Lear (NYSE:LEA) Stock Crosses Above Fifty Day Moving Average Following Analyst Downgrade

Shares of Lear Corporation (NYSE:LEA) passed above its fifty day moving average during trading on Monday after Wall Street Zen upgraded the stock from a hold rating to a buy rating. The stock has a fifty day moving average of $122.05 and traded as high as $124.30. Lear shares last traded at $122.1390, with a volume of 737,286 shares changing hands.

A number of other analysts have also recently issued reports on the company. Deutsche Bank Aktiengesellschaft set a $131.00 target price on Lear in a research report on Monday, August 3rd. The Goldman Sachs Group lowered their price objective on Lear from $140.00 to $124.00 and set a “buy” rating on the stock in a report on Tuesday, October 6th. JPMorgan Chase & Co. cut shares of Lear from an “overweight” rating to a “neutral” rating and lowered their price target for the stock from $175.00 to $150.00 in a research note on Tuesday, September 15th. Weiss Ratings cut Lear from a “buy (b-)” rating to a “hold (c+)” rating in a report on Wednesday, September 9th. Finally, UBS Group reduced their price target on shares of Lear from $141.00 to $132.00 and set a “neutral” rating on the stock in a report on Wednesday, October 7th. One investment analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating and twelve have given a Hold rating to the company’s stock. According to data from MarketBeat, the stock currently has an average rating of “Hold” and a consensus target price of $143.25.

Insider Activity

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

Key Headlines Impacting Lear

Here are the key news stories impacting Lear this week:

• Positive Sentiment: Better-than-expected profitability: Lear reported third-quarter adjusted EPS of $3.71, exceeding the $3.32 consensus estimate, while revenue increased 1.6% year over year. Management highlighted growth in revenue, core operating earnings, net income and EPS, supporting the view that the auto supplier is managing a challenging market relatively well. Lear Corp. Earnings Call Highlights Resilient Growth
• Positive Sentiment: Shareholder returns and efficiency initiatives: Lear outlined plans for up to $1.5 billion in share repurchases through 2029. Its Orion automation program is expected to reduce conversion costs by approximately 10% to 15%, which could support margins and long-term earnings growth. Lear Buyback and Orion Automation Plans
• Neutral Sentiment: International revenue remains an important variable: Coverage examining Lear’s international revenue trends indicates that regional performance and global vehicle production will remain key factors in Wall Street’s forecasts. Lear International Revenue Trends
• Neutral Sentiment: Unrelated Learjet crash coverage: Reports about a deadly Florida Learjet crash concern an aircraft brand and are not related to Lear Corporation’s automotive-parts business. The coverage should not have a fundamental effect on LEA.
• Negative Sentiment: Revenue outlook and analyst caution: Lear missed quarterly revenue expectations and reduced its fiscal 2026 revenue guidance. Analysts subsequently lowered forecasts and price targets; RBC cut its target from $139 to $135 while maintaining a “sector perform” rating. Lear Analysts Lower Forecasts

Institutional Investors Weigh In On Lear

Several large investors have recently made changes to their positions in the business. Dimensional Fund Advisors LP lifted its position in shares of Lear by 3.8% during the first quarter. Dimensional Fund Advisors LP now owns 2,943,480 shares of the auto parts company’s stock worth $356,380,000 after purchasing an additional 107,678 shares in the last quarter. Bank of New York Mellon Corp purchased a new position in shares of Lear in the second quarter valued at $65,397,000. Sei Investments Co. grew its holdings in Lear by 28.8% during the 1st quarter. Sei Investments Co. now owns 176,084 shares of the auto parts company’s stock valued at $21,320,000 after purchasing an additional 39,422 shares in the last quarter. Quantinno Capital Management LP grew its holdings in Lear by 14.4% during the 1st quarter. Quantinno Capital Management LP now owns 151,156 shares of the auto parts company’s stock valued at $18,302,000 after purchasing an additional 18,990 shares in the last quarter. Finally, Diamond Hill Capital Management LLC Investment Advisor acquired a new stake in Lear during the 2nd quarter valued at $17,423,000. Institutional investors and hedge funds own 97.04% of the company’s stock.

Lear Price Performance

The stock has a market cap of $6.02 billion, a PE ratio of 10.67, a P/E/G ratio of 0.66 and a beta of 1.29. The company has a current ratio of 1.31, a quick ratio of 1.04 and a debt-to-equity ratio of 0.51. The company’s 50 day moving average is $122.05 and its 200-day moving average is $128.35.

Lear (NYSE:LEA) last issued its quarterly earnings data on Friday, October 30th. The auto parts company reported $3.71 earnings per share for the quarter, beating analysts’ consensus estimates of $3.32 by $0.39. Lear had a return on equity of 14.18% and a net margin of 2.35%. The firm had revenue of $5.77 billion during the quarter, compared to analyst estimates of $5.81 billion. During the same quarter last year, the firm earned $2.79 EPS. Lear’s quarterly revenue was up 1.6% on a year-over-year basis. As a group, sell-side analysts predict that Lear Corporation will post 14.88 earnings per share for the current year.

Lear Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Tuesday, September 22nd. Stockholders of record on Wednesday, September 2nd were issued a $0.77 dividend. The ex-dividend date of this dividend was Wednesday, September 2nd. This represents a $3.08 annualized dividend and a dividend yield of 2.5%. Lear’s payout ratio is 26.90%.

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

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.