Watershed Asset Management L.L.C. Makes New $443,000 Investment in Lear Corporation $LEA

Watershed Asset Management L.L.C. acquired a new position in Lear Corporation (NYSE:LEA) during the first quarter, according to its most recent filing with the SEC. The firm acquired 3,657 shares of the auto parts company’s stock, valued at approximately $443,000.

Several other hedge funds have also recently made changes to their positions in LEA. M&T Bank Corp lifted its stake in 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 acquiring an additional 949,569 shares during the period. Norges Bank purchased a new position in Lear during the 4th quarter valued at $82,016,000. Balyasny Asset Management L.P. bought a new position in Lear in the 2nd quarter worth $39,656,000. Caisse de depot et placement du Quebec bought a new position in Lear in the 3rd quarter worth $40,984,000. Finally, AQR Capital Management LLC lifted its position in shares of Lear by 34.1% in the 4th quarter. AQR Capital Management LLC now owns 789,745 shares of the auto parts company’s stock worth $90,505,000 after purchasing an additional 200,617 shares during the period. 97.04% of the stock is owned by hedge funds and other institutional investors.

Insiders Place Their Bets

In related news, Director Conrad L. Mallett, Jr. sold 190 shares of the stock in a transaction that occurred on Wednesday, June 10th. The shares were sold at an average price of $141.34, for a total transaction of $26,854.60. Following the transaction, the director owned 1,683 shares in the company, valued at $237,875.22. This represents a 10.14% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, CFO Jason M. Cardew sold 5,000 shares of the stock in a transaction on Tuesday, June 2nd. The shares were sold at an average price of $147.50, for a total value of $737,500.00. Following the transaction, the chief financial officer directly owned 13,241 shares in the company, valued at $1,953,047.50. The trade was a 27.41% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last quarter, insiders have sold 62,026 shares of company stock valued at $8,498,248. 1.02% of the stock is currently owned by company insiders.

Key Stories Impacting Lear

Here are the key news stories impacting Lear this week:

• Positive Sentiment: Zacks highlighted Lear as a “fast-paced momentum at a bargain” stock, suggesting the company has recent price strength while still looking attractively valued. Article Title
• Positive Sentiment: Seeking Alpha published a bullish take, “Lear Is In High Gear,” which adds to the view that investors are warming to the auto supplier’s fundamentals and momentum. Article Title
• Positive Sentiment: Another recent article framed Lear as a top growth stock for the long term, reinforcing a constructive investor outlook on LEA. Article Title
• Neutral Sentiment: Several other items in the feed were unrelated to Lear Corporation or its business and are unlikely to affect the stock.

Analyst Upgrades and Downgrades

LEA has been the topic of a number of research reports. Barclays lifted their target price on shares of Lear from $150.00 to $155.00 and gave the company an “equal weight” rating in a research note on Thursday, July 9th. Weiss Ratings upgraded shares of Lear from a “hold (c+)” rating to a “buy (b-)” rating in a report on Tuesday, June 23rd. Morgan Stanley set a $130.00 price objective on Lear in a research report on Monday, May 4th. TD Cowen upgraded Lear from a “hold” rating to a “buy” rating and upped their target price for the stock from $138.00 to $165.00 in a report on Tuesday, May 26th. Finally, Deutsche Bank Aktiengesellschaft set a $133.00 target price on Lear in a research report on Monday, May 4th. One equities research analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating and nine have issued a Hold rating to the company’s stock. According to MarketBeat.com, the stock has a consensus rating of “Hold” and an average price target of $144.62.

Lear Stock Down 1.4%

Shares of Lear stock opened at $141.61 on Friday. Lear Corporation has a 1 year low of $91.67 and a 1 year high of $150.33. The firm has a market cap of $7.09 billion, a price-to-earnings ratio of 14.16, a PEG ratio of 0.73 and a beta of 1.25. The company has a 50-day moving average of $138.51 and a 200 day moving average of $129.48. The company has a debt-to-equity ratio of 0.51, a current ratio of 1.33 and a quick ratio of 1.05.

Lear (NYSE:LEA) last posted its quarterly earnings data on Friday, May 1st. The auto parts company reported $3.87 EPS for the quarter, topping the consensus estimate of $3.51 by $0.36. Lear had a net margin of 2.25% and a return on equity of 13.69%. The business had revenue of $5.82 billion for the quarter, compared to analyst estimates of $5.84 billion. During the same quarter in the previous year, the firm posted $3.12 earnings per share. Lear’s quarterly revenue was up 4.7% on a year-over-year basis. As a group, sell-side analysts anticipate that Lear Corporation will post 14.81 earnings per share for the current fiscal year.

Lear Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Tuesday, June 23rd. Investors of record on Wednesday, June 3rd were given a $0.77 dividend. The ex-dividend date of this dividend was Wednesday, June 3rd. This represents a $3.08 annualized dividend and a yield of 2.2%. Lear’s dividend payout ratio is 30.80%.

Lear 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.