Stock Buyback Plan Approved by Lear (NYSE:LEA) Board

Lear (NYSE:LEA) declared that its Board of Directors has approved a share buyback plan on Thursday, September 24th, RTT News reports. The company plans to repurchase $1.50 billion in outstanding shares. This repurchase authorization authorizes the auto parts company to reacquire up to 25.7% of its stock through open market purchases. Stock repurchase plans are often an indication that the company’s board believes its shares are undervalued.

Lear Price Performance

Lear stock traded up $4.58 during trading hours on Friday, reaching $122.83. 622,503 shares of the stock were exchanged, compared to its average volume of 644,063. The company has a current ratio of 1.31, a quick ratio of 1.04 and a debt-to-equity ratio of 0.51. Lear has a twelve month low of $96.04 and a twelve month high of $150.33. The company has a market cap of $6.06 billion, a P/E ratio of 11.45, a price-to-earnings-growth ratio of 0.72 and a beta of 1.26. The stock has a 50 day moving average of $128.52 and a two-hundred day moving average of $130.24.

Lear (NYSE:LEA) last announced its quarterly earnings data on Friday, July 31st. The auto parts company reported $4.28 EPS for the quarter, beating the consensus estimate of $3.98 by $0.30. Lear had a net margin of 2.35% and a return on equity of 14.18%. The business had revenue of $6.21 billion during the quarter, compared to the consensus estimate of $6.15 billion. During the same period in the previous year, the business earned $3.06 earnings per share. The company’s revenue was up 3.0% on a year-over-year basis. Equities analysts expect that Lear will post 14.86 EPS for the current fiscal year.

Lear Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Tuesday, September 22nd. Stockholders of record on Wednesday, September 2nd were paid a $0.77 dividend. This represents a $3.08 dividend on an annualized basis and a dividend yield of 2.5%. The ex-dividend date was Wednesday, September 2nd. Lear’s dividend payout ratio (DPR) is presently 28.70%.

Analysts Set New Price Targets

Several equities research analysts have issued reports on LEA shares. BNP Paribas Exane downgraded shares of Lear from an “outperform” rating to a “neutral” rating in a research report on Monday, August 3rd. Weiss Ratings downgraded Lear from a “buy (b-)” rating to a “hold (c+)” rating in a report on Wednesday, September 9th. Royal Bank Of Canada boosted their target price on shares of Lear from $138.00 to $143.00 and gave the company a “sector perform” rating in a research report on Monday, July 13th. Barclays upped their price target 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. Finally, The Goldman Sachs Group reiterated a “neutral” rating and issued a $140.00 price objective on shares of Lear in a research note on Saturday, August 1st. 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. Based on data from MarketBeat.com, the company currently has an average rating of “Hold” and an average price target of $146.33.

Lear News Roundup

Here are the key news stories impacting Lear this week:

• Positive Sentiment: Lear’s board increased its share-buyback authorization to $1.5 billion, enough to repurchase up to approximately 25.7% of outstanding shares through open-market purchases. The authorization was also extended through December 31, 2029, giving the company substantial flexibility to return capital to shareholders. Lear increases share repurchase authorization to $1.5 billion and extends authorization

Insider Buying and Selling at Lear

In related news, Director Conrad L. Mallett, Jr. sold 1,646 shares of the firm’s stock in a transaction on Thursday, August 6th. The stock was sold at an average price of $121.35, for a total transaction of $199,742.10. Following the sale, the director owned 37 shares of the company’s stock, valued at $4,489.95. This trade represents a 97.80% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. 1.02% of the stock is currently owned by company insiders.

About Lear

Lear Corporation is a global automotive technology company that designs and manufactures systems and components used in passenger vehicles. Its business is 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 help manage power, data and connectivity within vehicles.

The company’s E-Systems offerings include low- and high-voltage wiring systems, connection systems, battery and power-management solutions, electronic control modules, displays and software-enabled technologies.