd quarter worth approximately $3,268,000. Institutional investors and hedge funds own 97.04% of the company’s stock.

Lear News Roundup

Here are the key news stories impacting Lear this week:

• Positive Sentiment: Lear’s recent quarterly results remain supportive: the company beat EPS and revenue expectations in its February quarter (reported EPS $3.41 vs. $2.67 est.; revenue $5.99B vs. $5.78B est.), and analysts still model solid full‑year earnings. This earnings beat underpins the view that Lear’s fundamentals are improving.
• Positive Sentiment: Analyst commentary highlighting valuation: Zacks published a piece arguing LEA is a long‑term value pick, pointing to attractive valuation metrics (P/E ~14, PEG ~0.85) and potential upside for value‑oriented investors. Read More.
• Neutral Sentiment: RBC Capital initiated coverage with a “sector perform” rating and a $135 price target (roughly mid‑teens upside vs. current levels). The price target is constructive, but the sector‑perform stance signals RBC expects Lear to perform roughly in line with peers rather than outperform. Read More.

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.