Lear Corporation (NYSE: LEA) stock jumped 1.20% on Thursday to $138.61 against a previous-day closing price of $136.97. With 0.72 million shares changed hands, the volume of the stock remained heavier than its average volume of 0.58 million shares. During the session, the Auto Parts company that operates in wider Consumer Cyclical sector, reached to the highest price of $139.41 whereas the lowest price it dropped to was $135.08. The 52-week range on LEA shows that it touched its highest point at $157.90 and its lowest point at $114.67 during that stretch. It currently has a 1-year price target of $170.14. With its current market cap of 8.07 billion, LEA has annualized dividend of $3.08 while the current yield stands at 2.22%. Beta for the stock currently stands at 1.61.
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Price Performance and Earnings:
Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of LEA was down-trending over the past week, with a drop of -0.83%, but this was down by -3.18% over a month. Three-month performance dropped to -4.18% while six-month performance rose 3.22%. The stock lost -0.60% in the past year, while it has gained 11.76% so far this year. A look at the trailing 12-month EPS for LEA yields 8.78 with Next year EPS estimates of 16.34. For the next quarter, that number is 2.73. This implies an EPS growth rate of -11.60% for this year and 37.17% for next year. EPS is expected to grow by 35.31% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of -20.10%.
Float and Shares Shorts:
At present, 59.13 million LEA shares are outstanding with a float of 58.56 million shares on hand for trading. On Aug 30, 2023, short shares totaled 1.4 million, which was 2.38% higher than short shares on Jul 30, 2023. In addition to Mr. Raymond E. Scott Jr. as the firm’s Pres, CEO & Director, Mr. Jason M. Cardew serves as its Sr. VP & CFO.
Institutional Ownership:
Through their ownership of 102.62% of LEA’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 57.23% of LEA, in contrast to 44.90% held by mutual funds. Shares owned by individuals account for 0.59%. As the largest shareholder in LEA with 11.15% of the stake, Pzena Investment Management LLC holds 6,582,839 shares worth 6,582,839. A second-largest stockholder of LEA, The Vanguard Group, Inc., holds 5,734,752 shares, controlling over 9.72% of the firm’s shares. BlackRock Fund Advisors is the third largest shareholder in LEA, holding 5,042,995 shares or 8.54% stake. With a 3.21% stake in LEA, the iShares Core S&P Mid Cap ETF is the largest stakeholder. A total of 1,894,726 shares are owned by the mutual fund manager. The Vanguard Total Stock Market ETF, which owns about 3.12% of LEA stock, is the second-largest Mutual Fund holder. It holds 1,840,794 shares valued at 284.88 million. Vanguard Small Cap Index Fund holds 2.59% of the stake in LEA, owning 1,530,728 shares worth 236.9 million.
An Overview of Recent Financials:
Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Jun 30, 2023, LEA reported revenue of $5.07B and operating income of $144.10M. The EBITDA in the recently reported quarter was $281.30M and diluted EPS was $1.14.
Analysts Ratings:
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for LEA since 0 analysts follow the stock currently. In the same way, a target price assigned to a stock can also reveal much about its potential. With LEA analysts setting a high price target of $230.00 and a low target of $140.00, the average target price over the next 12 months is $171.38. Based on these targets, LEA could surge 65.93% to reach the target high and rise by 1.0% to reach the target low. Reaching the average price target will result in a growth of 23.64% from current levels.
EPS: Estimates vs Actual
It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy.
Summary of Insider Activity:
Insiders traded LEA stock several times over the past three months with 1 Buys and 5 Sells. In these transactions, 53 shares were bought while 42,132 shares were sold. The number of buy transactions has increased to 38 while that of sell transactions has risen to 49 over the past year. The total number of shares bought during that period was 116,280 while 178,901 shares were sold.
