Stock Traders Purchase Large Volume of Lear Put Options (NYSE:LEA)

Lear Co. (NYSE:LEA) was the recipient of some unusual options trading activity on Thursday. Traders purchased 1,041 put options on the stock. This is an increase of 1,019% compared to the typical daily volume of 93 put options.

Hedge funds have recently added to or reduced their stakes in the business. Nissay Asset Management Corp Japan ADV grew its position in shares of Lear by 1.0% during the first quarter. Nissay Asset Management Corp Japan ADV now owns 7,260 shares of the auto parts company’s stock worth $985,000 after acquiring an additional 72 shares during the last quarter. World Asset Management Inc grew its position in shares of Lear by 3.1% during the second quarter. World Asset Management Inc now owns 3,037 shares of the auto parts company’s stock worth $423,000 after acquiring an additional 91 shares during the last quarter. Bessemer Group Inc. grew its position in shares of Lear by 4.5% during the second quarter. Bessemer Group Inc. now owns 2,195 shares of the auto parts company’s stock worth $306,000 after acquiring an additional 94 shares during the last quarter. HighTower Advisors LLC grew its position in shares of Lear by 1.0% during the second quarter. HighTower Advisors LLC now owns 9,159 shares of the auto parts company’s stock worth $1,277,000 after acquiring an additional 95 shares during the last quarter. Finally, Skandinaviska Enskilda Banken AB publ grew its position in shares of Lear by 1.2% during the second quarter. Skandinaviska Enskilda Banken AB publ now owns 8,759 shares of the auto parts company’s stock worth $1,220,000 after acquiring an additional 100 shares during the last quarter. Hedge funds and other institutional investors own 89.93% of the company’s stock.

LEA stock traded up $0.29 during trading on Friday, hitting $126.34. 555,235 shares of the company’s stock traded hands, compared to its average volume of 665,272. The company has a quick ratio of 1.09, a current ratio of 1.34 and a debt-to-equity ratio of 0.52. Lear has a 52 week low of $105.10 and a 52 week high of $167.86. The stock has a fifty day moving average price of $116.49 and a two-hundred day moving average price of $134.01. The stock has a market capitalization of $7.70 billion, a price-to-earnings ratio of 6.93, a price-to-earnings-growth ratio of 3.45 and a beta of 1.51.

Lear (NYSE:LEA) last released its earnings results on Friday, July 26th. The auto parts company reported $3.78 earnings per share for the quarter, missing the consensus estimate of $3.82 by ($0.04). Lear had a net margin of 4.38% and a return on equity of 23.18%. The business had revenue of $5.01 billion for the quarter, compared to the consensus estimate of $5.03 billion. During the same quarter in the previous year, the firm earned $4.95 EPS. The firm’s revenue for the quarter was down 10.3% on a year-over-year basis. As a group, equities research analysts expect that Lear will post 14.98 EPS for the current fiscal year.

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, September 17th. Shareholders of record on Thursday, August 29th will be paid a dividend of $0.75 per share. The ex-dividend date is Wednesday, August 28th. This represents a $3.00 annualized dividend and a yield of 2.37%. Lear’s payout ratio is 16.47%.

Several analysts recently issued reports on LEA shares. Credit Suisse Group cut their price target on shares of Lear from $155.00 to $130.00 and set a “neutral” rating on the stock in a report on Monday, July 29th. Longbow Research reaffirmed a “buy” rating and issued a $190.00 price target on shares of Lear in a report on Sunday, June 30th. KeyCorp cut their price target on shares of Lear from $185.00 to $170.00 and set an “overweight” rating on the stock in a report on Friday, July 12th. They noted that the move was a valuation call. UBS Group cut shares of Lear from a “buy” rating to a “neutral” rating and cut their price target for the company from $158.00 to $135.00 in a report on Thursday. Finally, ValuEngine cut shares of Lear from a “sell” rating to a “strong sell” rating in a report on Wednesday, July 17th. One equities research analyst has rated the stock with a sell rating, nine have assigned a hold rating and eight have given a buy rating to the company’s stock. The company presently has a consensus rating of “Hold” and a consensus price target of $155.60.

About Lear

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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