Engineers Gate Manager LP Increases Holdings in Lear Corporation $LEA

Engineers Gate Manager LP grew its stake in Lear Corporation (NYSE:LEA) by 145.6% in the 2nd quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The fund owned 126,588 shares of the auto parts company’s stock after purchasing an additional 75,043 shares during the period. Engineers Gate Manager LP’s holdings in Lear were worth $16,970,000 at the end of the most recent reporting period.

Other large investors have also recently modified their holdings of the company. California State Teachers Retirement System raised its holdings in Lear by 12,951.3% during the 2nd quarter. California State Teachers Retirement System now owns 7,843,046 shares of the auto parts company’s stock valued at $1,051,439,000 after buying an additional 7,782,952 shares during the period. Norges Bank bought a new position in Lear during the fourth quarter valued at $82,016,000. Bank of New York Mellon Corp bought a new position in Lear during the second quarter valued at $65,397,000. Balyasny Asset Management L.P. purchased a new stake in shares of Lear in the second quarter valued at $39,656,000. Finally, Caisse de depot et placement du Quebec bought a new stake in shares of Lear in the 3rd quarter worth about $40,984,000. Institutional investors own 97.04% of the company’s stock.

Key Headlines Impacting Lear

Here are the key news stories impacting Lear this week:

• Positive Sentiment: Zacks identifies Lear as a highly ranked growth stock. The article highlights Zacks’ Style Scores as a screening tool and presents Lear as an attractive candidate for growth-oriented investors. This could support sentiment, although the report does not introduce new financial results or raise the company’s guidance. Lear is a Top-Ranked Growth Stock: Should You Buy?
• Neutral Sentiment: Lear has recently reported stronger-than-expected operating results. The company’s latest quarterly report showed earnings of $4.28 per share versus a $3.98 consensus estimate, revenue of $6.21 billion, and 3% year-over-year revenue growth. Those results provide a fundamental cushion, but they were reported previously and are unlikely to explain the latest trading activity.
• Negative Sentiment: Potentially higher interest rates could pressure auto suppliers. Commentary warning that the Federal Reserve could raise rates amid an energy shock raises broader risks for economically sensitive industries. Higher borrowing costs and weaker vehicle demand could affect automakers and suppliers such as Lear, though the article does not discuss Lear specifically. Fed rate and oil shock analysis

Lear Trading Down 1.5%

Shares of NYSE LEA opened at $126.92 on Thursday. Lear Corporation has a twelve month low of $96.04 and a twelve month high of $150.33. The firm has a market cap of $6.26 billion, a PE ratio of 11.83, a price-to-earnings-growth ratio of 0.79 and a beta of 1.26. The business has a fifty day simple moving average of $131.31 and a two-hundred day simple moving average of $130.66. The company has a quick ratio of 1.04, a current ratio of 1.31 and a debt-to-equity ratio of 0.51.

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

Lear Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Tuesday, September 22nd. Shareholders of record on Wednesday, September 2nd will be given a dividend of $0.77 per share. This represents a $3.08 annualized dividend and a dividend yield of 2.4%. The ex-dividend date of this dividend is Wednesday, September 2nd. Lear’s dividend payout ratio is presently 28.70%.

Insider Transactions at Lear

In related news, CEO Raymond E. Scott sold 50,000 shares of the stock in a transaction that occurred on Wednesday, June 24th. The shares were sold at an average price of $135.37, for a total transaction of $6,768,500.00. Following the completion of the sale, the chief executive officer owned 49,789 shares of the company’s stock, valued at $6,739,936.93. This represents a 50.11% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, Director Conrad Mallett, Jr. sold 1,646 shares of the firm’s stock in a transaction that occurred on Thursday, August 6th. The shares were sold at an average price of $121.35, for a total transaction of $199,742.10. Following the completion of the sale, the director owned 37 shares of the company’s stock, valued at approximately $4,489.95. This trade represents a 97.80% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 1.02% of the stock is currently owned by company insiders.

Wall Street Analysts Forecast Growth

LEA has been the topic of a number of recent analyst reports. The Goldman Sachs Group reissued a “neutral” rating and issued a $140.00 price objective on shares of Lear in a research report on Saturday, August 1st. Deutsche Bank Aktiengesellschaft set a $131.00 target price on Lear in a research note on Monday, August 3rd. Weiss Ratings upgraded Lear from a “hold (c+)” rating to a “buy (b-)” rating in a report on Tuesday, August 25th. Barclays raised their price target on Lear from $150.00 to $155.00 and gave the stock an “equal weight” rating in a research note on Thursday, July 9th. Finally, BNP Paribas Exane cut Lear from an “outperform” rating to a “neutral” rating in a report on Monday, August 3rd. One analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating and ten have assigned a Hold rating to the company’s stock. According to data from MarketBeat, the stock currently has a consensus rating of “Hold” and a consensus price target of $147.08.

About Lear

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.