Lear (NYSE:LEA) Stock: Insider Jason Cardew Sells 5,000 Shares

Lear Corporation (NYSE:LEA) CFO Jason Cardew sold 5,000 shares of the stock in a transaction on Tuesday, November 3rd. The shares were sold at an average price of $117.75, for a total value of $588,750.00. Following the completion of the transaction, the chief financial officer directly owned 8,241 shares in the company, valued at approximately $970,377.75. This represents a 37.76% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink.

Lear Trading Down 4.0%

Shares of LEA opened at $113.93 on Friday. The company has a debt-to-equity ratio of 0.40, a quick ratio of 0.92 and a current ratio of 1.18. The firm has a market cap of $5.49 billion, a price-to-earnings ratio of 9.95, a PEG ratio of 0.67 and a beta of 1.28. The firm has a 50 day moving average price of $121.63 and a 200-day moving average price of $128.25. Lear Corporation has a fifty-two week low of $99.00 and a fifty-two week high of $150.33.

Lear (NYSE:LEA) last released its earnings results on Friday, October 30th. The auto parts company reported $3.71 earnings per share for the quarter, beating analysts’ consensus estimates of $3.32 by $0.39. The company had revenue of $5.77 billion during the quarter, compared to analyst estimates of $5.81 billion. Lear had a return on equity of 14.92% and a net margin of 2.46%. Lear’s revenue for the quarter was up 1.6% on a year-over-year basis. During the same quarter in the previous year, the company posted $2.79 EPS. As a group, equities research analysts forecast that Lear Corporation will post 15.15 earnings per share for the current year.

Lear Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Tuesday, September 22nd. Stockholders of record on Wednesday, September 2nd were paid a dividend of $0.77 per share. The ex-dividend date of this dividend was Wednesday, September 2nd. This represents a $3.08 annualized dividend and a dividend yield of 2.7%. Lear’s payout ratio is 26.90%.

Lear announced that its board has authorized a stock repurchase plan on Thursday, September 24th that authorizes the company to buy back $1.50 billion in outstanding shares. This repurchase authorization authorizes the auto parts company to buy up to 25.7% of its shares through open market purchases. Stock repurchase plans are typically an indication that the company’s leadership believes its stock is undervalued.

Institutional Investors Weigh In On Lear

Several large investors have recently bought and sold shares of LEA. Altshuler Shaham Ltd raised its stake in shares of Lear by 36.5% during the 1st quarter. Altshuler Shaham Ltd now owns 303 shares of the auto parts company’s stock worth $37,000 after acquiring an additional 81 shares in the last quarter. Putney Financial Group LLC acquired a new stake in Lear during the 3rd quarter worth about $37,000. Provenance Wealth Advisors LLC increased its holdings in Lear by 5,166.7% in the 3rd quarter. Provenance Wealth Advisors LLC now owns 474 shares of the auto parts company’s stock worth $56,000 after buying an additional 465 shares during the period. Root Financial Partners LLC acquired a new stake in shares of Lear in the third quarter worth $58,000. Finally, Mirae Asset Global Investments Co. Ltd. purchased a new position in shares of Lear during the 3rd quarter valued at about $63,000. Institutional investors own 97.04% of the company’s stock.

Analyst Upgrades and Downgrades

A number of equities analysts have issued reports on LEA shares. The Goldman Sachs Group decreased their price objective on Lear from $140.00 to $124.00 and set a “buy” rating for the company in a report on Tuesday, October 6th. Wells Fargo & Company increased their price objective on Lear from $137.00 to $138.00 and gave the company an “equal weight” rating in a research report on Monday, August 3rd. JPMorgan Chase & Co. lowered shares of Lear from an “overweight” rating to a “neutral” rating and decreased their target price for the company from $175.00 to $150.00 in a research note on Tuesday, September 15th. Deutsche Bank Aktiengesellschaft set a $131.00 price objective on shares of Lear in a research note on Monday, August 3rd. Finally, Weiss Ratings lowered Lear from a “buy (b-)” rating to a “hold (c+)” rating in a report on Wednesday, September 9th. One investment analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating and twelve have assigned a Hold rating to the company. According to data from MarketBeat.com, the stock presently has an average rating of “Hold” and an average price target of $143.25.

Lear News Summary

Here are the key news stories impacting Lear this week:

• Positive Sentiment: Lear’s latest quarter showed earnings of $3.71 per share, beating the $3.32 consensus estimate; revenue grew 1.6% year over year. However, revenue of $5.77 billion was just below forecasts. Article: Lear CFO share sale and financial results
• Neutral Sentiment: The stock recently moved above its 50-day moving average, a potentially supportive technical signal, though that has not prevented recent weakness. Article: Lear Stock Price Breaks Above Fifty Day Moving Average
• Negative Sentiment: Royal Bank of Canada lowered its price target to $135 from $139 and maintained a “sector perform” rating, pointing to a near-term China overhang that could weigh on Lear’s outlook. Article: Lear Faces Near Term China Overhang, RBC Says
• Negative Sentiment: CFO Jason Cardew sold 5,000 shares for about $589,000, reducing his direct stake by 37.76%. The filing did not state a reason for the sale, so it is not conclusive evidence about the company’s prospects. SEC insider transaction filing

Lear Company Profile

Lear Corporation is a global automotive technology company that designs and manufactures products used in passenger vehicles and commercial vehicles. Its operations are organized primarily around two areas: seating and e-systems. Lear supplies complete vehicle seating systems, including seats, structures, mechanisms, foam, covers and related components, as well as electrical distribution systems and other technologies that support vehicle power management and connectivity.

The company serves automotive manufacturers and their vehicle programs in major markets across North America, Europe, Asia and other regions.