On October 11, 2023, UBS Group reduced the price objective for Lear (NYSE:LEA) from $150.00 to $145.00 in a note issued to investors, according to Benzinga. The auto parts company currently holds a “neutral” rating from the firm. UBS Group’s revised price objective suggests a potential upside of 6.81% from the stock’s previous closing price.
During midday trading on Tuesday, LEA stock traded up $0.41 and reached $135.75. Approximately 120,667 shares of the company’s stock were traded, compared to its average volume of 580,662. Lear has a quick ratio of 1.06, a current ratio of 1.36, and a debt-to-equity ratio of 0.54.
Over the past year, Lear’s stock has ranged between a low of $114.67 and a high of $157.90. Currently, the company has a market capitalization of $7.97 billion with a price-to-earnings ratio of 15.52 and a P/E/G ratio of 0.35. Additionally, it has exhibited a beta value of 1.59.
Lear’s fifty-day moving average price stands at $141.19 while its two-hundred-day moving average price is reported as $138.14.
In terms of shareholder activity, several hedge funds have recently bought and sold shares of Lear’s stock:
– Tokio Marine Asset Management Co Ltd., during the second quarter, raised its position by 4.7%, now owning 1,748 shares valued at $251,000.
– BI Asset Management Fondsmaeglerselskab A S increased its stake in Lear by 65.4% during Q2 to own 220 shares worth approximately $32,000.
– Commonwealth Equity Services LLC experienced a 3.0% increase in its position during Q3, owning 2,998 shares valued at $358,000.
– EverSource Wealth Advisors LLC saw a 21.4% rise in Lear holdings during Q1, now owning 516 shares valued at $72,000.
– Penobscot Wealth Management gained an additional 1.7% ownership of Lear’s stock during Q2 to own 6,239 shares worth around $895,000.
Currently, institutional investors own approximately 97.04% of Lear’s stock.
Regarding the company’s financial performance, on August 1st of this year, Lear released its quarterly earnings report. In that quarter, the auto parts company reported earnings per share (EPS) of $3.33, surpassing analysts’ consensus estimates of $3.21 by a margin of $0.12. Furthermore, Lear achieved a return on equity of 13.84% and a net margin of 2.32%. The company generated revenue amounting to $6 billion during the quarter compared to analyst expectations of $5.89 billion. In contrast to the same period the previous year when the firm posted EPS of $1.79, Lear’s quarterly revenue experienced an impressive growth rate of 18.3%.
As for future projections from sell-side analysts covering Lear, they forecast that the company will post earnings per share of approximately 11.83 for the current fiscal year.
In conclusion, UBS Group has reduced its price objective for Lear (NYSE:LEA) from $150.00 to $145.00 with a “neutral” rating for the auto parts company’s stock based on Benzinga’s report dated October 11,2023.
Lear Corporation Receives Mixed Analyst Ratings and Insider Selling Raises Questions
October 11, 2023
Lear Corporation Receives Mixed Analyst Ratings and Insider Selling Continues
Lear Corporation, a leading automotive seating and electrical systems supplier, has recently seen a range of opinions from research analysts regarding its stock performance. These reports have had a significant impact on the market sentiment surrounding the company. However, it seems that even with differing views among analysts, Lear continues to attract attention from investors.
Argus, a well-respected research firm, raised their price objective for Lear from $150.00 to $180.00 and maintained a “buy” rating in their latest research note dated August 2nd. This optimistic view suggests that the company is poised for further growth.
Conversely, Wells Fargo & Company reduced their price target on Lear from $164.00 to $142.00 and maintained an “equal weight” rating on October 3rd. These more tempered expectations indicate a sense of caution among some analysts regarding the stock’s potential.
Barclays also presented an encouraging outlook for Lear by increasing their price objective from $150.00 to $165.00 in their report on July 10th. Their positive stance aligns with Argus’ viewpoint and adds credence to the company’s growth prospects.
StockNews.com followed suit by initiating coverage on Lear with a “buy” rating in their research report released on October 5th. This supports the notion that investor interest in the company remains strong, as more sources recommend buying the stock.
Benchmark’s recent research note revealed an even more bullish perspective, boosting their target price for Lear from $182.00 to $188.00 on August 2nd while reiterating a “buy” rating on the stock. This notably high target price suggests significant growth potential according to Benchmark’s analysis.
Overall, six out of twelve research analysts have issued hold ratings on Lear’s stock while another six maintain buy ratings. According to data from Bloomberg.com, the consensus rating for Lear is currently labeled “Moderate Buy” with a consensus target price of $159.00.
In addition to analyst opinions, recent insider activity has also caught attention. Senior Vice President Carl A. Esposito sold 10,310 shares of Lear’s stock on August 4th at an average price of $155.00 per share, amounting to a total transaction value of $1,598,050.00. Meanwhile, Chief Financial Officer Jason M. Cardew offloaded 2,750 shares on August 3rd at an average price of $151.57 per share, totaling $416,817.50 in sales.
These insider sell-offs have raised eyebrows among investors and market observers alike. Some may interpret these actions as a lack of confidence in Lear’s future performance or potential concerns about industry trends.
However, it is important to note that insiders have sold a total of 25,392 shares in the last ninety days worth approximately $3,931,260. This represents only 0.75% of the company’s stock ownership by insiders. While it is always worthwhile to monitor insider activity for potential signals regarding a company’s prospects, it is equally essential not to overanalyze individual transactions.
Lear Corporation continues to be an intriguing investment opportunity in the automotive industry despite mixed analyst ratings and insider selling activities. Investors should conduct further research and carefully consider all available information before making any decisions regarding their investments in the company.
Disclosure: The author does not hold any positions in Lear Corporation at the time of writing this article.