RAYMOND SCOTT Executes Sell Order: Offloads $483K In Lear Stock

RAYMOND SCOTT, President and CEO at Lear (NYSE:LEA), reported an insider sell on July 31, according to a new SEC filing.

What Happened: A Form 4 filing from the U.S. Securities and Exchange Commission on Thursday showed that SCOTT sold 5,000 shares of Lear. The total transaction amounted to $483,873.

As of Thursday morning, Lear shares are down by 0.0%, currently priced at $94.26.

Delving into Lear's Background

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.

A Deep Dive into Lear's Financials

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.

Key Profitability Indicators:

• Gross Margin: The company shows a low gross margin of 7.28%, suggesting potential challenges in cost control and profitability compared to its peers.

• Earnings per Share (EPS): Lear's EPS outshines the industry average, indicating a strong 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 P/E ratio of 13.33 is lower than the industry average, implying a discounted valuation for Lear's stock.

• Price to Sales (P/S) Ratio: The current P/S ratio of 0.31 is below industry norms, suggesting potential undervaluation and presenting an investment opportunity for those considering sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With an EV/EBITDA ratio lower than industry averages at 5.48, Lear could be considered undervalued.

Market Capitalization Highlights: Above the industry average, the company's market capitalization signifies a significant scale, indicating strong confidence and market prominence.

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Uncovering the Importance of Insider Activity

Insider transactions, although significant, should be considered within the larger context of market analysis and trends.

From a legal standpoint, the term "insider" pertains to any officer, director, or beneficial owner holding more than ten percent of a company's equity securities as outlined in Section 12 of the Securities Exchange Act of 1934. This encompasses executives in the c-suite and significant hedge funds. These insiders are mandated to inform the public of their transactions through a Form 4 filing, to be submitted within two business days of the transaction.

A company insider's new purchase is a indicator of their positive anticipation for a rise in the stock.

While insider sells may not necessarily reflect a bearish view and can be motivated by various factors.

Important Transaction Codes

Surveying the realm of stock transactions, investors often give prominence to those unfolding in the open market, systematically detailed in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S signifies a sale. Transaction code C denotes 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.