Lear (LEA) Board Authorizes Share Buyback Plan

Lear (NYSE:LEA) announced that its board has authorized a share repurchase program, which authorizes the company to buyback $954.00 million in outstanding shares on Wednesday, February 14th, EventVestor reports. This buyback authorization authorizes the auto parts company to buy shares of its stock through open market purchases. Shares buyback programs are typically an indication that the company’s board believes its stock is undervalued.

A number of analysts have weighed in on LEA shares. Zacks Investment Research raised shares of Lear from a “hold” rating to a “buy” rating and set a $214.00 target price on the stock in a research note on Tuesday, January 9th. Longbow Research started coverage on shares of Lear in a research note on Friday, January 5th. They set a “buy” rating and a $225.00 target price on the stock. Cowen reaffirmed a “buy” rating and set a $196.00 target price on shares of Lear in a research note on Friday, October 27th. Robert W. Baird reiterated a “buy” rating and set a $213.00 price target on shares of Lear in a report on Friday, January 26th. Finally, Jefferies Group reiterated a “buy” rating and set a $231.00 price target on shares of Lear in a report on Monday, January 29th. Two investment analysts have rated the stock with a sell rating, five have given a hold rating, twelve have issued a buy rating and one has assigned a strong buy rating to the stock. The company currently has an average rating of “Buy” and a consensus target price of $192.06.

Lear (NYSE:LEA) traded down $2.53 during mid-day trading on Thursday, reaching $189.63. 148,448 shares of the company traded hands, compared to its average volume of 671,703. The firm has a market capitalization of $12,950.00, a price-to-earnings ratio of 11.30, a price-to-earnings-growth ratio of 1.39 and a beta of 1.47. The company has a current ratio of 1.36, a quick ratio of 1.11 and a debt-to-equity ratio of 0.45. Lear has a 1-year low of $132.01 and a 1-year high of $202.42.

Lear (NYSE:LEA) last released its earnings results on Friday, January 26th. The auto parts company reported $4.38 earnings per share (EPS) for the quarter, beating the consensus estimate of $4.25 by $0.13. The business had revenue of $5.36 billion for the quarter, compared to analyst estimates of $5.27 billion. Lear had a net margin of 6.42% and a return on equity of 30.32%. Lear’s revenue for the quarter was up 15.5% on a year-over-year basis. During the same quarter in the previous year, the business earned $3.80 earnings per share. equities analysts anticipate that Lear will post 18.87 earnings per share for the current year.

The company also recently announced a quarterly dividend, which will be paid on Monday, March 26th. Investors of record on Wednesday, March 7th will be issued a $0.70 dividend. This is a positive change from Lear’s previous quarterly dividend of $0.50. This represents a $2.80 annualized dividend and a yield of 1.48%. Lear’s payout ratio is presently 11.88%.

In other news, EVP Terrence B. Larkin sold 1,137 shares of the company’s stock in a transaction dated Monday, November 20th. The shares were sold at an average price of $177.74, for a total transaction of $202,090.38. Following the transaction, the executive vice president now owns 6,912 shares in the company, valued at $1,228,538.88. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, SVP Mel Stephens sold 796 shares of the company’s stock in a transaction dated Tuesday, November 28th. The shares were sold at an average price of $179.00, for a total transaction of $142,484.00. Following the transaction, the senior vice president now owns 40,000 shares in the company, valued at approximately $7,160,000. The disclosure for this sale can be found here. 0.49% of the stock is owned by insiders.

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Lear Company Profile

Lear Corporation (Lear) is a supplier to the global automotive industry. The Company is engaged in supplying seating, electrical distribution systems and electronic modules, as well as related sub-systems, components and software, to automotive manufacturers. The Company’s segments include Seating and E-Systems.

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