Lear (NYSE:LEA) Hits New 1-Year High After Better-Than-Expected Earnings

Shares of Lear Corporation (NYSE:LEA) hit a new 52-week high during mid-day trading on Wednesday after the company announced better than expected quarterly earnings. The stock traded as high as $131.00 and last traded at $130.7450, with a volume of 110550 shares. The stock had previously closed at $119.60.

The auto parts company reported $3.41 earnings per share for the quarter, topping the consensus estimate of $2.54 by $0.87. The company had revenue of $5.99 billion for the quarter, compared to analysts’ expectations of $5.78 billion. Lear had a return on equity of 13.44% and a net margin of 1.92%.The business’s quarterly revenue was up 4.8% compared to the same quarter last year. During the same period in the previous year, the business posted $2.94 earnings per share.

Lear Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Tuesday, December 30th. Stockholders of record on Wednesday, December 10th were issued a dividend of $0.77 per share. This represents a $3.08 dividend on an annualized basis and a dividend yield of 2.3%. The ex-dividend date was Wednesday, December 10th. Lear’s payout ratio is 37.65%.

Analyst Ratings Changes

LEA has been the subject of several analyst reports. Morgan Stanley reaffirmed an “equal weight” rating and set a $112.00 target price (down from $115.00) on shares of Lear in a research report on Monday, December 8th. Weiss Ratings restated a “hold (c)” rating on shares of Lear in a research report on Thursday, January 22nd. JPMorgan Chase & Co. upped their target price on Lear from $133.00 to $138.00 and gave the company an “overweight” rating in a report on Monday, November 3rd. Evercore ISI raised their price target on shares of Lear from $110.00 to $120.00 and gave the stock an “in-line” rating in a report on Monday, November 24th. Finally, The Goldman Sachs Group restated a “neutral” rating and issued a $121.00 price target on shares of Lear in a research report on Thursday, January 15th. Two research analysts have rated the stock with a Buy rating and nine have assigned a Hold rating to the company’s stock. According to MarketBeat.com, the company currently has an average rating of “Hold” and a consensus price target of $126.20.

Insider Activity

In other news, CFO Jason M. Cardew sold 5,000 shares of the firm’s stock in a transaction dated Thursday, December 18th. The stock was sold at an average price of $118.17, for a total value of $590,850.00. Following the completion of the sale, the chief financial officer directly owned 15,244 shares in the company, valued at $1,801,383.48. This trade represents a 24.70% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this link. 0.91% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Several hedge funds have recently modified their holdings of LEA. IFP Advisors Inc boosted its holdings in Lear by 1,384.2% during the 2nd quarter. IFP Advisors Inc now owns 282 shares of the auto parts company’s stock worth $27,000 after acquiring an additional 263 shares during the last quarter. WealthCollab LLC purchased a new stake in shares of Lear in the second quarter valued at about $28,000. Allworth Financial LP lifted its position in shares of Lear by 62.6% during the third quarter. Allworth Financial LP now owns 309 shares of the auto parts company’s stock valued at $31,000 after purchasing an additional 119 shares in the last quarter. Advisory Services Network LLC bought a new stake in Lear in the 3rd quarter worth about $33,000. Finally, Quent Capital LLC bought a new position in shares of Lear in the third quarter valued at approximately $38,000. Hedge funds and other institutional investors own 97.04% of the company’s stock.

Lear Trading Up 10.6%

The firm has a 50-day moving average price of $116.80 and a 200-day moving average price of $108.17. The company has a current ratio of 1.35, a quick ratio of 1.05 and a debt-to-equity ratio of 0.53. The stock has a market capitalization of $6.86 billion, a PE ratio of 16.16, a price-to-earnings-growth ratio of 1.36 and a beta of 1.30.

Lear Company Profile

Lear Corporation (NYSE: LEA) is a global supplier of automotive seating and electrical distribution systems. The company designs, engineers and manufactures complete seat systems, seat components and power solutions for major vehicle manufacturers. Its electrical business delivers modules and components for battery management, infotainment, body and safety electronics, as well as advanced connectivity and electrification solutions.

The seating division develops lightweight, ergonomic seat structures, trim and mechanisms that address comfort, safety and environmental targets.