Lear Corp. (LEA) Rating Increased to Buy at Zacks Investment Research
Lear Corp. (NYSE:LEA) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a report issued on Tuesday. The brokerage presently has a $144.00 price target on the stock. Zacks Investment Research’s price target suggests a potential upside of 11.90% from the stock’s previous close.
According to Zacks, “Lear Corporation is a leading global supplier of automotive seating systems, electrical distribution systems and electronics. The seating segment consists of the manufacture, assembly and supply of vehicle seating requirements. The Company produces seat systems for automobiles and light trucks that are fully assembled and ready for installation. The electrical and electronic segment consists of the manufacture, assembly and supply of electrical and electronic systems and components for the vehicle. The Company is able to provide its customers with engineering and design solutions and manufactured systems, modules and components that optimally integrate the electrical distribution system of wiring, terminals and connectors, junction boxes and electronic modules within the overall architecture of the vehicle. Lear Corporation is headquartered in Southfield, Michigan. “
LEA has been the subject of a number of other reports. Goldman Sachs Group Inc. cut shares of Lear Corp. from a “neutral” rating to a “sell” rating and reduced their price objective for the stock from $116.00 to $107.00 in a research report on Thursday, October 6th. Royal Bank Of Canada cut shares of Lear Corp. from an “outperform” rating to a “sector perform” rating and upped their price objective for the stock from $120.00 to $121.00 in a research report on Friday, October 14th. JPMorgan Chase & Co. upped their price objective on shares of Lear Corp. from $129.00 to $130.00 and gave the stock a “neutral” rating in a research report on Friday, July 29th. RBC Capital Markets restated a “sector perform” rating and set a $127.00 price objective (up from $121.00) on shares of Lear Corp. in a research report on Thursday, October 27th. Finally, Citigroup Inc. upped their price objective on shares of Lear Corp. from $145.00 to $153.00 and gave the stock a “buy” rating in a research report on Tuesday, August 2nd. Two equities research analysts have rated the stock with a sell rating, nine have assigned a hold rating and three have given a buy rating to the stock. The company currently has an average rating of “Hold” and a consensus price target of $126.75.
Lear Corp. (NYSE:LEA) opened at 128.69 on Tuesday. The company’s 50 day moving average is $120.72 and its 200-day moving average is $115.63. The stock has a market capitalization of $9.03 billion, a PE ratio of 9.77 and a beta of 1.29. Lear Corp. has a 1-year low of $93.54 and a 1-year high of $130.59.
Lear Corp. (NYSE:LEA) last posted its quarterly earnings data on Wednesday, October 26th. The company reported $3.19 earnings per share for the quarter, topping the Zacks’ consensus estimate of $2.96 by $0.23. The company earned $4.50 billion during the quarter, compared to analysts’ expectations of $4.45 billion. Lear Corp. had a net margin of 5.26% and a return on equity of 31.86%. The firm’s revenue for the quarter was up 4.5% on a year-over-year basis. During the same period in the prior year, the business posted $2.56 earnings per share. Analysts forecast that Lear Corp. will post $13.69 earnings per share for the current fiscal year.
The business also recently announced a quarterly dividend, which will be paid on Friday, December 30th. Shareholders of record on Friday, December 9th will be paid a dividend of $0.30 per share. This represents a $1.20 annualized dividend and a yield of 0.93%. The ex-dividend date is Wednesday, December 7th. Lear Corp.’s dividend payout ratio (DPR) is presently 9.12%.
In other Lear Corp. news, Director Jonathan F. Foster sold 1,500 shares of the stock in a transaction dated Wednesday, September 28th. The shares were sold at an average price of $119.24, for a total transaction of $178,860.00. Following the completion of the transaction, the director now owns 4,025 shares of the company’s stock, valued at $479,941. The sale was disclosed in a legal filing with the SEC, which is available at this link. Company insiders own 0.33% of the company’s stock.
A number of hedge funds and other institutional investors have recently made changes to their positions in the company. Bank of Montreal Can bought a new position in shares of Lear Corp. during the second quarter valued at $222,829,000. Prudential Financial Inc. raised its position in shares of Lear Corp. by 292.7% in the third quarter. Prudential Financial Inc. now owns 686,532 shares of the company’s stock valued at $83,222,000 after buying an additional 511,701 shares during the period. Vanguard Group Inc. raised its position in shares of Lear Corp. by 9.7% in the second quarter. Vanguard Group Inc. now owns 5,704,450 shares of the company’s stock valued at $580,484,000 after buying an additional 502,415 shares during the period. Old Mutual Global Investors UK Ltd. raised its position in shares of Lear Corp. by 2,184.5% in the third quarter. Old Mutual Global Investors UK Ltd. now owns 476,476 shares of the company’s stock valued at $57,758,000 after buying an additional 455,619 shares during the period. Finally, AQR Capital Management LLC raised its position in shares of Lear Corp. by 30.8% in the second quarter. AQR Capital Management LLC now owns 1,668,029 shares of the company’s stock valued at $169,739,000 after buying an additional 392,597 shares during the period. 95.88% of the stock is owned by institutional investors.
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Lear Corp. Company Profile
Lear Corporation (Lear) is a supplier to the global automotive industry. The Company is engaged in supplying seating, electrical distribution systems and electronic modules, as well as related sub-systems, components and software, to automotive manufacturers. The Company operates through two segments: seating and electrical.
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