Lear (NYSE:LEA) Coverage Initiated by Analysts at Royal Bank Of Canada

Royal Bank Of Canada assumed coverage on shares of Lear (NYSE:LEA) in a research report report published on Thursday morning, Marketbeat Ratings reports. The brokerage issued a sector perform rating and a $135.00 target price on the auto parts company’s stock.

Several other brokerages have also recently issued reports on LEA. The Goldman Sachs Group reissued a “neutral” rating and set a $121.00 target price on shares of Lear in a report on Thursday, January 15th. UBS Group increased their price target on Lear from $135.00 to $145.00 and gave the stock a “neutral” rating in a research report on Thursday, February 5th. Weiss Ratings reiterated a “hold (c)” rating on shares of Lear in a research note on Thursday, January 22nd. Benchmark started coverage on Lear in a report on Thursday, February 19th. They issued a “buy” rating and a $170.00 price objective for the company. Finally, Argus upgraded Lear to a “strong-buy” rating in a research note on Monday, February 9th. One analyst has rated the stock with a Strong Buy rating, three have given a Buy rating and ten have assigned a Hold rating to the company’s stock. According to MarketBeat.com, the stock has an average rating of “Hold” and a consensus target price of $138.00.

Lear Price Performance

Shares of NYSE LEA opened at $115.50 on Thursday. Lear has a 52 week low of $73.85 and a 52 week high of $142.84. The business’s 50 day moving average price is $126.56 and its 200 day moving average price is $113.82. The company has a quick ratio of 1.05, a current ratio of 1.35 and a debt-to-equity ratio of 0.52. The firm has a market cap of $5.86 billion, a P/E ratio of 14.17, a P/E/G ratio of 0.85 and a beta of 1.26.

Lear (NYSE:LEA) last announced its quarterly earnings data on Wednesday, February 4th. The auto parts company reported $3.41 EPS for the quarter, beating the consensus estimate of $2.67 by $0.74. The business had revenue of $5.99 billion during the quarter, compared to analysts’ expectations of $5.78 billion. Lear had a net margin of 1.88% and a return on equity of 13.40%. The business’s quarterly revenue was up 4.8% compared to the same quarter last year. During the same period in the previous year, the business posted $2.94 EPS. On average, sell-side analysts expect that Lear will post 12.89 earnings per share for the current year.

Lear Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, March 25th. Shareholders of record on Thursday, March 5th will be paid a dividend of $0.77 per share. This represents a $3.08 annualized dividend and a yield of 2.7%. The ex-dividend date is Thursday, March 5th. Lear’s payout ratio is 37.79%.

Insider Transactions at Lear

In related news, CFO Jason M. Cardew sold 10,000 shares of the business’s stock in a transaction that occurred on Thursday, February 19th. The stock was sold at an average price of $134.51, for a total transaction of $1,345,100.00. Following the completion of the sale, the chief financial officer directly owned 22,741 shares in the company, valued at approximately $3,058,891.91. The trade was a 30.54% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, SVP Alicia J. Davis sold 6,630 shares of the stock in a transaction on Thursday, February 19th. The shares were sold at an average price of $132.98, for a total value of $881,657.40. Following the completion of the transaction, the senior vice president directly owned 9,972 shares of the company’s stock, valued at approximately $1,326,076.56. This represents a 39.93% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 30,220 shares of company stock worth $3,986,427 over the last three months. 0.91% of the stock is owned by insiders.

Institutional Investors Weigh In On Lear

A number of large investors have recently modified their holdings of LEA. M&T Bank Corp lifted its stake in shares of Lear by 46,707.8% in the fourth quarter. M&T Bank Corp now owns 951,602 shares of the auto parts company’s stock worth $109,054,000 after buying an additional 949,569 shares in the last quarter. Schroder Investment Management Group raised its holdings in Lear by 75.6% in the 2nd quarter. Schroder Investment Management Group now owns 1,801,284 shares of the auto parts company’s stock valued at $171,086,000 after acquiring an additional 775,476 shares during the last quarter. Norges Bank acquired a new stake in Lear in the 4th quarter valued at about $82,016,000. American Century Companies Inc. lifted its stake in Lear by 78.6% in the 2nd quarter. American Century Companies Inc. now owns 1,269,500 shares of the auto parts company’s stock worth $120,577,000 after purchasing an additional 558,538 shares in the last quarter. Finally, Balyasny Asset Management L.P. acquired a new position in shares of Lear during the 2nd quarter worth approximately $39,656,000. Hedge funds and other institutional investors own 97.04% of the company’s stock.

Lear News Summary

Here are the key news stories impacting Lear this week:

• Positive Sentiment: RBC started coverage of Lear with a “sector perform” rating and a $135 price target (~16.9% upside from the current level), which signals analyst confidence in upside potential and may support the stock as analysts and investors reassess estimates. Article Title
• Positive Sentiment: Lear’s most recent quarterly report (Feb 4) beat EPS and revenue estimates — $3.41 EPS vs. $2.67 expected and revenue of $5.99B vs. $5.78B — showing demand resilience in its auto-parts business and supporting near-term earnings visibility.
• Neutral Sentiment: Valuation and balance-sheet context: P/E ~14.2, PEG ~0.86, debt/equity ~0.52 — these metrics make Lear look reasonably valued versus peers, which could limit downside but also cap rapid re-rating absent stronger growth drivers.
• Neutral Sentiment: Technical and liquidity signals: trading volume is slightly below average and the stock sits between its 50‑day (~$126.55) and 200‑day (~$113.81) moving averages — watch the 200‑day for potential technical support.
• Negative Sentiment: Profitability pressure: despite the quarter’s top-line beat, net margin remains thin (~1.88%) and YoY revenue growth was modest (~4.8%), which could limit multiple expansion and make the stock sensitive to any cyclical weakness in vehicle production or commodity/FX headwinds.

Lear Company Profile

Lear Corporation (NYSE: LEA) is a global supplier of automotive seating and electrical distribution systems. The company designs, engineers and manufactures complete seat systems, seat components and power solutions for major vehicle manufacturers. Its electrical business delivers modules and components for battery management, infotainment, body and safety electronics, as well as advanced connectivity and electrification solutions.

The seating division develops lightweight, ergonomic seat structures, trim and mechanisms that address comfort, safety and environmental targets.