Lear (NYSE:LEA) Hits New 52-Week High After Strong Earnings

Lear Corporation (NYSE:LEA) hit a new 52-week high during trading on Wednesday following a better than expected earnings announcement. The stock traded as high as $131.00 and last traded at $130.7450, with a volume of 110550 shares. The stock had previously closed at $119.60.

The auto parts company reported $3.41 EPS for the quarter, topping analysts’ consensus estimates of $2.67 by $0.74. The company had revenue of $5.99 billion during the quarter, compared to analyst estimates of $5.78 billion. Lear had a return on equity of 13.40% and a net margin of 1.88%.The firm’s revenue was up 4.8% on a year-over-year basis. During the same quarter last year, the firm posted $2.94 earnings per share.

Lear Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Tuesday, December 30th. Stockholders of record on Wednesday, December 10th were paid a dividend of $0.77 per share. The ex-dividend date of this dividend was Wednesday, December 10th. This represents a $3.08 dividend on an annualized basis and a dividend yield of 2.3%. Lear’s payout ratio is presently 37.79%.

Key Stories Impacting Lear

Here are the key news stories impacting Lear this week:

• Positive Sentiment: Q4 earnings beat and revenue upside — Lear reported Q4 EPS of $3.41 vs. consensus $2.67 and revenue of $5.99B vs. $5.78B est.; Seating and E‑Systems strength drove a 4.8% revenue increase year-over-year, supporting near-term cash flow and valuation. Read More.
• Positive Sentiment: $1.325B backlog and automation/margin commentary — Management outlined a $1.325B backlog through 2027 and flagged margin expansion from automation gains, which suggests revenue visibility and potential margin improvement over the next few years. Read More.
• Positive Sentiment: Large new contracts — Coverage notes Lear landed major contracts amid industry headwinds, reinforcing revenue pipeline and offsetting some cyclical weakness in automotive production. Read More.
• Neutral Sentiment: Analyst price target change — Wells Fargo raised its price target from $123 to $131 but kept an “equal weight” rating, which is a modest endorsement but still implies limited near-term upside relative to current levels. Read More.
• Neutral Sentiment: Long-term value thesis highlighted by research services — Analyst pieces (Zacks) call LEA a top value stock for long-term investors, which supports longer-horizon demand but is less likely to move the stock intraday. Read More.
• Negative Sentiment: FY‑2026 revenue guidance around peers/consensus — Lear gave FY‑2026 revenue guidance near the $23.2B–$24.0B range (consensus ~ $23.5B), which may be seen as cautious and could limit upside if margins or EPS guidance are conservative. Read More.
• Negative Sentiment: Full-year sales slight decline — Lear reported full‑year 2025 sales of $23.3B, down ~2% from 2024, signaling near-term cyclical pressure in end markets. Read More.
• Negative Sentiment: Conflicting/erroneous call coverage — Some transcripts and outlets briefly reported an apparent earnings “miss” or inconsistent EPS figures (e.g., an item quoting $1.58 EPS), which can create short-term volatility and investor confusion until official filings/press releases are referenced. Read More.

Wall Street Analyst Weigh In

Several analysts have commented on LEA shares. Barclays set a $140.00 price objective on shares of Lear in a report on Thursday. JPMorgan Chase & Co. increased their target price on Lear from $133.00 to $138.00 and gave the stock an “overweight” rating in a research report on Monday, November 3rd. TD Cowen lifted their price target on Lear from $117.00 to $133.00 and gave the company a “hold” rating in a research report on Thursday. Evercore ISI upped their price target on Lear from $110.00 to $120.00 and gave the stock an “in-line” rating in a research note on Monday, November 24th. Finally, Morgan Stanley increased their price objective on Lear from $112.00 to $123.00 and gave the stock an “equal weight” rating in a report on Thursday. Two equities research analysts have rated the stock with a Buy rating and nine have given a Hold rating to the company. According to MarketBeat.com, Lear presently has a consensus rating of “Hold” and an average price target of $135.10.

Insider Buying and Selling at Lear

In related news, CFO Jason M. Cardew sold 5,000 shares of the firm’s stock in a transaction that occurred on Thursday, December 18th. The stock was sold at an average price of $118.17, for a total transaction of $590,850.00. Following the completion of the transaction, the chief financial officer owned 15,244 shares of the company’s stock, valued at $1,801,383.48. This trade represents a 24.70% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. 0.91% of the stock is owned by insiders.

Institutional Investors Weigh In On Lear

A number of institutional investors have recently modified their holdings of the stock. M&T Bank Corp raised its position in shares of Lear by 46,707.8% in the 4th quarter. M&T Bank Corp now owns 951,602 shares of the auto parts company’s stock worth $109,054,000 after purchasing an additional 949,569 shares during the last quarter. Schroder Investment Management Group grew its position in Lear by 75.6% during the 2nd quarter. Schroder Investment Management Group now owns 1,801,284 shares of the auto parts company’s stock valued at $171,086,000 after purchasing an additional 775,476 shares during the last quarter. American Century Companies Inc. increased its stake in Lear by 78.6% during the 2nd quarter. American Century Companies Inc. now owns 1,269,500 shares of the auto parts company’s stock valued at $120,577,000 after purchasing an additional 558,538 shares in the last quarter. Norges Bank purchased a new position in Lear in the second quarter worth about $48,468,000. Finally, Balyasny Asset Management L.P. bought a new position in shares of Lear in the second quarter worth approximately $39,656,000. 97.04% of the stock is owned by hedge funds and other institutional investors.

Lear Trading Up 2.5%

The firm’s 50 day moving average price is $117.85 and its 200-day moving average price is $108.53. The company has a debt-to-equity ratio of 0.52, a current ratio of 1.35 and a quick ratio of 1.05. The stock has a market cap of $7.04 billion, a P/E ratio of 16.66, a P/E/G ratio of 1.53 and a beta of 1.30.

Lear Company Profile

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.