Lear (NYSE:LEA) Stock Rating Lowered by Wall Street Zen

Lear (NYSE:LEA) was downgraded by equities research analysts at Wall Street Zen from a “strong-buy” rating to a “buy” rating in a research report issued on Saturday.

A number of other research analysts also recently commented on LEA. Weiss Ratings raised shares of Lear from a “hold (c+)” rating to a “buy (b-)” rating in a research report on Tuesday, June 23rd. Deutsche Bank Aktiengesellschaft set a $133.00 price target on shares of Lear in a research report on Monday, May 4th. Barclays increased their price objective on shares of Lear from $150.00 to $155.00 and gave the company an “equal weight” rating in a research note on Thursday, July 9th. Morgan Stanley set a $130.00 price objective on shares of Lear in a research note on Monday, May 4th. Finally, The Goldman Sachs Group reissued a “neutral” rating and issued a $140.00 price objective on shares of Lear in a research note on Saturday. One research analyst has rated the stock with a Strong Buy rating, five have given a Buy rating and nine have given a Hold rating to the stock. Based on data from MarketBeat, the stock presently has an average rating of “Hold” and a consensus target price of $145.31.

Lear Price Performance

LEA opened at $130.63 on Friday. The company has a market capitalization of $6.54 billion, a price-to-earnings ratio of 12.17, a PEG ratio of 0.63 and a beta of 1.25. The company has a current ratio of 1.31, a quick ratio of 1.04 and a debt-to-equity ratio of 0.51. Lear has a 12-month low of $91.67 and a 12-month high of $150.33. The business’s fifty day simple moving average is $140.07 and its 200-day simple moving average is $131.16.

Lear (NYSE:LEA) last released its quarterly earnings data on Friday, July 31st. The auto parts company reported $4.28 earnings per share for the quarter, beating 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 the consensus estimate of $6.15 billion. During the same period in the previous year, the company posted $3.06 earnings per share. The firm’s quarterly revenue was up 3.0% on a year-over-year basis. On average, equities research analysts anticipate that Lear will post 14.81 earnings per share for the current fiscal year.

Insider Activity

In other news, CFO Jason M. Cardew sold 5,000 shares of the company’s stock in a transaction on Tuesday, June 2nd. The stock was sold at an average price of $147.50, for a total transaction of $737,500.00. Following the transaction, the chief financial officer directly owned 13,241 shares of the company’s stock, valued at approximately $1,953,047.50. This represents a 27.41% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, CEO Raymond E. Scott sold 50,000 shares of the company’s stock in a transaction on Wednesday, June 24th. The stock was sold at an average price of $135.37, for a total value of $6,768,500.00. Following the transaction, the chief executive officer directly owned 49,789 shares in the company, valued at approximately $6,739,936.93. The trade was a 50.11% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders sold 62,026 shares of company stock worth $8,498,248. 1.02% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently added to or reduced their stakes in the business. Jones Financial Companies Lllp raised its stake in Lear by 5,205.1% in the first quarter. Jones Financial Companies Lllp now owns 7,268 shares of the auto parts company’s stock valued at $604,000 after buying an additional 7,131 shares during the last quarter. United Services Automobile Association acquired a new position in shares of Lear during the first quarter valued at about $267,000. Empowered Funds LLC acquired a new position in shares of Lear during the first quarter valued at about $256,000. EverSource Wealth Advisors LLC raised its position in shares of Lear by 37.1% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 968 shares of the auto parts company’s stock valued at $92,000 after purchasing an additional 262 shares during the last quarter. Finally, Cerity Partners LLC raised its position in shares of Lear by 9.5% in the 2nd quarter. Cerity Partners LLC now owns 4,296 shares of the auto parts company’s stock valued at $408,000 after purchasing an additional 372 shares during the last quarter. 97.04% of the stock is currently owned by hedge funds and other institutional investors.

Key Stories Impacting Lear

Here are the key news stories impacting Lear this week:

• Positive Sentiment: Lear reported second-quarter adjusted EPS of $4.28, above the approximately $3.98 consensus estimate, while revenue of $6.21 billion also exceeded expectations of roughly $6.15 billion. EPS rose from $3.06 a year earlier and revenue increased 3%. Lear Reports Second Quarter 2026 Results; Raises Full-Year Guidance
• Positive Sentiment: The company raised the midpoints of its 2026 outlook, targeting revenue of approximately $23.54 billion to $24.01 billion and core operating earnings of about $1.08 billion to $1.20 billion. Lear cited roughly 3% year-over-year revenue growth, gains above overall vehicle-market growth, and improving operating margins. Lear Reports Second Quarter 2026 Results; Raises Full-Year Guidance
• Positive Sentiment: Adjusted EPS increased about 23% year over year, free cash flow improved by approximately $117 million, and Lear repurchased $100 million of stock during the quarter. Lear Corporation 2026 Q2 Results Presentation
• Neutral Sentiment: Analyst price targets remain mixed, with recent targets ranging from $131 to $179 and a six-month median of $145.50, indicating differing views on Lear’s earnings power and automotive-market prospects.
• Negative Sentiment: Investors appear to have treated the results as a “sell-the-news” event because the guidance increase and margin improvement may not have exceeded already high expectations. Separately, reported insider activity showed 20 open-market sales and no purchases over the past six months, which may add to near-term sentiment pressure. Lear Slides After Q2 Despite Higher 2026 Outlook

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.