Stock Traders Purchase High Volume of Put Options on Lear (NYSE:LEA)
Lear Co. (NYSE:LEA) saw unusually large options trading on Thursday. Stock traders bought 1,041 put options on the stock. This is an increase of approximately 1,019% compared to the average volume of 93 put options.
Several research analysts have commented on LEA shares. Morgan Stanley cut their price target on Lear from $165.00 to $143.00 and set an “overweight” rating on the stock in a research report on Wednesday, August 14th. Citigroup cut their price target on Lear from $144.00 to $135.00 and set a “neutral” rating on the stock in a research report on Tuesday, July 30th. Royal Bank of Canada lowered Lear from an “outperform” rating to a “sector perform” rating and cut their price target for the stock from $160.00 to $135.00 in a research report on Wednesday, July 17th. KeyCorp cut their price target on Lear from $185.00 to $170.00 and set an “overweight” rating on the stock in a research report on Friday, July 12th. They noted that the move was a valuation call. Finally, ValuEngine lowered Lear from a “sell” rating to a “strong sell” rating in a research report on Wednesday, July 17th. One investment analyst has rated the stock with a sell rating, nine have issued a hold rating and eight have assigned a buy rating to the stock. Lear currently has an average rating of “Hold” and a consensus price target of $155.60.
Several large investors have recently added to or reduced their stakes in the company. Pzena Investment Management LLC increased its holdings in shares of Lear by 46.9% in the second quarter. Pzena Investment Management LLC now owns 3,834,303 shares of the auto parts company’s stock valued at $534,003,000 after purchasing an additional 1,223,567 shares during the period. FMR LLC grew its holdings in Lear by 80.3% during the first quarter. FMR LLC now owns 1,312,921 shares of the auto parts company’s stock worth $178,176,000 after acquiring an additional 584,719 shares during the period. Charles Schwab Investment Management Inc. grew its holdings in Lear by 6.0% during the second quarter. Charles Schwab Investment Management Inc. now owns 476,078 shares of the auto parts company’s stock worth $66,304,000 after acquiring an additional 27,149 shares during the period. Invesco Ltd. grew its holdings in Lear by 482.8% during the second quarter. Invesco Ltd. now owns 414,921 shares of the auto parts company’s stock worth $57,786,000 after acquiring an additional 343,724 shares during the period. Finally, Nuveen Asset Management LLC grew its holdings in Lear by 1,220.8% during the second quarter. Nuveen Asset Management LLC now owns 391,246 shares of the auto parts company’s stock worth $54,489,000 after acquiring an additional 361,624 shares during the period. 89.93% of the stock is currently owned by institutional investors and hedge funds.
Lear (NYSE:LEA) last released its earnings results on Friday, July 26th. The auto parts company reported $3.78 earnings per share (EPS) for the quarter, missing the Zacks’ consensus estimate of $3.82 by ($0.04). The company had revenue of $5.01 billion during the quarter, compared to analyst estimates of $5.03 billion. Lear had a net margin of 4.38% and a return on equity of 23.18%. The company’s revenue for the quarter was down 10.3% on a year-over-year basis. During the same period in the previous year, the firm posted $4.95 EPS. On average, equities analysts anticipate that Lear will post 14.98 EPS for the current fiscal year.
The business also recently announced a quarterly dividend, which will be paid on Tuesday, September 17th. Stockholders of record on Thursday, August 29th will be issued a $0.75 dividend. This represents a $3.00 dividend on an annualized basis and a dividend yield of 2.37%. The ex-dividend date of this dividend is Wednesday, August 28th. Lear’s payout ratio is currently 16.47%.
Lear Corporation designs, develops, engineers, manufactures, assembles, and supplies automotive seating, and electrical distribution systems and related components for automotive original equipment manufacturers worldwide. It operates in two segments, Seating and E-Systems. The Seating segment offers leather and fabric products, seat trim covers, recliner mechanisms, seat tracks and foams, seat structures and mechanisms, and headrests for automobiles and light trucks, compact cars, and sport utility vehicles; and heating and cooling systems.
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