Royce & Associates LP Cuts Position in Lear Corporation $LEA

Royce & Associates LP reduced its stake in shares of Lear Corporation (NYSE:LEA) by 12.5% in the fourth quarter, HoldingsChannel reports. The firm owned 86,617 shares of the auto parts company’s stock after selling 12,341 shares during the period. Royce & Associates LP’s holdings in Lear were worth $9,926,000 as of its most recent SEC filing.

Other hedge funds have also recently made changes to their positions in the company. American Century Companies Inc. lifted its stake in shares of Lear by 23.6% during the 3rd quarter. American Century Companies Inc. now owns 1,569,341 shares of the auto parts company’s stock worth $157,891,000 after purchasing an additional 299,841 shares during the last quarter. Capital Management Corp VA purchased a new stake in shares of Lear during the 3rd quarter worth $2,295,000. Oldfield Partners LLP lifted its stake in shares of Lear by 5.5% during the 4th quarter. Oldfield Partners LLP now owns 644,286 shares of the auto parts company’s stock worth $73,835,000 after purchasing an additional 33,313 shares during the last quarter. Dynamic Technology Lab Private Ltd purchased a new stake in shares of Lear during the 3rd quarter worth $1,420,000. Finally, Mitsubishi UFJ Trust & Banking Corp lifted its stake in shares of Lear by 124.6% during the 3rd quarter. Mitsubishi UFJ Trust & Banking Corp now owns 54,741 shares of the auto parts company’s stock worth $5,507,000 after purchasing an additional 30,369 shares during the last quarter. 97.04% of the stock is currently owned by hedge funds and other institutional investors.

Insider Activity

In other news, SVP Nicholas Jon Roelli sold 2,336 shares of the firm’s stock in a transaction dated Friday, May 22nd. The stock was sold at an average price of $141.38, for a total value of $330,263.68. Following the completion of the transaction, the senior vice president directly owned 2,339 shares in the company, valued at $330,687.82. This trade represents a 49.97% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. 1.02% of the stock is currently owned by insiders.

Wall Street Analyst Weigh In

A number of equities research analysts recently weighed in on the company. Bank of America assumed coverage on Lear in a research note on Wednesday, March 4th. They set a “neutral” rating for the company. Morgan Stanley set a $130.00 price objective on Lear in a research note on Monday, May 4th. Deutsche Bank Aktiengesellschaft set a $133.00 price objective on Lear in a research note on Monday, May 4th. Royal Bank Of Canada increased their price target on Lear from $134.00 to $138.00 and gave the company a “sector perform” rating in a research note on Tuesday, May 5th. Finally, Wells Fargo & Company increased their price target on Lear from $126.00 to $133.00 and gave the company an “equal weight” rating in a research note on Monday, May 4th. One analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating and ten have assigned a Hold rating to the company’s stock. According to data from MarketBeat, the stock has an average rating of “Hold” and an average price target of $143.08.

Lear Trading Up 1.7%

Lear stock opened at $145.83 on Thursday. The stock has a 50-day moving average of $127.03 and a two-hundred day moving average of $122.04. The company has a debt-to-equity ratio of 0.51, a quick ratio of 1.05 and a current ratio of 1.33. Lear Corporation has a one year low of $86.14 and a one year high of $149.16. The stock has a market cap of $7.31 billion, a PE ratio of 14.58, a price-to-earnings-growth ratio of 0.73 and a beta of 1.21.

Lear (NYSE:LEA) last released its quarterly earnings results on Friday, May 1st. The auto parts company reported $3.87 EPS for the quarter, beating analysts’ consensus estimates of $3.51 by $0.36. Lear had a return on equity of 13.69% and a net margin of 2.25%.The company had revenue of $5.82 billion during the quarter, compared to analysts’ expectations of $5.84 billion. During the same period last year, the business posted $3.12 earnings per share. The firm’s revenue was up 4.7% compared to the same quarter last year. On average, research analysts anticipate that Lear Corporation will post 14.61 EPS for the current fiscal year.

Lear Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, June 23rd. Stockholders of record on Wednesday, June 3rd will be paid a $0.77 dividend. This represents a $3.08 annualized dividend and a dividend yield of 2.1%. The ex-dividend date is Wednesday, June 3rd. Lear’s dividend payout ratio (DPR) is presently 30.80%.

Key Stories Impacting Lear

Here are the key news stories impacting Lear this week:

• Positive Sentiment: Lear’s most recent quarterly results were better than expected, with EPS of $3.87 beating estimates and revenue rising 4.7% year over year. That reinforces confidence in the auto parts maker’s fundamentals and helps support the stock.
• Positive Sentiment: The company also recently announced a quarterly dividend of $0.77 per share, signaling ongoing cash generation and shareholder returns.
• Neutral Sentiment: TD Cowen upgraded Lear from hold to buy and raised its price target to $165, which may be adding to bullish sentiment.
• Neutral Sentiment: SVP Nicholas Jon Roelli sold 2,336 shares at an average price of $141.38, trimming his stake by about 50%. The sale is relatively small in the context of Lear’s market capitalization, so it may be seen as routine rather than a major warning sign. SEC filing
• Neutral Sentiment: Several other headlines in the feed were unrelated education and learning articles, and do not appear to have a meaningful impact on LEA shares.

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.