Lear Co. (NYSE:LEA) Sees Significant Growth in Short Interest

Lear Co. (NYSE:LEA) was the recipient of a large growth in short interest during the month of March. As of March 31st, there was short interest totalling 2,830,000 shares, a growth of 15.0% from the March 15th total of 2,460,000 shares. Based on an average trading volume of 531,300 shares, the days-to-cover ratio is presently 5.3 days. Approximately 5.0% of the shares of the stock are sold short.

Lear Stock Down 0.3 %

LEA traded down $0.41 on Tuesday, hitting $131.93. The company had a trading volume of 437,141 shares, compared to its average volume of 531,147. The stock has a fifty day moving average price of $139.06 and a 200-day moving average price of $135.87. Lear has a 12-month low of $117.79 and a 12-month high of $157.90. The company has a debt-to-equity ratio of 0.54, a quick ratio of 1.04 and a current ratio of 1.35. The stock has a market capitalization of $7.51 billion, a price-to-earnings ratio of 13.63, a P/E/G ratio of 0.33 and a beta of 1.54.

Lear (NYSE:LEA) last posted its earnings results on Tuesday, February 6th. The auto parts company reported $3.03 earnings per share (EPS) for the quarter, missing the consensus estimate of $3.12 by ($0.09). Lear had a net margin of 2.44% and a return on equity of 14.09%. The company had revenue of $5.84 billion during the quarter, compared to analysts’ expectations of $5.69 billion. During the same quarter last year, the firm earned $2.81 EPS. Lear’s revenue for the quarter was up 8.8% on a year-over-year basis. Analysts predict that Lear will post 14.55 EPS for the current fiscal year.

Lear Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Wednesday, March 27th. Shareholders of record on Friday, March 8th were paid a $0.77 dividend. The ex-dividend date of this dividend was Thursday, March 7th. This represents a $3.08 annualized dividend and a yield of 2.33%. Lear’s dividend payout ratio (DPR) is presently 31.82%.

Wall Street Analyst Weigh In

LEA has been the subject of several research analyst reports. JPMorgan Chase & Co. decreased their target price on Lear from $195.00 to $179.00 and set an “overweight” rating for the company in a research report on Thursday, January 25th. Barclays lifted their target price on Lear from $170.00 to $175.00 and gave the stock an “overweight” rating in a research report on Thursday, April 11th. StockNews.com upgraded Lear from a “hold” rating to a “buy” rating in a research report on Wednesday, April 10th. Wells Fargo & Company raised their price target on Lear from $130.00 to $134.00 and gave the company an “equal weight” rating in a research note on Wednesday, February 7th. Finally, Morgan Stanley raised their price target on Lear from $140.00 to $150.00 and gave the company an “equal weight” rating in a research note on Monday, February 26th. Four investment analysts have rated the stock with a hold rating and six have issued a buy rating to the company’s stock. According to MarketBeat.com, Lear presently has an average rating of “Moderate Buy” and an average price target of $162.44.

Insider Activity

In related news, CFO Jason M. Cardew sold 2,750 shares of the firm’s stock in a transaction on Tuesday, March 5th. The stock was sold at an average price of $140.81, for a total value of $387,227.50. Following the completion of the sale, the chief financial officer now directly owns 17,506 shares in the company, valued at $2,465,019.86. The sale was disclosed in a filing with the SEC, which can be accessed through this link. In related news, CFO Jason M. Cardew sold 2,750 shares of the firm’s stock in a transaction on Tuesday, March 5th. The stock was sold at an average price of $140.81, for a total value of $387,227.50. Following the completion of the sale, the chief financial officer now directly owns 17,506 shares in the company, valued at $2,465,019.86. The sale was disclosed in a filing with the SEC, which can be accessed through this link. Also, CEO Raymond E. Scott sold 10,652 shares of the firm’s stock in a transaction on Friday, February 9th. The stock was sold at an average price of $132.86, for a total value of $1,415,224.72. Following the completion of the sale, the chief executive officer now owns 13,627 shares of the company’s stock, valued at $1,810,483.22. The disclosure for this sale can be found here. Corporate insiders own 0.79% of the company’s stock.

Hedge Funds Weigh In On Lear

Several institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Wealth Enhancement Advisory Services LLC boosted its holdings in Lear by 1.8% in the first quarter. Wealth Enhancement Advisory Services LLC now owns 6,828 shares of the auto parts company’s stock worth $989,000 after acquiring an additional 124 shares in the last quarter. ARGA Investment Management LP boosted its holdings in Lear by 196.7% in the first quarter. ARGA Investment Management LP now owns 319,156 shares of the auto parts company’s stock worth $46,239,000 after acquiring an additional 211,574 shares in the last quarter. Riverview Trust Co acquired a new stake in Lear in the first quarter worth about $32,000. Financiere des Professionnels Fonds d investissement inc. boosted its holdings in Lear by 16.5% in the first quarter. Financiere des Professionnels Fonds d investissement inc. now owns 25,979 shares of the auto parts company’s stock worth $3,764,000 after acquiring an additional 3,683 shares in the last quarter. Finally, Perennial Advisors LLC lifted its holdings in shares of Lear by 2.6% during the first quarter. Perennial Advisors LLC now owns 30,166 shares of the auto parts company’s stock worth $4,370,000 after purchasing an additional 759 shares during the period. Hedge funds and other 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.