Lear (NYSE:LEA) Stock Gets Price Target Cut from Royal Bank Of Canada

Lear (NYSE:LEA) had its price objective lowered by stock analysts at Royal Bank Of Canada from $139.00 to $135.00 in a research report issued on Monday, Benzinga reports. The brokerage presently has a “sector perform” rating on the auto parts company’s stock. Royal Bank Of Canada‘s target price points to a potential upside of 9.10% from the company’s previous close.

Several other equities research analysts have also issued reports on LEA. BNP Paribas Exane lowered shares of Lear from an “outperform” rating to a “neutral” rating in a research note on Monday, August 3rd. Wall Street Zen cut shares of Lear from a “buy” rating to a “hold” rating in a research note on Sunday, October 25th. UBS Group cut their target price on shares of Lear from $141.00 to $132.00 and set a “neutral” rating for the company in a research report on Wednesday, October 7th. Weiss Ratings cut shares of Lear from a “buy (b-)” rating to a “hold (c+)” rating in a report on Wednesday, September 9th. Finally, The Goldman Sachs Group lowered their price objective on shares of Lear from $140.00 to $124.00 and set a “buy” rating on the stock in a research note on Tuesday, October 6th. One investment analyst has rated the stock with a Strong Buy rating, three have given a Buy rating and twelve have given a Hold rating to the stock. According to MarketBeat.com, the stock has an average rating of “Hold” and an average price target of $143.25.

Lear Stock Performance

Shares of NYSE LEA traded up $5.30 during midday trading on Monday, reaching $123.75. 111,890 shares of the company traded hands, compared to its average volume of 600,043. The company has a market cap of $6.10 billion, a price-to-earnings ratio of 10.78, a PEG ratio of 0.67 and a beta of 1.28. The company has a debt-to-equity ratio of 0.40, a current ratio of 1.18 and a quick ratio of 0.92. The stock has a 50-day moving average price of $122.17 and a 200 day moving average price of $128.37. Lear has a 52 week low of $99.00 and a 52 week high of $150.33.

Lear (NYSE:LEA) last issued its quarterly earnings results 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. The company had revenue of $5.77 billion during the quarter, compared to the consensus estimate of $5.81 billion. Lear had a net margin of 2.46% and a return on equity of 14.92%. Lear’s revenue was up 1.6% on a year-over-year basis. During the same period in the prior year, the company earned $2.79 EPS. Sell-side analysts anticipate that Lear will post 14.88 earnings per share for the current fiscal year.

Lear declared that its Board of Directors has approved a stock repurchase 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 purchase up to 25.7% of its shares through open market purchases. Share buyback plans are generally an indication that the company’s board believes its stock is undervalued.

Insider Transactions at Lear

In other news, Director Conrad L. Mallett, Jr. sold 1,646 shares of the stock in a transaction that occurred 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 transaction, the director owned 37 shares in the company, valued at approximately $4,489.95. This trade represents a 97.80% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. 1.02% of the stock is owned by corporate insiders.

Institutional Trading of Lear

Several hedge funds and other institutional investors have recently made changes to their positions in LEA. Dimensional Fund Advisors LP grew its position in Lear by 3.8% in the 1st 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 bought a new stake in shares of Lear in the second quarter valued at approximately $65,397,000. Sei Investments Co. raised its stake in shares of 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 during the period. Quantinno Capital Management LP increased 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 worth $18,302,000 after acquiring an additional 18,990 shares during the period. Finally, Diamond Hill Capital Management LLC Investment Advisor bought a new position in shares of Lear in the second quarter worth approximately $17,423,000. 97.04% of the stock is currently owned by institutional investors.

Trending Headlines about Lear

Here are the key news stories impacting Lear this week:

• Positive Sentiment: Lear reported year-over-year growth in third-quarter revenue, core operating earnings, net income and earnings per share. Adjusted EPS reportedly increased 33%, helped by cost controls and operational improvements despite lower global auto production. Lear Corporation third-quarter 2026 results
• Positive Sentiment: The company outlined plans to repurchase up to $1.5 billion of stock through 2029. Buybacks could support per-share earnings and signal management’s view that Lear shares are undervalued. Lear buyback and Orion automation plans
• Positive Sentiment: Lear is expanding its Orion automation initiative, which management expects to reduce conversion costs by approximately 10% to 15%. If achieved, the program could improve margins and strengthen the company’s competitive position over time. Lear Orion automation initiative
• Neutral Sentiment: Lear’s earnings beat and improved profitability are encouraging, but management’s outlook remains the key issue for investors because the business is closely tied to vehicle production and automaker demand. Lear third-quarter profit and sales
• Negative Sentiment: The stock has decreased after Lear’s revenue guidance disappointed investors. The weaker sales outlook overshadowed the earnings beat and raised concerns about softening auto production, customer demand and potential pressure on future growth. Lear shares and revenue outlook

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.