Boston Partners has taken a significant step by acquiring a new position in Lear Corporation (NYSE: LEA), a major player in the automotive parts sector. The investment firm purchased 274,590 shares valued at approximately $26.07 million during the second quarter of 2023, according to a recent disclosure with the Securities and Exchange Commission. This acquisition represents about 0.52% of Lear’s total shares, marking a noteworthy addition to Boston Partners’ portfolio.
Several other institutional investors have also adjusted their stakes in Lear Corporation. Notably, Vanguard Group Inc. increased its investment by 2.5% in the first quarter, now holding 6,657,389 shares worth around $587.32 million following the purchase of an additional 165,494 shares. Dimensional Fund Advisors LP also raised its stake by 0.7%, bringing its total to 2,631,477 shares valued at $232.15 million.
Massachusetts Financial Services Co. boosted its holdings by 6.6%, acquiring 2,358,330 shares worth about $208.05 million. Similarly, Lyrical Asset Management LP grew its position by 0.3%, now owning 1,060,216 shares valued at $93.53 million. American Century Companies Inc. made a significant move as well, increasing its stake by 105.7%, resulting in 710,962 shares valued at approximately $62.72 million. Collectively, institutional investors own 97.04% of Lear Corporation’s stock.
Analysts Weigh In on Lear Corporation
Recent reports from equity research analysts provide insights into Lear’s stock performance. UBS Group lowered its price target from $109.00 to $106.00, maintaining a “neutral” rating. Conversely, Wells Fargo & Company increased its target from $108.00 to $112.00, while rating the stock as “equal weight.” The Goldman Sachs Group set a price target of $104.00, and Wall Street Zen adjusted its rating from “strong-buy” to “buy.”
Currently, the consensus rating for Lear Corporation stands at “Hold,” with an average target price of $118.60. Out of the analysts, two have issued a Buy rating, while ten have opted for a Hold rating.
Latest Financial Performance
Lear’s stock opened at $109.41 on Thursday, reflecting a stable market position. The company has a market capitalization of approximately $5.68 billion, a price-to-earnings (P/E) ratio of 12.77, and a P/E to growth (P/E/G) ratio of 0.82. Its debt-to-equity ratio stands at 0.53, with a current ratio of 1.34 and a quick ratio of 1.07. Lear Corporation has experienced a one-year low of $73.85 and a high of $113.10.
On October 31, 2023, Lear Corporation reported its quarterly earnings, revealing earnings per share (EPS) of $2.79. This result exceeded analysts’ expectations of $2.76 by $0.03. The company’s revenue for the quarter was reported at $5.68 billion, surpassing the forecast of $5.63 billion. This reflects a 1.7% increase in quarterly revenue compared to the same period last year.
Looking ahead, Lear has set its fiscal year 2025 guidance at an EPS of $12.89, indicating optimism about future performance. As Lear Corporation continues to adapt to changing market dynamics, the interest from institutional investors underscores the confidence in its business strategy and financial health.
