Linamar (TSE:LNR) Sets New 52-Week Low – Time to Sell?

Shares of Linamar Co. (TSE:LNR) 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 trading hands. The stock had previously closed at C$54.78.

Wall Street Analyst Weigh In

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

Linamar Price Performance

The company has a market cap of C$3.41 billion, a P/E ratio of 5.65, a P/E/G ratio of 1.12 and a beta of 1.41. The stock has a 50-day simple moving average of C$59.16 and a 200 day simple moving average of C$62.19. The company has a debt-to-equity ratio of 46.32, a quick ratio of 0.75 and a current ratio of 1.68.

Linamar (TSE:LNR) last issued its earnings results on Tuesday, November 12th. The company reported C$2.35 EPS for the quarter, topping the consensus estimate of C$2.15 by C$0.20. The firm had revenue of C$2.64 billion during the quarter, compared to analysts’ expectations of C$2.75 billion. Linamar had a return on equity of 11.31% and a net margin of 5.77%. On average, equities analysts expect that Linamar Co. will post 11.4332724 EPS for the current year.

Insider Activity

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

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.