Linamar (TSE:LNR) Reaches New 12-Month Low – What’s Next?

Linamar Co. (TSE:LNR) shares reached a new 52-week low during mid-day trading on Tuesday . The company traded as low as C$54.07 and last traded at C$55.33, with a volume of 87787 shares. The stock had previously closed at C$54.78.

Analyst Upgrades and Downgrades

A number of brokerages have recently commented on LNR. Scotiabank cut shares of Linamar from an “outperform” rating to a “sector perform” rating and dropped their target price for the company from C$86.00 to C$77.00 in a report on Tuesday, October 29th. BMO Capital Markets dropped their price objective on shares of Linamar from C$80.00 to C$75.00 in a research note on Wednesday, November 13th. CIBC set a C$85.00 target price on shares of Linamar and gave the company an “outperform” rating in a research note on Monday. Raymond James dropped their price target on Linamar from C$74.00 to C$70.00 in a research report on Thursday, November 14th. Finally, TD Securities downgraded Linamar from a “buy” rating to a “hold” rating and cut their price target for the stock from C$89.00 to C$68.00 in a research note on Wednesday, November 13th.

Linamar Price Performance

The firm’s fifty day simple moving average is C$59.10 and its 200-day simple moving average is C$62.04. The firm has a market capitalization of C$3.48 billion, a PE ratio of 5.76, a PEG ratio of 1.12 and a beta of 1.41. The company has a quick ratio of 0.75, a current ratio of 1.68 and a debt-to-equity ratio of 46.32.

Linamar (TSE:LNR) last announced its quarterly earnings data on Tuesday, November 12th. The company reported C$2.35 earnings per share for the quarter, topping analysts’ consensus estimates of C$2.15 by C$0.20. Linamar had a net margin of 5.77% and a return on equity of 11.31%. The company had revenue of C$2.64 billion during the quarter, compared to analyst estimates of C$2.75 billion. On average, research analysts forecast that Linamar Co. will post 11.4332724 earnings per share for the current fiscal year.

Insider Activity

In related news, Director Linda Hasenfratz bought 50,000 shares of the business’s stock in a transaction on Monday, December 16th. The stock was acquired at an average price of C$60.01 per share, with a total value of C$3,000,500.00. Also, insider Linamar Corporation purchased 25,101 shares of the stock in a transaction dated Friday, November 29th. The shares were purchased at an average cost of C$60.95 per share, for a total transaction of C$1,529,963.68. Insiders have acquired a total of 90,101 shares of company stock valued at $5,475,561 over the last ninety days. 33.49% of the stock is currently owned by corporate insiders.

About Linamar

Linamar Corporation, together with its subsidiaries, produces engineered products in Canada, Europe, the Asia Pacific, and rest of North America. It operates through two segments, Mobility and Industrial. The Mobility segment focuses on light metal casting, forging, machining, and assembly for electrified and powered vehicle markets.