Lear (NYSE:LEA) Stock Price Down 8% – Should You Sell?

Lear Co. (NYSE:LEA)’s share price traded down 8% on Thursday . The company traded as low as $88.69 and last traded at $89.63. 227,422 shares traded hands during mid-day trading, a decline of 67% from the average session volume of 695,700 shares. The stock had previously closed at $97.41.

Analyst Upgrades and Downgrades

A number of equities analysts have issued reports on the company. JPMorgan Chase & Co. cut their price target on Lear from $147.00 to $143.00 and set an “overweight” rating for the company in a research note on Monday, January 27th. StockNews.com raised shares of Lear from a “hold” rating to a “buy” rating in a report on Thursday, December 19th. Cowen downgraded Lear from a “buy” rating to a “hold” rating in a research note on Thursday, March 6th. Wells Fargo & Company boosted their target price on Lear from $99.00 to $103.00 and gave the stock an “equal weight” rating in a research report on Friday, February 7th. Finally, TD Cowen cut shares of Lear from a “buy” rating to a “hold” rating and set a $95.00 price target for the company. in a research note on Friday, March 7th. Nine investment analysts have rated the stock with a hold rating and five have assigned a buy rating to the company’s stock. According to data from MarketBeat.com, Lear has a consensus rating of “Hold” and an average price target of $123.36.

Lear Trading Down 8.4 %

The company has a debt-to-equity ratio of 0.59, a quick ratio of 1.02 and a current ratio of 1.32. The stock has a 50-day moving average price of $95.62 and a two-hundred day moving average price of $98.58. The stock has a market capitalization of $4.78 billion, a P/E ratio of 9.97, a price-to-earnings-growth ratio of 0.49 and a beta of 1.44.

Lear (NYSE:LEA) last announced its earnings results on Thursday, February 6th. The auto parts company reported $2.94 EPS for the quarter, beating analysts’ consensus estimates of $2.50 by $0.44. Lear had a net margin of 2.17% and a return on equity of 14.70%. On average, research analysts forecast that Lear Co. will post 12.89 EPS for the current fiscal year.

Lear Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, March 26th. Investors of record on Thursday, March 6th were given a dividend of $0.77 per share. This represents a $3.08 annualized dividend and a yield of 3.45%. The ex-dividend date of this dividend was Thursday, March 6th. Lear’s dividend payout ratio (DPR) is 34.45%.

Insider Buying and Selling at Lear

In related news, Director Rod Lache acquired 2,178 shares of the stock in a transaction dated Wednesday, March 5th. The shares were purchased at an average cost of $91.80 per share, with a total value of $199,940.40. Following the transaction, the director now directly owns 2,178 shares in the company, valued at approximately $199,940.40. This represents a ∞ increase in their ownership of the stock. The acquisition was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Company insiders own 0.79% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds have recently bought and sold shares of the company. Wellington Management Group LLP lifted its position in shares of Lear by 5.2% in the fourth quarter. Wellington Management Group LLP now owns 3,709 shares of the auto parts company’s stock valued at $351,000 after acquiring an additional 183 shares in the last quarter. Wealth Enhancement Advisory Services LLC lifted its holdings in Lear by 29.6% in the 4th quarter. Wealth Enhancement Advisory Services LLC now owns 3,840 shares of the auto parts company’s stock worth $364,000 after purchasing an additional 876 shares in the last quarter. Universal Beteiligungs und Servicegesellschaft mbH bought a new position in Lear in the 4th quarter worth approximately $2,329,000. Putney Financial Group LLC bought a new stake in shares of Lear during the fourth quarter valued at approximately $58,000. Finally, Perennial Advisors LLC purchased a new position in shares of Lear in the fourth quarter worth $3,002,000. Institutional investors own 97.04% of the company’s stock.

About Lear

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.