Lear (LEA) Stock Rating Reaffirmed by Longbow Research

Longbow Research reaffirmed their buy rating on shares of Lear (NYSE:LEA) in a research note published on Wednesday. Longbow Research currently has a $190.00 price target on the auto parts company’s stock.

LEA has been the topic of a number of other research reports. Robert W. Baird increased their target price on Lear from $140.00 to $158.00 and gave the company an outperform rating in a research note on Monday, January 28th. They noted that the move was a valuation call. KeyCorp increased their target price on Lear from $178.00 to $190.00 and gave the company an overweight rating in a research note on Monday, January 28th. Goldman Sachs Group reissued a buy rating and issued a $182.00 target price (up previously from $163.00) on shares of Lear in a research note on Monday, January 28th. Zacks Investment Research raised Lear from a hold rating to a buy rating and set a $175.00 target price on the stock in a research note on Tuesday, February 5th. Finally, Seaport Global Securities assumed coverage on Lear in a research note on Wednesday, February 13th. They issued a buy rating and a $199.00 target price on the stock. One equities research analyst has rated the stock with a sell rating, four have assigned a hold rating and thirteen have assigned a buy rating to the company’s stock. The stock currently has a consensus rating of Buy and a consensus price target of $181.07.

Shares of LEA stock traded down $1.69 on Wednesday, reaching $145.70. The company’s stock had a trading volume of 9,735 shares, compared to its average volume of 763,677. The company has a debt-to-equity ratio of 0.45, a quick ratio of 1.13 and a current ratio of 1.40. Lear has a 12-month low of $114.45 and a 12-month high of $206.36. The company has a market capitalization of $9.38 billion, a PE ratio of 7.98, a price-to-earnings-growth ratio of 3.46 and a beta of 1.40.

Lear (NYSE:LEA) last issued its quarterly earnings data on Friday, January 25th. The auto parts company reported $4.05 earnings per share (EPS) for the quarter, topping the Zacks’ consensus estimate of $3.96 by $0.09. Lear had a return on equity of 27.12% and a net margin of 5.37%. The company had revenue of $4.94 billion for the quarter, compared to the consensus estimate of $4.99 billion. During the same quarter last year, the business posted $4.38 earnings per share. The firm’s revenue was down 7.9% compared to the same quarter last year. On average, sell-side analysts forecast that Lear will post 17.97 EPS for the current fiscal year.

Lear declared that its Board of Directors has initiated a share buyback plan on Thursday, February 7th that authorizes the company to buyback $1.50 billion in outstanding shares. This buyback authorization authorizes the auto parts company to repurchase up to 15.6% of its shares through open market purchases. Shares buyback plans are usually a sign that the company’s management believes its shares are undervalued.

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, March 20th. Stockholders of record on Friday, March 1st will be paid a dividend of $0.75 per share. This is a boost from Lear’s previous quarterly dividend of $0.70. This represents a $3.00 dividend on an annualized basis and a dividend yield of 2.06%. The ex-dividend date of this dividend is Thursday, February 28th. Lear’s dividend payout ratio (DPR) is 15.37%.

In other news, VP Shari L. Burgess sold 3,500 shares of the firm’s stock in a transaction dated Tuesday, February 19th. The stock was sold at an average price of $156.00, for a total transaction of $546,000.00. The sale was disclosed in a legal filing with the SEC, which is available through the SEC website. Also, EVP Terrence B. Larkin sold 18,985 shares of the firm’s stock in a transaction dated Wednesday, February 13th. The shares were sold at an average price of $155.28, for a total value of $2,947,990.80. Following the transaction, the executive vice president now directly owns 2,752 shares in the company, valued at $427,330.56. The disclosure for this sale can be found here. 0.43% of the stock is currently owned by company insiders.

Several institutional investors have recently bought and sold shares of the company. American Century Companies Inc. boosted its holdings in shares of Lear by 205.8% during the fourth quarter. American Century Companies Inc. now owns 71,092 shares of the auto parts company’s stock worth $8,734,000 after purchasing an additional 47,842 shares during the period. Norges Bank purchased a new stake in shares of Lear during the fourth quarter worth about $653,026,000. Actinver Wealth Management Inc. purchased a new stake in shares of Lear during the fourth quarter worth about $242,000. Teacher Retirement System of Texas boosted its holdings in shares of Lear by 14.7% during the fourth quarter. Teacher Retirement System of Texas now owns 264,890 shares of the auto parts company’s stock worth $32,544,000 after purchasing an additional 33,873 shares during the period. Finally, Advisory Services Network LLC boosted its holdings in shares of Lear by 25.1% during the fourth quarter. Advisory Services Network LLC now owns 877 shares of the auto parts company’s stock worth $108,000 after purchasing an additional 176 shares during the period. Institutional investors own 96.21% of the company’s stock.

Lear Company Profile

Lear Corporation designs, develops, engineers, manufactures, assembles, and supplies automotive seating, and electrical distribution systems and related components primarily to automotive original equipment manufacturers worldwide. The company operates through Seating and E-Systems segments. The Seating segment includes seat systems and related components, such as leather and fabric products, seat trim covers, recliner mechanisms, seat tracks, seat structures and mechanisms, seat foams, and headrests primarily for automobiles and light trucks, compact cars, and sport utility vehicles, as well as thermoelectric seat heating and cooling systems.

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Analyst Recommendations for Lear (NYSE:LEA)

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