Lear Corporation (NYSE:LEA – Get Free Report)’s stock price traded down 9.1% on Friday . The company traded as low as $136.88 and last traded at $133.07. 313,127 shares were traded during trading, a decline of 47% from the average daily volume of 590,973 shares. The stock had previously closed at $146.33.
Lear News Roundup
Here are the key news stories impacting Lear this week:
- Positive Sentiment: Lear reported second-quarter 2026 adjusted earnings of $4.28 per share, ahead of the roughly $3.89–$3.98 analyst consensus and up from $3.06–$3.47 a year earlier. Revenue of $6.21 billion also exceeded estimates of approximately $6.15 billion and increased 3% year over year. Lear Reports Second Quarter 2026 Results; Raises Full-Year Guidance
- Positive Sentiment: Management raised the midpoints of its full-year 2026 financial outlook. Revenue guidance was set at $23.5 billion to $24.0 billion, broadly consistent with the $23.7 billion analyst expectation, signaling continued confidence in automotive seating and E-Systems demand. Lear Reports Second Quarter 2026 Results; Raises Full-Year Guidance
- Neutral Sentiment: Analysts and Zacks highlighted Lear’s earnings growth and favorable growth-stock characteristics. However, the company’s net margin remained modest at 2.25%, making profitability trends, cost control and execution important for future valuation. Here’s Why Lear Is a Strong Growth Stock
- Negative Sentiment: Despite the earnings and revenue beats, the stock moved lower, suggesting investors may have expected a stronger earnings outlook or more aggressive guidance increase. The revenue forecast’s midpoint is only modestly above current expectations, while automotive suppliers remain exposed to vehicle-production levels, customer concentration and industry cost pressures.
Analysts Set New Price Targets
LEA has been the subject of a number of recent research reports. UBS Group cut their target price on shares of Lear from $145.00 to $135.00 and set a “neutral” rating for the company in a report on Tuesday, April 14th. Royal Bank Of Canada lifted their price objective on shares of Lear from $138.00 to $143.00 and gave the stock a “sector perform” rating in a research note on Monday, July 13th. JPMorgan Chase & Co. upped their target price on shares of Lear from $153.00 to $159.00 and gave the company an “overweight” rating in a research report on Friday, July 10th. Citigroup increased their price target on shares of Lear from $177.00 to $179.00 and gave the company a “buy” rating in a report on Monday, May 4th. Finally, TD Cowen upgraded Lear from a “hold” rating to a “buy” rating and lifted their price target for the stock from $138.00 to $165.00 in a research report on Tuesday, May 26th. One equities research analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating and nine have assigned a Hold rating to the company. Based on data from MarketBeat.com, the company presently has an average rating of “Hold” and a consensus target price of $144.62.
Lear Stock Down 10.1%
The company has a market cap of $6.59 billion, a P/E ratio of 13.07, a price-to-earnings-growth ratio of 0.71 and a beta of 1.25. The company has a debt-to-equity ratio of 0.51, a quick ratio of 1.05 and a current ratio of 1.33. The business’s fifty day moving average is $140.25 and its two-hundred day moving average is $131.12.
Lear (NYSE:LEA – Get Free Report) last issued its earnings results on Friday, July 31st. The auto parts company reported $4.28 EPS for the quarter, topping analysts’ consensus estimates of $3.98 by $0.30. The business had revenue of $6.21 billion for the quarter, compared to analyst estimates of $6.15 billion. Lear had a net margin of 2.25% and a return on equity of 13.69%. The company’s quarterly revenue was up 3.0% compared to the same quarter last year. During the same period last year, the company posted $3.06 earnings per share. Equities analysts predict that Lear Corporation will post 14.81 EPS for the current year.
Lear Dividend Announcement
The company also recently announced a quarterly dividend, which was paid on Tuesday, June 23rd. Shareholders of record on Wednesday, June 3rd were issued a $0.77 dividend. This represents a $3.08 annualized dividend and a dividend yield of 2.3%. The ex-dividend date was Wednesday, June 3rd. Lear’s dividend payout ratio is currently 30.80%.
Insider Transactions at Lear
In other news, CEO Raymond E. Scott sold 50,000 shares of the stock in a transaction on Wednesday, June 24th. The stock was sold at an average price of $135.37, for a total transaction of $6,768,500.00. Following the transaction, the chief executive officer owned 49,789 shares of the company’s stock, valued at approximately $6,739,936.93. This represents a 50.11% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Conrad L. Mallett, Jr. sold 190 shares of Lear stock in a transaction dated Wednesday, June 10th. The shares were sold at an average price of $141.34, for a total value of $26,854.60. Following the completion of the sale, the director owned 1,683 shares of the company’s stock, valued at $237,875.22. The trade was a 10.14% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 62,026 shares of company stock worth $8,498,248 over the last quarter. 1.02% of the stock is owned by corporate insiders.
Hedge Funds Weigh In On Lear
Large investors have recently made changes to their positions in the business. GAMMA Investing LLC increased its position in Lear by 7.2% during the 2nd quarter. GAMMA Investing LLC now owns 2,328 shares of the auto parts company’s stock valued at $312,000 after buying an additional 157 shares in the last quarter. Versant Capital Management Inc boosted its holdings in Lear by 3.8% in the second quarter. Versant Capital Management Inc now owns 2,260 shares of the auto parts company’s stock worth $303,000 after acquiring an additional 82 shares in the last quarter. CX Institutional grew its stake in shares of Lear by 6.6% during the second quarter. CX Institutional now owns 2,988 shares of the auto parts company’s stock worth $401,000 after acquiring an additional 184 shares during the last quarter. Edgestream Partners L.P. acquired a new position in shares of Lear during the first quarter valued at about $5,658,000. Finally, Bull Harbor Capital LLC acquired a new position in shares of Lear during the first quarter valued at about $238,000. 97.04% of the stock is owned by institutional investors and hedge funds.
About Lear
Lear Corporation (NYSE: LEA) is a global supplier of automotive seating and electrical distribution systems. The company designs, engineers and manufactures complete seat systems, seat components and power solutions for major vehicle manufacturers. Its electrical business delivers modules and components for battery management, infotainment, body and safety electronics, as well as advanced connectivity and electrification solutions.
The seating division develops lightweight, ergonomic seat structures, trim and mechanisms that address comfort, safety and environmental targets.
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