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

by · The Markets Daily

Lear (NYSE:LEA – Get Free Report) had its price target dropped by research analysts at Royal Bank Of Canada from $143.00 to $139.00 in a research note issued to investors on Monday, MarketBeat.com reports. The firm currently has a “sector perform” rating on the auto parts company’s stock. Royal Bank Of Canada’s price objective would indicate a potential upside of 16.21% from the stock’s current price.

LEA has been the subject of several other research reports. Weiss Ratings cut Lear from a “buy (b-)” rating to a “hold (c+)” rating in a report on Wednesday, September 9th. Deutsche Bank Aktiengesellschaft set a $131.00 price objective on Lear in a research note on Monday, August 3rd. Wells Fargo & Company boosted their price objective on Lear from $137.00 to $138.00 and gave the stock an “equal weight” rating in a research note on Monday, August 3rd. The Goldman Sachs Group dropped their target price on Lear from $140.00 to $124.00 and set a “buy” rating for the company in a report on Tuesday, October 6th. Finally, JPMorgan Chase & Co. reaffirmed a “neutral” rating and issued a $150.00 target price (down from $175.00) on shares of Lear in a research note on Tuesday, September 15th. One analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating and twelve have assigned a Hold rating to the company’s stock. According to MarketBeat.com, the stock presently has a consensus rating of “Hold” and an average price target of $143.58.

Read Our Latest Report on Lear

Lear Stock Performance

NYSE LEA opened at $119.61 on Monday. The company has a debt-to-equity ratio of 0.51, a current ratio of 1.31 and a quick ratio of 1.04. The stock’s 50 day simple moving average is $123.61 and its 200-day simple moving average is $130.51. The company has a market cap of $5.90 billion, a PE ratio of 11.15, a price-to-earnings-growth ratio of 0.72 and a beta of 1.29. Lear has a 1-year low of $96.04 and a 1-year high of $150.33.

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

Lear announced that its Board of Directors has initiated a stock buyback program on Thursday, September 24th that allows the company to buy back $1.50 billion in outstanding shares. This buyback authorization allows the auto parts company to repurchase up to 25.7% of its shares through open market purchases. Share buyback programs are generally a sign that the company’s board believes its shares are undervalued.

Insider Activity at Lear

In related news, Director Conrad L. Mallett, Jr. sold 1,646 shares of Lear stock in a transaction that occurred on Thursday, August 6th. The shares were sold at an average price of $121.35, for a total value of $199,742.10. Following the completion of the transaction, the director owned 37 shares in the company, valued at approximately $4,489.95. The trade was a 97.80% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Insiders own 1.02% of the company’s stock.

Institutional Investors Weigh In On Lear

A number of hedge funds have recently added to or reduced their stakes in LEA. IFP Advisors Inc grew its stake in shares of Lear by 14.3% in the second quarter. IFP Advisors Inc now owns 624 shares of the auto parts company’s stock worth $84,000 after purchasing an additional 78 shares in the last quarter. Altshuler Shaham Ltd raised its stake in shares of Lear by 36.5% during the first quarter. Altshuler Shaham Ltd now owns 303 shares of the auto parts company’s stock valued at $37,000 after purchasing an additional 81 shares in the last quarter. Versant Capital Management Inc raised its stake in shares of Lear by 3.8% during the second quarter. Versant Capital Management Inc now owns 2,260 shares of the auto parts company’s stock valued at $303,000 after purchasing an additional 82 shares in the last quarter. Waterfront Wealth Inc. raised its stake in shares of Lear by 0.5% during the first quarter. Waterfront Wealth Inc. now owns 17,404 shares of the auto parts company’s stock valued at $2,107,000 after purchasing an additional 89 shares in the last quarter. Finally, Parkside Financial Bank & Trust lifted its holdings in Lear by 15.6% in the second quarter. Parkside Financial Bank & Trust now owns 844 shares of the auto parts company’s stock worth $113,000 after purchasing an additional 114 shares during the period. 97.04% of the stock is currently owned by institutional investors and hedge funds.

More Lear News

Here are the key news stories impacting Lear this week:

  • Neutral Sentiment: RBC lowered its price target for Lear from $143 to $139 while maintaining a “Sector Perform” rating. The revised target still implies roughly 16% upside from the referenced share price, suggesting the bank sees potential value but does not expect significant near-term outperformance versus the broader automotive sector. RBC Lowers Price Target on Lear to $139 From $143, Keeps Sector Perform Rating
  • Negative Sentiment: The price-target reduction represents a more conservative outlook for Lear’s valuation, potentially reflecting concerns about auto-sector demand, supplier profitability, or execution. However, the unchanged rating limits the negative signal.

About Lear

(Get Free Report)

Lear Corporation (NYSE: LEA) is a global automotive technology supplier that designs and manufactures products used by vehicle manufacturers worldwide. The company’s principal business areas are seating systems and e-systems, which support the functionality, comfort, safety and connectivity of modern vehicles.

Lear’s seating business provides complete seating systems and related components, including seat structures, mechanisms, foam, trim, covers and comfort technologies. Its e-systems business develops electrical distribution systems, connection systems, electronic components and software-enabled technologies that help manage power, data and connectivity within vehicles.

Founded in 1917 and headquartered in Southfield, Michigan, Lear serves automotive manufacturers through operations and facilities across major vehicle-producing regions, including North America, Europe and Asia.

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