Bank of America Begins Coverage on Lear (NYSE:LEA)

Bank of America assumed coverage on shares of Lear (NYSE:LEA) in a note issued to investors on Wednesday. The firm set a “neutral” rating on the auto parts company’s stock.

Other equities analysts also recently issued research reports about the company. Benchmark started coverage on Lear in a research report on Thursday, February 19th. They issued a “buy” rating and a $170.00 target price on the stock. Argus raised shares of Lear to a “strong-buy” rating in a research note on Monday, February 9th. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Lear in a report on Thursday, January 22nd. Morgan Stanley raised their price target on shares of Lear from $112.00 to $123.00 and gave the stock an “equal weight” rating in a research note on Thursday, February 5th. Finally, UBS Group boosted their price target on shares of Lear from $135.00 to $145.00 and gave the stock a “neutral” rating in a research report on Thursday, February 5th. One equities research analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating and nine have given a Hold rating to the stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Hold” and a consensus price target of $138.27.

Lear Price Performance

Shares of NYSE LEA traded up $0.23 during trading on Wednesday, hitting $123.84. The company had a trading volume of 73,181 shares, compared to its average volume of 532,632. The firm has a market capitalization of $6.28 billion, a price-to-earnings ratio of 15.20, a price-to-earnings-growth ratio of 1.00 and a beta of 1.26. The stock has a fifty day simple moving average of $126.04 and a two-hundred day simple moving average of $113.19. The company has a quick ratio of 1.05, a current ratio of 1.35 and a debt-to-equity ratio of 0.52. Lear has a fifty-two week low of $73.85 and a fifty-two week high of $142.84.

Lear (NYSE:LEA) last issued its quarterly earnings results on Wednesday, February 4th. The auto parts company reported $3.41 earnings per share for the quarter, beating analysts’ consensus estimates of $2.67 by $0.74. Lear had a net margin of 1.88% and a return on equity of 13.40%. The firm had revenue of $5.99 billion for the quarter, compared to analyst estimates of $5.78 billion. During the same period last year, the company posted $2.94 EPS. Lear’s quarterly revenue was up 4.8% compared to the same quarter last year. On average, research analysts expect that Lear will post 12.89 earnings per share for the current year.

Insider Activity

In other news, SVP Harry Albert Kemp sold 7,000 shares of Lear stock in a transaction that occurred on Thursday, February 19th. The shares were sold at an average price of $136.31, for a total transaction of $954,170.00. Following the sale, the senior vice president owned 17,423 shares of the company’s stock, valued at approximately $2,374,929.13. The trade was a 28.66% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, VP Marianne Vidershain sold 1,590 shares of the stock in a transaction that occurred on Tuesday, February 24th. The stock was sold at an average price of $135.00, for a total value of $214,650.00. Following the completion of the transaction, the vice president owned 1,862 shares of the company’s stock, valued at $251,370. The trade was a 46.06% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold 30,220 shares of company stock valued at $3,986,427 over the last three months. 0.91% of the stock is currently owned by company insiders.

Institutional Trading of Lear

A number of hedge funds and other institutional investors have recently modified their holdings of LEA. Altshuler Shaham Ltd acquired a new position in Lear in the fourth quarter valued at about $25,000. Los Angeles Capital Management LLC purchased a new stake in shares of Lear in the 4th quarter valued at approximately $30,000. Global Retirement Partners LLC lifted its holdings in shares of Lear by 942.3% in the 4th quarter. Global Retirement Partners LLC now owns 271 shares of the auto parts company’s stock worth $31,000 after acquiring an additional 245 shares during the last quarter. WealthCollab LLC purchased a new position in shares of Lear during the 2nd quarter worth approximately $28,000. Finally, Allworth Financial LP increased its holdings in Lear by 62.6% in the 3rd 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 during the last quarter. 97.04% of the stock is owned by institutional investors and hedge funds.

More Lear News

Here are the key news stories impacting Lear this week:

• Positive Sentiment: Q4 results beat expectations: Lear reported $3.41 EPS vs. consensus $2.67 and revenue of $5.99B vs. ~$5.78B, with revenue +4.8% year-over-year — this EPS/revenue beat supports the company’s earnings thesis and underpins analyst FY EPS expectations (~12.89).
• Neutral Sentiment: Valuation and balance-sheet profile are mixed: market cap ~$6.3B, PE ~15.2 and PEG ~1.0 suggest moderate valuation vs. growth; debt/equity ~0.52 and current/quick ratios (~1.35 / 1.05) indicate manageable leverage and adequate near-term liquidity.
• Neutral Sentiment: Technical picture: the stock recently pulled back toward the 50-day moving average (~$126) and remains above the 200-day (~$113). The move looks like a short-term consolidation after a run to the 12‑month high (~$142.84).
• Negative Sentiment: Profitability is thin: reported net margin (~1.9%) is low for the headline revenue, leaving results sensitive to commodity costs, supply-chain disruptions, or OEM production swings — risks that can amplify downside in cyclical auto names.
• Negative Sentiment: No new company-specific catalysts in the latest newsfeed — absent fresh guidance, order wins, or OEM production updates, the stock is vulnerable to sector rotations and technical selling that don’t reflect a change in fundamentals.

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.