Lear (NYSE:LEA) Shares Gap Up Following Strong Earnings

Lear Co. (NYSE:LEA)’s stock price gapped up prior to trading on Thursday after the company announced better than expected quarterly earnings. The stock had previously closed at $93.44, but opened at $98.23. Lear shares last traded at $98.28, with a volume of 100,832 shares.

The auto parts company reported $2.94 earnings per share for the quarter, topping analysts’ consensus estimates of $2.50 by $0.44. Lear had a return on equity of 14.68% and a net margin of 2.33%.

Lear Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Monday, December 30th. Shareholders of record on Wednesday, December 11th were given a $0.77 dividend. The ex-dividend date was Wednesday, December 11th. This represents a $3.08 annualized dividend and a yield of 3.26%. Lear’s dividend payout ratio is 32.39%.

Analysts Set New Price Targets

Several equities research analysts recently weighed in on the stock. Barclays reduced their target price on shares of Lear from $120.00 to $115.00 and set an “equal weight” rating for the company in a research note on Wednesday, January 22nd. TD Cowen reduced their price objective on Lear from $142.00 to $125.00 and set a “buy” rating for the company in a research report on Friday, October 25th. Wells Fargo & Company lowered their price objective on Lear from $106.00 to $99.00 and set an “equal weight” rating on the stock in a research report on Monday, December 16th. JPMorgan Chase & Co. reduced their target price on Lear from $147.00 to $143.00 and set an “overweight” rating for the company in a research report on Monday, January 27th. Finally, Morgan Stanley lowered their price target on shares of Lear from $145.00 to $135.00 and set an “overweight” rating on the stock in a report on Thursday, November 14th. Seven investment analysts have rated the stock with a hold rating and six have given a buy rating to the stock. Based on data from MarketBeat.com, the stock has a consensus rating of “Hold” and a consensus target price of $132.18.

Hedge Funds Weigh In On Lear

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Nisa Investment Advisors LLC raised its position in Lear by 187.0% in the 4th quarter. Nisa Investment Advisors LLC now owns 287 shares of the auto parts company’s stock valued at $27,000 after buying an additional 187 shares during the last quarter. Addison Advisors LLC raised its holdings in shares of Lear by 68.2% in the fourth quarter. Addison Advisors LLC now owns 338 shares of the auto parts company’s stock valued at $32,000 after purchasing an additional 137 shares during the last quarter. Brooklyn Investment Group bought a new stake in shares of Lear in the third quarter worth $34,000. Blue Trust Inc. boosted its holdings in Lear by 240.4% during the third quarter. Blue Trust Inc. now owns 303 shares of the auto parts company’s stock worth $35,000 after purchasing an additional 214 shares during the last quarter. Finally, Signaturefd LLC grew its position in Lear by 71.6% in the third quarter. Signaturefd LLC now owns 333 shares of the auto parts company’s stock valued at $36,000 after purchasing an additional 139 shares in the last quarter. 97.04% of the stock is owned by institutional investors and hedge funds.

Lear Stock Up 1.2 %

The firm’s 50 day simple moving average is $95.63 and its 200-day simple moving average is $103.17. The company has a current ratio of 1.33, a quick ratio of 1.03 and a debt-to-equity ratio of 0.57. The stock has a market capitalization of $5.14 billion, a price-to-earnings ratio of 9.94, a price-to-earnings-growth ratio of 0.61 and a beta of 1.42.

Lear Company Profile

Lear Corporation designs, develops, engineers, manufactures, assembles, and supplies automotive seating, and electrical distribution systems and related components for automotive original equipment manufacturers in North America, Europe, Africa, Asia, and South America. Its Seating segment offers seat systems, seat subsystems, keyseat components, seat trim covers, seat mechanisms, seat foams, and headrests, as well as surface materials, such as leather and fabric for automobiles and light trucks, compact cars, pick-up trucks, and sport utility vehicles.