Making a noteworthy insider sell on July 31, RAYMOND SCOTT, President and CEO at Lear LEA, is reported in the latest SEC filing.
What Happened: A Form 4 filing with the U.S. Securities and Exchange Commission on Thursday outlined that SCOTT executed a sale of 5,000 shares of Lear with a total value of $483,873.
Tracking the Friday’s morning session, Lear shares are trading at $92.56, showing a down of 1.83%.
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Lear Corp designs, develops, and manufactures automotive seating and electrical systems and components. The company has two reporting segments Seating and E-Systems. Seating components include frames and mechanisms, covers (leather and woven fabric), seat heating and cooling, foam, and headrests. Automotive electrical distribution and connection systems and electronic systems include wiring harnesses, terminals and connectors, on-board battery chargers, high-voltage battery management systems. The company earns majority of its revenue from the seating segment.
Key Indicators: Lear’s Financial Health
Revenue Growth: Lear’s revenue growth over a period of 3 months has faced challenges. As of 30 June, 2025, the company experienced a revenue decline of approximately -47.97%. This indicates a decrease in the company’s top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Consumer Discretionary sector.
Evaluating Earnings Performance:
Gross Margin: With a low gross margin of 7.28%, the company exhibits below-average profitability, signaling potential struggles in cost efficiency compared to its industry peers.
Earnings per Share (EPS): Lear’s EPS is notably higher than the industry average. The company achieved a positive bottom-line trend with a current EPS of 3.07.
Debt Management: With a below-average debt-to-equity ratio of 0.55, Lear adopts a prudent financial strategy, indicating a balanced approach to debt management.
Analyzing Market Valuation:
Price to Earnings (P/E) Ratio: The Price to Earnings ratio of 13.34 is lower than the industry average, indicating potential undervaluation for the stock.
Price to Sales (P/S) Ratio: With a P/S ratio of 0.31 below industry standards, the stock shows potential undervaluation, making it an appealing investment option for those focusing on sales performance.
EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): The company’s EV/EBITDA ratio 5.48 is below the industry average, indicating that it may be relatively undervalued compared to peers.
Market Capitalization Analysis: With a profound presence, the company’s market capitalization is above industry averages. This reflects substantial size and strong market recognition.
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Illuminating the Importance of Insider Transactions
Insider transactions, although significant, should be considered within the larger context of market analysis and trends.
In the realm of legality, an “insider” is defined as any officer, director, or beneficial owner holding more than ten percent of a company’s equity securities under Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are required to disclose their transactions through a Form 4 filing, to be submitted within two business days of the transaction.
Notably, when a company insider makes a new purchase, it is considered an indicator of their positive expectations for the stock.
Conversely, insider sells may not necessarily signal a bearish stance on the stock and can be motivated by various factors.
Transaction Codes Worth Your Attention
Examining transactions, investors often concentrate on those unfolding in the open market, meticulously detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C indicates the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.
Check Out The Full List Of Lear’s Insider Trades.
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This article was generated by Benzinga’s automated content engine and reviewed by an editor.
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