Lear Slides After Q2 Despite Higher 2026 Outlook

Lear Corporation (LEA) is down 8.6% today. Here is some analysis on what might have caused this price movement.

Analysis: The move appears tied to a negative market reaction to Lear’s second-quarter update even though the company raised full-year guidance. This could be because investors had already priced in a strong quarter after management previously indicated Q2 was tracking in line to slightly better, leaving the raise and margin progress short of the market’s higher expectations.

Details:

Lear’s second-quarter materials on July 31, 2026 showed higher full-year guidance, with projected 2026 revenue of about $23.54 billion to $24.01 billion and core operating earnings of about $1.08 billion to $1.20 billion.

The company highlighted roughly 3% year-over-year total revenue growth, about 2% growth over market, and improved operating income margins for E-Systems and for the company overall.

Adjusted EPS increased about 23% year over year, free cash flow improved by about $117 million from a year earlier, and Lear said it repurchased $100 million of stock in the quarter.

In June, management had already telegraphed that second-quarter performance was tracking in line to slightly better and that a higher full-year outlook was possible, which may have reduced the earnings-day surprise and contributed to a sell-the-news reaction.

Sources:

Lear Corporation, SEC, Sahm Capital

Disclaimer: This price movement analysis was generated with the help of AI. Please double-check the information provided for mistakes.

$LEA Insider Trading Activity

$LEA insiders have traded $LEA stock on the open market 20 times in the past 6 months. Of those trades, 0 have been purchases and 20 have been sales.

Here’s a breakdown of recent trading of $LEA stock by insiders over the last 6 months:

RAYMOND E SCOTT (President and CEO) has made 0 purchases and 4 sales selling 50,000 shares for an estimated $6,768,451.
FRANK C ORSINI (EVP and President, Seating) has made 0 purchases and 3 sales selling 20,487 shares for an estimated $2,846,368.
JASON M CARDEW (SVP and CFO) has made 0 purchases and 7 sales selling 19,500 shares for an estimated $2,717,705.
HARRY ALBERT KEMP (SVP & Chief Admin Officer) sold 7,000 shares for an estimated $954,170
ALICIA J. DAVIS (SVP and Chief Strategy Officer) sold 6,630 shares for an estimated $881,650
NICHOLAS JON ROELLI (SVP and President, E-Systems) sold 2,336 shares for an estimated $330,252
MARIANNE VIDERSHAIN (VP, Treas & Head of Inv Relat) sold 1,590 shares for an estimated $214,650
CONRAD L JR MALLETT has made 0 purchases and 2 sales selling 234 shares for an estimated $31,963.

To track insider transactions, check out Quiver Quantitative's insider trading dashboard. You can access data on insider stock transactions through the Quiver Quantitative API insider transaction endpoint.

$LEA Hedge Fund Activity

We have seen 235 institutional investors add shares of $LEA stock to their portfolio, and 167 decrease their positions in their most recent quarter.

Here are some of the largest recent moves:

PZENA INVESTMENT MANAGEMENT LLC removed 708,849 shares (-9.5%) from their portfolio in Q1 2026, for an estimated $85,827,436
RWC ASSET MANAGEMENT LLP removed 519,762 shares (-81.5%) from their portfolio in Q2 2026, for an estimated $69,679,293
FMR LLC removed 365,055 shares (-17.3%) from their portfolio in Q1 2026, for an estimated $44,200,859
JANE STREET GROUP, LLC added 294,393 shares (+16548.2%) to their portfolio in Q1 2026, for an estimated $35,645,104
BALYASNY ASSET MANAGEMENT L.P. removed 283,397 shares (-90.4%) from their portfolio in Q1 2026, for an estimated $34,313,708
OLDFIELD PARTNERS LLP removed 264,049 shares (-40.9%) from their portfolio in Q2 2026, for an estimated $35,398,408
HOTCHKIS & WILEY CAPITAL MANAGEMENT LLC removed 250,663 shares (-46.4%) from their portfolio in Q1 2026, for an estimated $30,350,276

To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard. You can access data on hedge funds moves and 13F filings through the Quiver Quantitative API 13F endpoint.

$LEA Price Targets

Multiple analysts have issued price targets for $LEA recently. We have seen 10 analysts offer price targets for $LEA in the last 6 months, with a median target of $145.5.

Here are some recent targets:

Dan Levy from Barclays set a target price of $155.0 on 07/09/2026
Colin Langan from Wells Fargo set a target price of $137.0 on 06/25/2026
Itay Michaeli from TD Cowen set a target price of $165.0 on 05/26/2026
Rajat Gupta from JP Morgan set a target price of $153.0 on 05/14/2026
Tom Narayan from RBC Capital set a target price of $138.0 on 05/05/2026
Mark Delaney from Goldman Sachs set a target price of $131.0 on 05/04/2026
Michael Ward from Citigroup set a target price of $179.0 on 05/04/2026

This article is not financial advice. See Quiver Quantitative's disclaimers for more information. Note that there may be inaccuracies due to mistakes in ticker-mapping, and other anomalies.