Lear (NYSE:LEA) Stock Price Passes Above Two Hundred Day Moving Average – Should You Sell?

Lear Corporation (NYSE:LEA)’s share price crossed above its two hundred day moving average during trading on Friday . The stock has a two hundred day moving average of $129.48 and traded as high as $144.09. Lear shares last traded at $141.6110, with a volume of 527,228 shares trading hands.

Key Stories Impacting Lear

Here are the key news stories impacting Lear this week:

• Positive Sentiment: Zacks highlighted Lear as a “fast-paced momentum at a bargain” stock, suggesting the company has recent price strength while still looking attractively valued. Article Title
• Positive Sentiment: Seeking Alpha published a bullish take, “Lear Is In High Gear,” which adds to the view that investors are warming to the auto supplier’s fundamentals and momentum. Article Title
• Positive Sentiment: Another recent article framed Lear as a top growth stock for the long term, reinforcing a constructive investor outlook on LEA. Article Title
• Neutral Sentiment: Several other items in the feed were unrelated to Lear Corporation or its business and are unlikely to affect the stock.

Analyst Ratings Changes

LEA has been the topic of a number of research reports. Weiss Ratings upgraded Lear from a “hold (c+)” rating to a “buy (b-)” rating in a research report on Tuesday, June 23rd. Citigroup increased their price objective on Lear from $177.00 to $179.00 and gave the company a “buy” rating in a research report on Monday, May 4th. Barclays boosted their target price on Lear from $150.00 to $155.00 and gave the stock an “equal weight” rating in a research report on Thursday, July 9th. TD Cowen raised Lear from a “hold” rating to a “buy” rating and upped their target price for the stock from $138.00 to $165.00 in a research note on Tuesday, May 26th. Finally, The Goldman Sachs Group increased their price target on shares of Lear from $115.00 to $131.00 and gave the company a “neutral” rating in a research report on Monday, May 4th. One analyst has rated the stock with a Strong Buy rating, five have given a Buy rating and nine have given a Hold rating to the company. Based on data from MarketBeat, the company presently has an average rating of “Hold” and a consensus target price of $144.62.

Lear Stock Down 1.4%

The company has a market capitalization of $7.09 billion, a P/E ratio of 14.16, a price-to-earnings-growth ratio of 0.73 and a beta of 1.25. The company has a current ratio of 1.33, a quick ratio of 1.05 and a debt-to-equity ratio of 0.51. The stock’s fifty day moving average is $138.51 and its 200 day moving average is $129.48.

Lear (NYSE:LEA) last released its quarterly earnings data on Friday, May 1st. The auto parts company reported $3.87 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $3.51 by $0.36. The firm had revenue of $5.82 billion for the quarter, compared to analysts’ expectations of $5.84 billion. Lear had a net margin of 2.25% and a return on equity of 13.69%. The company’s revenue for the quarter was up 4.7% compared to the same quarter last year. During the same quarter in the previous year, the company earned $3.12 earnings per share. Research analysts predict that Lear Corporation will post 14.81 EPS for the current fiscal year.

Lear Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Tuesday, June 23rd. Investors of record on Wednesday, June 3rd were issued a $0.77 dividend. The ex-dividend date was Wednesday, June 3rd. This represents a $3.08 annualized dividend and a yield of 2.2%. Lear’s payout ratio is 30.80%.

Insider Activity at Lear

In other news, Director Conrad L. Mallett, Jr. sold 190 shares of Lear stock in a transaction dated Wednesday, June 10th. The shares were sold at an average price of $141.34, for a total transaction of $26,854.60. Following the sale, the director owned 1,683 shares of the company’s stock, valued at approximately $237,875.22. The trade was a 10.14% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, CFO Jason M. Cardew sold 5,000 shares of the business’s stock in a transaction dated Tuesday, June 2nd. The shares were sold at an average price of $147.50, for a total transaction of $737,500.00. Following the transaction, the chief financial officer owned 13,241 shares in the company, valued at $1,953,047.50. This represents a 27.41% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 62,026 shares of company stock valued at $8,498,248 in the last 90 days. 1.02% of the stock is owned by company insiders.

Institutional Trading of Lear

Several institutional investors and hedge funds have recently bought and sold shares of the stock. Altshuler Shaham Ltd purchased a new position in shares of Lear during the 4th quarter worth approximately $25,000. WealthCollab LLC purchased a new position in shares of Lear in the 2nd quarter valued at approximately $28,000. Los Angeles Capital Management LLC purchased a new position in shares of Lear in the 4th quarter valued at approximately $30,000. Allworth Financial LP boosted its position in shares of Lear by 62.6% during the third 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 in the last quarter. Finally, Global Retirement Partners LLC grew its stake in Lear by 942.3% in the fourth quarter. Global Retirement Partners LLC now owns 271 shares of the auto parts company’s stock worth $31,000 after purchasing an additional 245 shares during the period. 97.04% of the stock is currently owned by hedge funds and other institutional investors.

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.