Notable Price Action: Is Buying 52-Week Stock Like Lear Corporation a Winning Strategy?

Notable Price Action: Is Buying 52 Week Stock Like Lear Corporation a Winning Strategy?

The stock of Lear Corporation (NYSE:LEA) hit a new 52-week high and has $133.78 target or 3.00% above today’s $129.88 share price. The 5 months bullish chart indicates low risk for the $9.27 billion company. The 1-year high was reported on Nov, 23 by Barchart.com. If the $133.78 price target is reached, the company will be worth $278.10 million more.
The 52-week high event is an important milestone for every stock because it shows very positive momentum and is time when buyers come in. During such notable technical setup, fundamental investors usually stay away and are careful shorting or selling the stock. About 227,000 shares traded hands. Lear Corporation (NYSE:LEA) has risen 13.92% since April 21, 2016 and is uptrending. It has outperformed by 8.59% the S&P500.

Analysts await Lear Corporation (NYSE:LEA) to report earnings on January, 26. They expect $3.44 earnings per share, up 7.50% or $0.24 from last year’s $3.2 per share. LEA’s profit will be $245.54M for 9.44 P/E if the $3.44 EPS becomes a reality. After $3.19 actual earnings per share reported by Lear Corporation for the previous quarter, Wall Street now forecasts 7.84% EPS growth.

Lear Corporation (NYSE:LEA) Ratings Coverage

Out of 11 analysts covering Lear Corporation (NYSE:LEA), 3 rate it a “Buy”, 2 “Sell”, while 6 “Hold”. This means 27% are positive. Lear Corporation has been the topic of 25 analyst reports since July 27, 2015 according to StockzIntelligence Inc. Deutsche Bank upgraded Lear Corporation (NYSE:LEA) rating on Monday, July 27. Deutsche Bank has “Buy” rating and $122 price target. Robert W. Baird initiated Lear Corporation (NYSE:LEA) on Tuesday, October 11 with “Neutral” rating. The company was maintained on Thursday, April 28 by RBC Capital Markets. The company was maintained on Thursday, October 27 by RBC Capital Markets. The stock of Lear Corporation (NYSE:LEA) has “Underperform” rating given on Wednesday, November 9 by Bank of America. RBC Capital Markets downgraded it to “Sector Perform” rating and $121 target price in Friday, October 14 report. The stock has “Neutral” rating given by Seaport Global on Tuesday, August 9. The stock of Lear Corporation (NYSE:LEA) earned “Buy” rating by UBS on Tuesday, August 18. Zacks downgraded Lear Corporation (NYSE:LEA) on Tuesday, August 25 to “Buy” rating. Goldman Sachs downgraded the stock to “Sell” rating in Thursday, October 6 report.

According to Zacks Investment Research, “Lear Corporation is a leading global supplier of automotive seating systems, electrical distribution systems and electronics. The seating segment consists of the manufacture, assembly and supply of vehicle seating requirements. The Company produces seat systems for automobiles and light trucks that are fully assembled and ready for installation. The electrical and electronic segment consists of the manufacture, assembly and supply of electrical and electronic systems and components for the vehicle. The Company is able to provide its customers with engineering and design solutions and manufactured systems, modules and components that optimally integrate the electrical distribution system of wiring, terminals and connectors, junction boxes and electronic modules within the overall architecture of the vehicle. Lear Corporation is headquartered in Southfield, Michigan.”

Insitutional Activity: The institutional sentiment decreased to 0.94 in 2016 Q2. Its down 0.11, from 1.05 in 2016Q1. The ratio dropped, as 33 funds sold all Lear Corporation shares owned while 169 reduced positions. 50 funds bought stakes while 162 increased positions. They now own 65.88 million shares or 12.31% less from 75.13 million shares in 2016Q1.
Sta Wealth Mngmt Limited Company has 2,800 shares for 0.1% of their US portfolio. Moreover, First Trust Lp has 0.09% invested in Lear Corporation (NYSE:LEA) for 294,518 shares. Eqis Cap Mgmt Inc has 0.09% invested in the company for 12,879 shares. Airain Limited last reported 0.2% of its portfolio in the stock. Envestnet Asset Management reported 53,561 shares or 0.02% of all its holdings. Menta Cap Limited Liability Corp has invested 0.33% of its portfolio in Lear Corporation (NYSE:LEA). The Illinois-based Hightower Advsr Limited Liability Co has invested 0.06% in Lear Corporation (NYSE:LEA). Evercore Wealth Mgmt Ltd Co reported 1,554 shares or 0.01% of all its holdings. The Pennsylvania-based Janney Montgomery Scott Lc has invested 0.04% in Lear Corporation (NYSE:LEA). Sg Americas Securities Ltd holds 1,192 shares or 0% of its portfolio. Gyroscope Capital Mngmt Ltd Liability Corp holds 3,699 shares or 0.31% of its portfolio. Eaton Vance Mngmt reported 7,250 shares or 0% of all its holdings. Fdx Advisors last reported 0.04% of its portfolio in the stock. Kbc Nv has 0.03% invested in the company for 20,973 shares. Wfg Advsr Limited Partnership accumulated 0.05% or 1,698 shares.

Insider Transactions: Since June 3, 2016, the stock had 0 insider buys, and 2 insider sales for $254,813 net activity. $178,856 worth of Lear Corporation (NYSE:LEA) shares were sold by FOSTER JONATHAN F. 653 shares were sold by Kunkel Jay K., worth $75,957 on Friday, June 3.

More important recent Lear Corporation (NYSE:LEA) news were published by: Forbes.com which released: “How China Is A Major Boost For Lear Corporation Right Now” on November 15, 2016, also Prnewswire.com published article titled: “Lear Corporation Inducted Into The Billion Dollar Roundtable”, Forbes.com published: “What Will Be The Jump In Lear’s Valuation If Seating Margin Expands By More …” on September 22, 2016. More interesting news about Lear Corporation (NYSE:LEA) was released by: Prnewswire.com and their article: “Qualcomm and Lear Corporation Sign Commercial Wireless Electric Vehicle …” with publication date: July 27, 2016.

LEA Company Profile

Lear Corporation (Lear), incorporated on January 13, 1987, is a supplier to the global automotive industry. The Firm is engaged in supplying seating, electrical distribution systems and electronic modules, as well as related sub-systems, components and software, to automotive manufacturers. The Firm operates through two divisions: seating and electrical. It has over 240 manufacturing, engineering and administrative locations in approximately 40 countries. It has automotive content on over 350 vehicle nameplates across the world.

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