Raymond James & Associates Increases Position in Lear Co. by 90.3% in First Quarter
July 5, 2023
In a recent disclosure to the Securities and Exchange Commission, Raymond James & Associates announced that it has significantly increased its position in Lear Co. (NYSE:LEA) during the first quarter of this year. The firm’s holdings of the auto parts company’s stock jumped by a staggering 90.3%, adding an additional 40,465 shares to its portfolio. As a result, Raymond James & Associates now owns a total of 85,286 shares of Lear Co., equating to approximately 0.14% ownership stake in the company.
The value of Raymond James & Associates’ holdings is estimated to be around $11,897,000 at the end of the most recent quarter. This substantial increase signifies a notable degree of confidence placed by the firm in Lear Co.’s future prospects.
Lear Co., listed under the ticker symbol LEA on the New York Stock Exchange (NYSE:LEA), recently reported its earnings for the first quarter on April 27th. The auto parts company exceeded market expectations with earnings per share (EPS) of $2.78, surpassing consensus estimates by $0.23.
Furthermore, Lear reported revenue figures of $5.85 billion for the quarter, surpassing analysts’ predictions of $5.60 billion. This represented a substantial increase of 12.2% compared to revenues from the same period last year.
In terms of profitability, Lear demonstrated a net margin of 1.96% and an impressive return on equity (ROE) of 12.32%. The company appears to be well-positioned within its industry and showcased steady financial growth during this reporting period.
Analysts predict that Lear will post an EPS figure of 11.47 for the current fiscal year based on its strong performance in the first quarter. This projection further bolsters investor confidence in the company’s potential.
While Raymond James & Associates increased its position in Lear Co., insider activity has also been recorded. Director Greg C. Smith recently sold 2,221 shares of Lear stock on May 19th at an average price of $124.93, resulting in a transaction value of $277,469.53. CEO Raymond E. Scott also sold off 16,740 shares of Lear stock on June 16th at an average price of $142.80.
These insider sales were subsequently disclosed in legal filings with the SEC, underscoring the transparency maintained by Lear when it comes to corporate transactions.
The recent surge in insider selling actions suggests that company directors and executives have been capitalizing on the current market conditions to optimize their personal investment portfolios.
Despite this notable insider selling trend, it is important to note that corporate insiders currently hold approximately 0.75% of Lear’s outstanding stock, indicating that a significant portion is still held by institutional investors and the general public.
Investors and industry experts will be keeping a close eye on Lear Co.’s future performance as it strives to maintain its growth trajectory. With positive earnings figures for the last reported quarter and increased investments from prominent firms like Raymond James & Associates, the prospects for Lear appear promising.
Disclaimer: The information provided in this article is based solely on publicly available data and does not constitute financial advice or recommendations about specific investments or transactions. Investors should conduct their own research and consult with a qualified financial professional before making any investment decisions based on this information.
[bs_slider_forecast ticker=”LEA”]
Lear Emerges as a Leading Investment Choice in the Auto Parts Industry with Strong Institutional Interest and Positive Analyst Ratings
The financial landscape of the auto parts industry has seen a whirlwind of activity in recent times, with major investors making significant changes to their holdings. Notably, Allworth Financial LP increased its stake in Lear by a staggering 2,027.3% during the fourth quarter, acquiring an additional 223 shares and bringing its total ownership to 234 shares valued at $29,000. Similarly, EverSource Wealth Advisors LLC raised its stake by 49.6% during the same period, now owning 425 shares worth $53,000.
Another notable move came from OLD Mission Capital LLC, which entered the scene as a new investor in Lear during the fourth quarter with an investment valued at approximately $81,000. This influx of investments reflects a growing confidence in Lear and its prospects within the auto parts market.
Lazard Asset Management LLC also demonstrated strong belief in Lear’s potential by increasing its stake by 43.0% during the first quarter. The firm now owns 612 shares worth $86,000. Additionally, Itau Unibanco Holding S.A., showing an astonishing growth of 847.5%, holds 758 shares valued at $95,000.
These acquisitions by large institutional investors indicate that Lear is garnering attention and attracting capital from those who study the market closely and possess extensive knowledge of investment strategies.
Shares of Lear opened at $145.13 on July 5th, reflecting both stability and growth within the stock’s value over time. The company boasts a market capitalization of $8.57 billion and a price-to-earnings ratio of 20.56. With a beta of 1.56 and positive momentum throughout recent quarters, Lear exhibits favorable characteristics for prospective investors to consider.
Director Greg C. Smith made headlines when he sold 2,221 shares of Lear stock on May 19th for an average price of $124.93 per share — resulting in a significant transaction of $277,469.53. Similarly, CEO Raymond E. Scott sold 16,740 shares on June 16th at an average price of $142.80 per share, totaling $2,390,472.00. These high-profile sales signify the confidence that company insiders have in Lear’s continued success and future growth potential.
Investors seeking a steady stream of income would find Lear appealing as well due to its recent quarterly dividend announcement. On June 28th, shareholders received a dividend of $0.77 per share, indicating a dividend yield of 2.12% and an annualized payout ratio of 43.63%. This signifies sound financial management and commitment to rewarding shareholders with consistent returns.
Analysts from various reputable firms have weighed in on Lear’s performance and prospects for growth. Barclays lowered their target price from $155 to $150 but maintained a positive outlook on the stock’s potential performance in the market. BNP Paribas upgraded the stock from “neutral” to “outperform,” citing optimism for future growth opportunities.
Morgan Stanley increased its price target on Lear shares from $133 to $135 and gave it an “equal weight” rating in their analysis released on March 22nd. Additionally, StockNews.com initiated coverage on the stock with a “buy” rating on May 18th.
In total, six research firms currently rate Lear as a buy while six others consider it a hold. The consensus rating among analysts is labeled as “Moderate Buy,” reflecting positive sentiment towards the company’s current trajectory.
The recent movements by large institutional investors, coupled with the overall positive ratings from analysts, indicate that Lear is in Pole position within the auto parts industry. Its stable pricing and consistent dividends make it an attractive investment choice for both short-term profit potential and long-term portfolio growth strategies.