Rod Lache, a director at Lear Corp (LEA), recently bought 2,178 shares. The buy is an initial stake for the director, and came to a total cost of $199,945.
This marks the first insider buy at the automotive equipment manufacturer in over two years, following another director buy in March 2023. Otherwise, there have been a few insider sales over the past two years, including sizeable sales by the CEO and CFO.
Overall, Lear insiders own 0.6% of shares.
A weak market for automotive sales and products has hit Lear, with earnings growth down 30% over the past year. Revenues are off by 2%, and shares are down by nearly one-third.
However, Lear shares are looking like a potential value play, as shares are now trading at about 7 times forward earnings, and just over 0.2 times their price-to-sales ratio.
Action to take: Lear shares have bounced strongly after recent lows, and may be in the process of forming a relief rally in the months ahead. Contrarian and value investors may like shares here.
Plus, at current prices, Lear also pays a 3.2% dividend.
For traders, the June $110 calls, last trading for about $3.70, could see mid-double-digit returns or better in the coming weeks if shares have finally bottomed out and are ready to trend higher.
Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any company mentioned in this article.