Shares of Lear Corporation (NYSE: LEA) have fluctuated considerably in recent months, receiving a mix of ratings from various investment firms as analysts try to gauge the trajectory of this auto parts manufacturer. After recent actions from several brokerages, the average recommendation among the thirteen analysts following the stock is a "Hold." Notably, nine analysts have issued a Hold rating while four have given Lear a Buy rating.
For example, Wells Fargo & Company upped its price objective on Lear from $99 to $103, delivering an "equal weight" rating in a report released on February 7, 2025. On the contrary, JPMorgan Chase & Co. reduced its target for Lear from $147 to $143 yet maintains an "overweight" rating. Similarly, UBS Group downgraded its price target for Lear from $104 to $102, marking a "neutral" stance according to reports issued on February 7, 2025.
Adding to this discussion, StockNews.com recently promoted Lear from a "hold" rating to a "buy" rating in their report dated December 19, 2024, showing a slightly more optimistic view. However, Morgan Stanley recently revised its target down from $135 to $125 in a report on March 3, 2025, which is indicative of the cautious stance taken by many firms.
As of March 21, 2025, shares of Lear were trading at $94.23, reflecting a slight decline of 1.6% during trading hours. This drop aligned with the overall stock performance for the company, considering its 52-week low was registered at $86.28 and its high reached $147.11. The average target price among analysts from the last year stands at $123.36, suggesting that some see potential for growth despite the recent setbacks.
Looking at the fundamentals, Lear recently released its quarterly earnings on February 6, 2025. The firm's performance was encouraging, reporting $2.94 in earnings per share (EPS), exceeding the analysts’ consensus estimates of $2.50 by a notable $0.44. This positive outcome highlights the operational strength of Lear despite challenging market conditions.
Analysts are forecasting that Lear’s earnings per share for the current year will reach approximately $12.89, showcasing a robust projection as the company navigates its operational landscape.
On another note, Lear announced recently that it would be paying a quarterly dividend of $0.77 per share to shareholders on March 26, 2025. The ex-dividend date is set for March 6, 2025. This dividend yield comes in at about 3.27%, which is noteworthy given the company’s dividend payout ratio of 34.45%.
Institutional investment appears to be robust, as approximately 97.04% of Lear’s shares are held by institutional investors. In a recent development, Nisa Investment Advisors LLC increased its stake in Lear by 187% during the fourth quarter, boosting their position significantly.
Other notable institutional transactions included Addison Advisors LLC raising its stake by 68.2% and UMB Bank N.A. growing its investment by a staggering 233.3%. These moves indicate confidence among institutional investors regarding Lear's long-term prospects.
On the insider trading front, Director Rod Lache was seen purchasing 2,178 shares at an average price of $91.80 per share on March 5, 2025, amounting to an investment of approximately $199,940, representing a strategic move amidst fluctuating stock values.
Overall, with Lear Corporation poised at a crucial juncture, the mixed reviews from analysts, coupled with fervent institutional interest and solid performance metrics, if combined, paint a picture of a company battling both pressures and opportunities inherent within the automotive sector. The coming months will be critical in determining whether Lear can capitalize on its strengths and address its challenges effectively.
