A share of Lear Corporation (NYSE:LEA) closed at $148.00 per share on Thursday, down from $156.23 day before. While Lear Corporation has underperformed by -5.27%, investors are advised to look at stock chart patterns for technical insight. Within its last year performance, LEA fell by -11.27%, with highs and lows ranging from $195.43 to $118.38, whereas the simple moving average fell by -3.94% in the last 200 days.
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On July 11, 2022, Exane BNP Paribas Upgraded Lear Corporation (NYSE: LEA) to Neutral. A report published by Wells Fargo on June 07, 2022, Upgraded its rating to ‘Overweight’ for LEA. Exane BNP Paribas also rated LEA shares as ‘Underperform’, setting a target price of $112 on the company’s shares in an initiating report dated April 11, 2022. BofA Securities April 06, 2022d the rating to Buy on April 06, 2022, and set its price target from $150 to $195. Morgan Stanley February 28, 2022d its ‘Overweight’ rating to ‘Equal-Weight’ for LEA, as published in its report on February 28, 2022. Wells Fargo’s report from December 16, 2021 suggests a price prediction of $195 for LEA shares, giving the stock a ‘Equal Weight’ rating. RBC Capital Mkts also rated the stock as ‘Sector Perform’.
Analysis of Lear Corporation (LEA)
It’s important to note that LEA shareholders are currently getting $3.08 per share in dividends, so investors will receive a return regardless of how the company performs. Further, the quarter-over-quarter decrease in sales is -2.70%, showing a negative trend in the upcoming months.
Lear Corporation’s future performance can be predicted by a variety of well-rounded types of analysis and research, with equity being one of the most crucial ones. The goal here is to ensure that your current return on equity of 4.70% is sufficient for you to turn a profit off your investment. Taking into account the quick ratio of the company, currently set at 1.00, you can see that the company can cover any debts it may have, which can easily be seen in the annual report of the company.
For any stock, average volume can be an extremely valuable indicator of volatility, and LEA is registering an average volume of 564.58K. On a monthly basis, the volatility of the stock is set at 3.77%, whereas on a weekly basis, it is put at 4.09%, with a loss of -1.35% over the past seven days. Furthermore, long-term investors anticipate a median target price of $158.07, showing growth from the present price of $148.00, which can serve as yet another indication of whether LEA is worth investing in or should be passed over.
How Do You Analyze Lear Corporation Shares?
A giant in the Auto Parts market, Lear Corporation (LEA) is based in the USA. When comparing Lear Corporation shares with other companies under Consumer Cyclical, the P/E value is an influential factor to note. This is because it represents an indication of the future growth of the company in terms of investors’ expectations. Ultimately, the value of the latter should demonstrate steady, rapid growth, which is an accurate measure of the company’s progress. In addition to the value of 40.83, there is a growth in quarterly earnings of -75.60%.
Besides checking the fundamentals, you should also know how many employees own shares in the company. This is because the values should be in line with investors’ expectations. As such, the current holdings of company stock inside the company are set at 0.20%. This can enable you to see the extent to which executives own the company’s stock.
Are institutional investors increasing their holdings in LEA shares?
The recent increase in stakes in LEA appears to be a result of several institutional investors and hedge funds increasing their positions. Pzena Investment Management LLC’s position in LEA has increased by 21.37% in the first quarter. The company now owns 6,265,529 shares of the stock, with a value of $788.77 million, following the purchase of 1,103,398 additional shares during the last quarter. The Vanguard Group, Inc. made another increased to its shares in LEA during the first quarter, upping its stake by 0.73%. During the last quarter, the company picked up 39,269 additional shares for a total stake of worth $680.77 million, bringing number of shares owned by the company to 5,407,649.
During the first quarter, BlackRock Fund Advisors added a 43,171 position in LEA. Harris Associates LP sold an additional -0.13 million shares in the last quarter, decreasing its holdings by -3.93%, now holding 3.27 million shares worth $411.59 million. At the end of the first quarter, Capital Research & Management Co increased its LEA holdings by 47.94% and now holds 3.06 million LEA shares valued at $385.83 million with the added 0.99 million shares during the period.