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

Linamar Co. (TSE:LNR)’s share price hit a new 52-week low during mid-day trading on Monday . The stock traded as low as C$51.55 and last traded at C$53.50, with a volume of 156375 shares changing hands. The stock had previously closed at C$56.54.

Wall Street Analyst Weigh In

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

Linamar Price Performance

The company has a current ratio of 1.68, a quick ratio of 0.75 and a debt-to-equity ratio of 46.32. The stock has a market cap of C$3.30 billion, a P/E ratio of 5.47, a price-to-earnings-growth ratio of 1.12 and a beta of 1.41. The business has a 50-day simple moving average of C$58.60 and a 200 day simple moving average of C$61.37.

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

Insider Activity

In other news, Director Linda Hasenfratz bought 50,000 shares of the business’s stock in a transaction that occurred on Monday, December 16th. The shares were bought at an average cost of C$60.01 per share, for a total transaction of C$3,000,500.00. Also, insider Linamar Corporation acquired 15,000 shares of Linamar stock in a transaction dated Monday, December 9th. The shares were acquired at an average price of C$63.01 per share, with a total value of C$945,097.50. Insiders have acquired 90,101 shares of company stock valued at $5,475,561 in the last ninety days. 33.49% of the stock is owned by company insiders.

Linamar Company Profile

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.