Lear Corporation $LEA Stock: GRIMES & Co WEALTH MANAGEMENT LLC Lowers Position

GRIMES & Co WEALTH MANAGEMENT LLC decreased its holdings in Lear Corporation (NYSE:LEA) by 68.0% in the third quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The firm owned 3,528 shares of the auto parts company’s stock after selling 7,494 shares during the period. GRIMES & Co WEALTH MANAGEMENT LLC’s holdings in Lear were worth $416,000 at the end of the most recent reporting period.

Several other institutional investors have also recently made changes to their positions in LEA. VIRGINIA RETIREMENT SYSTEMS ET Al purchased a new position in Lear in the 2nd quarter worth approximately $4,029,000. Engineers Gate Manager LP boosted its stake in Lear by 145.6% in the 2nd quarter. Engineers Gate Manager LP now owns 126,588 shares of the auto parts company’s stock worth $16,970,000 after purchasing an additional 75,043 shares during the period. Great Lakes Advisors LLC bought a new position in Lear in the 2nd quarter worth approximately $2,997,000. Public Employees Retirement System of Ohio purchased a new stake in Lear during the 2nd quarter valued at approximately $3,988,000. Finally, Fifth Third Bancorp grew its holdings in Lear by 5,987.3% during the 1st quarter. Fifth Third Bancorp now owns 23,436 shares of the auto parts company’s stock valued at $2,838,000 after buying an additional 23,051 shares in the last quarter. Hedge funds and other institutional investors own 97.04% of the company’s stock.

Wall Street Analyst Weigh In

LEA has been the topic of several recent analyst reports. BNP Paribas Exane cut shares of Lear from an “outperform” rating to a “neutral” rating in a research report on Monday, August 3rd. Wells Fargo & Company increased their price objective on shares of Lear from $137.00 to $138.00 and gave the company an “equal weight” rating in a report on Monday, August 3rd. Wall Street Zen lowered Lear from a “buy” rating to a “hold” rating in a research report on Sunday, October 25th. UBS Group reduced their target price on Lear from $141.00 to $132.00 and set a “neutral” rating on the stock in a report on Wednesday, October 7th. Finally, Deutsche Bank Aktiengesellschaft set a $131.00 target price on Lear in a research report on Monday, August 3rd. One investment analyst has rated the stock with a Strong Buy rating, three have given a Buy rating and twelve have issued a Hold rating to the company. According to MarketBeat, the stock presently has an average rating of “Hold” and an average price target of $143.25.

Lear Trading Up 1.6%

LEA stock opened at $118.58 on Thursday. The firm has a fifty day moving average price of $121.83 and a 200 day moving average price of $128.28. Lear Corporation has a fifty-two week low of $99.00 and a fifty-two week high of $150.33. The firm has a market cap of $5.71 billion, a PE ratio of 10.36, a price-to-earnings-growth ratio of 0.66 and a beta of 1.28. The company has a debt-to-equity ratio of 0.40, a quick ratio of 0.92 and a current ratio of 1.18.

Lear (NYSE:LEA) last released its quarterly earnings results on Friday, October 30th. The auto parts company reported $3.71 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $3.32 by $0.39. Lear had a net margin of 2.46% and a return on equity of 14.92%. The company had revenue of $5.77 billion for the quarter, compared to the consensus estimate of $5.81 billion. During the same quarter in the prior year, the firm earned $2.79 earnings per share. Lear’s revenue was up 1.6% on a year-over-year basis. Sell-side analysts anticipate that Lear Corporation will post 15.01 earnings per share for the current fiscal year.

Lear Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Tuesday, September 22nd. Investors of record on Wednesday, September 2nd were given a $0.77 dividend. The ex-dividend date was Wednesday, September 2nd. This represents a $3.08 annualized dividend and a yield of 2.6%. Lear’s dividend payout ratio (DPR) is currently 26.90%.

Lear announced that its board has initiated a stock repurchase plan on Thursday, September 24th that authorizes the company to repurchase $1.50 billion in shares. This repurchase authorization authorizes the auto parts company to repurchase up to 25.7% of its stock through open market purchases. Share repurchase plans are usually a sign that the company’s management believes its stock is undervalued.

Key Lear News

Here are the key news stories impacting Lear this week:

• Positive Sentiment: Lear shares moved above their 50-day moving average after an analyst downgrade, a potentially supportive technical signal. Article: Lear Stock Price Breaks Above Fifty Day Moving Average After Analyst Downgrade
• Neutral Sentiment: CFO Jason Cardew sold 5,000 shares for about $589,000 and retained 8,241 shares. The filing does not give a reason for the sale, so it is not necessarily a signal about the company’s outlook. SEC insider transaction filing
• Negative Sentiment: Royal Bank of Canada lowered its expectations for Lear, citing a near-term China overhang. Concern about demand in that market could weigh on the company’s outlook. Article: Lear Faces Near Term China Overhang, RBC Says

Insider Buying and Selling

In related news, CFO Jason Cardew sold 5,000 shares of Lear stock in a transaction dated Tuesday, November 3rd. The stock was sold at an average price of $117.75, for a total value of $588,750.00. Following the completion of the transaction, the chief financial officer owned 8,241 shares in the company, valued at approximately $970,377.75. This trade represents a 37.76% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Corporate insiders own 1.02% of the company’s stock.

Lear Company Profile

Lear Corporation is a global automotive technology company that designs and manufactures products used in passenger vehicles and commercial vehicles. Its operations are organized primarily around two areas: seating and e-systems. Lear supplies complete vehicle seating systems, including seats, structures, mechanisms, foam, covers and related components, as well as electrical distribution systems and other technologies that support vehicle power management and connectivity.

The company serves automotive manufacturers and their vehicle programs in major markets across North America, Europe, Asia and other regions.