Lear (NYSE:LEA) Shares Gap Up After 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 changing hands.

The auto parts company reported $2.94 earnings per share (EPS) 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 firm also recently announced a quarterly dividend, which was paid on Monday, December 30th. Shareholders of record on Wednesday, December 11th were given a dividend of $0.77 per share. This represents a $3.08 annualized dividend and a yield of 3.26%. The ex-dividend date was Wednesday, December 11th. Lear’s payout ratio is 32.39%.

Analysts Set New Price Targets

LEA has been the subject of several research analyst reports. Morgan Stanley dropped their price objective on Lear from $145.00 to $135.00 and set an “overweight” rating for the company in a research note on Thursday, November 14th. StockNews.com raised shares of Lear from a “hold” rating to a “buy” rating in a research note on Thursday, December 19th. Barclays decreased their target price on shares of Lear from $120.00 to $115.00 and set an “equal weight” rating on the stock in a research report on Wednesday, January 22nd. Bank of America cut their price objective on Lear from $180.00 to $170.00 and set a “buy” rating on the stock in a report on Monday, October 14th. Finally, TD Cowen reduced their target price on shares of Lear from $142.00 to $125.00 and set a “buy” rating on the stock in a report on Friday, October 25th. Seven equities research analysts have rated the stock with a hold rating and six have issued a buy rating to the company’s stock. According to MarketBeat, Lear presently has a consensus rating of “Hold” and a consensus target price of $132.18.

Institutional Trading of Lear

Institutional investors have recently added to or reduced their stakes in the business. Nisa Investment Advisors LLC increased its position in Lear by 187.0% in the fourth quarter. Nisa Investment Advisors LLC now owns 287 shares of the auto parts company’s stock worth $27,000 after buying an additional 187 shares during the period. Addison Advisors LLC increased its stake in shares of Lear by 68.2% during the fourth quarter. Addison Advisors LLC now owns 338 shares of the auto parts company’s stock valued at $32,000 after acquiring an additional 137 shares during the period. Brooklyn Investment Group bought a new stake in Lear in the third quarter worth about $34,000. Blue Trust Inc. lifted its position in shares of Lear by 240.4% during the 3rd quarter. Blue Trust Inc. now owns 303 shares of the auto parts company’s stock valued at $35,000 after acquiring an additional 214 shares during the last quarter. Finally, Signaturefd LLC boosted its holdings in shares of Lear by 71.6% in the third quarter. Signaturefd LLC now owns 333 shares of the auto parts company’s stock worth $36,000 after buying an additional 139 shares during the period. Institutional investors own 97.04% of the company’s stock.

Lear Price Performance

The company has a market cap of $5.14 billion, a PE ratio of 9.94, a price-to-earnings-growth ratio of 0.61 and a beta of 1.42. The company has a debt-to-equity ratio of 0.57, a current ratio of 1.33 and a quick ratio of 1.03. The stock has a fifty day moving average price of $95.63 and a 200-day moving average price of $103.17.

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.