VANGUARD GROUP INC Boosts Stake in Lear Corp
On July 31, 2023, VANGUARD GROUP INC, a renowned investment firm, increased its stake in Lear Corp (NYSE:LEA), a leading automotive seating and electrical systems manufacturer. This article provides an in-depth analysis of the transaction, the profiles of the guru and the traded company, and the potential implications of this investment move.
Transaction Details
VANGUARD GROUP INC added 131,690 shares of Lear Corp to its portfolio, bringing its total holdings to 5,915,722 shares. The shares were acquired at a price of $154.76 each. This transaction represents a 2.28% change in the firm's holdings and a 10.07% stake in Lear Corp. Despite the relatively small impact on the firm's portfolio (0.02%), this move signifies the firm's confidence in Lear Corp's growth prospects.
Guru Profile: VANGUARD GROUP INC
Established in 1975 by John C. Bogle, VANGUARD GROUP INC is a mutual funds company known for its cost-efficient investment strategies. The firm's core purpose is to treat all investors fairly and give them the best chance for investment success. Vanguard's top holdings include Apple Inc (NASDAQ:AAPL), Amazon.com Inc (NASDAQ:AMZN), Alphabet Inc (NASDAQ:GOOGL), Microsoft Corp (NASDAQ:MSFT), and NVIDIA Corp (NASDAQ:NVDA). The firm's equity stands at a staggering $3,927.41 trillion, with a strong focus on the Technology and Healthcare sectors.
Traded Company Profile: Lear Corp
Lear Corp, based in the USA, is a leading manufacturer of automotive seating and electrical systems and components. The company's market cap stands at $8.73 billion, with a stock price of $148.66. Despite a PE percentage of 16.97, Lear Corp is considered modestly undervalued, with a GF Value of 169.96. The company's financial strength is reflected in its Balance Sheet Rank of 7/10, Profitability Rank of 8/10, and GF Score of 81/100.
Stock Performance and Valuation
Since its IPO in 1994, Lear Corp's stock has grown by 488.75%. The stock's year-to-date performance stands at 18.11%, despite a 3.94% decrease since the transaction. The company's GF Value Rank is 6/10, indicating a modest undervaluation. With a Momentum Rank of 10/10, the stock shows strong potential for future performance.
Comparison with Other Gurus
Other notable gurus, including Joel Greenblatt (Trades, Portfolio), HOTCHKIS & WILEY, and Ken Fisher (Trades, Portfolio), also hold Lear Corp stock. However, Pzena Investment Management LLC holds the largest share. The varying investment strategies and positions of these gurus highlight the diverse perspectives on Lear Corp's growth prospects.
Conclusion
VANGUARD GROUP INC's recent acquisition of Lear Corp shares underscores the firm's confidence in the company's growth potential. Despite the modest impact on the firm's portfolio, this move could significantly influence Lear Corp's future performance. As of August 11, 2023, all data and rankings are accurate and based on the provided relative data.
This article first appeared on GuruFocus.
