Lear (NYSE:LEA) Shares Gap Up Following Strong Earnings

Lear Co. (NYSE:LEA)’s stock price gapped up prior to trading on Thursday following a stronger than expected earnings report. The stock had previously closed at $93.44, but opened at $98.23. Lear shares last traded at $98.28, with a volume of 100,832 shares traded.

The auto parts company reported $2.94 EPS for the quarter, beating analysts’ consensus estimates of $2.50 by $0.44. Lear had a net margin of 2.33% and a return on equity of 14.68%.

Lear Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Monday, December 30th. Stockholders of record on Wednesday, December 11th were paid a dividend of $0.77 per share. The ex-dividend date was Wednesday, December 11th. This represents a $3.08 annualized dividend and a dividend yield of 3.16%. Lear’s dividend payout ratio is currently 32.39%.

Analyst Upgrades and Downgrades

LEA has been the subject of a number of research analyst reports. Morgan Stanley reduced their price objective on shares of Lear from $145.00 to $135.00 and set an “overweight” rating for the company in a research report on Thursday, November 14th. TD Cowen dropped their price target on Lear from $142.00 to $125.00 and set a “buy” rating for the company in a report on Friday, October 25th. JPMorgan Chase & Co. decreased their price target on shares of Lear from $147.00 to $143.00 and set an “overweight” rating on the stock in a research note on Monday, January 27th. Bank of America reduced their price target on Lear from $180.00 to $170.00 and set a “buy” rating on the stock in a research report on Monday, October 14th. Finally, StockNews.com raised Lear from a “hold” rating to a “buy” rating in a research note on Thursday, December 19th. Seven analysts have rated the stock with a hold rating and six have assigned a buy rating to the company. Based on data from MarketBeat.com, Lear presently has an average rating of “Hold” and an average target price of $132.18.

Hedge Funds Weigh In On Lear

Several large investors have recently bought and sold shares of LEA. Barclays PLC increased its holdings in Lear by 9.8% in the third quarter. Barclays PLC now owns 135,049 shares of the auto parts company’s stock valued at $14,742,000 after purchasing an additional 12,094 shares during the period. Nordea Investment Management AB raised its position in shares of Lear by 16.9% during the fourth quarter. Nordea Investment Management AB now owns 39,465 shares of the auto parts company’s stock worth $3,759,000 after acquiring an additional 5,711 shares during the last quarter. Intech Investment Management LLC acquired a new position in shares of Lear in the third quarter worth approximately $1,946,000. Retirement Systems of Alabama boosted its holdings in Lear by 7.3% in the third quarter. Retirement Systems of Alabama now owns 144,282 shares of the auto parts company’s stock valued at $15,748,000 after acquiring an additional 9,774 shares during the last quarter. Finally, Victory Capital Management Inc. lifted its position in shares of Lear by 39.9% in the 3rd quarter. Victory Capital Management Inc. now owns 21,221 shares of the auto parts company’s stock worth $2,316,000 after purchasing an additional 6,055 shares during the period. 97.04% of the stock is currently owned by institutional investors.

Lear Stock Performance

The stock’s 50 day moving average price is $95.68 and its 200 day moving average price is $103.23. The company has a market capitalization of $5.30 billion, a P/E ratio of 10.27, a price-to-earnings-growth ratio of 0.61 and a beta of 1.42. The company has a debt-to-equity ratio of 0.57, a quick ratio of 1.03 and a current ratio of 1.33.

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 in North America, Europe, Africa, Asia, and South America. Its Seating segment offers seat systems, seat subsystems, keyseat components, seat trim covers, seat mechanisms, seat foams, and headrests, as well as surface materials, such as leather and fabric for automobiles and light trucks, compact cars, pick-up trucks, and sport utility vehicles.