Linamar (TSE:LNR) Stock Dropped to "Hold" by TD Securities

Key Points

• TD Securities downgraded Linamar from “strong buy” to “hold,” while TD also cut its price target from C$120 to C$106. Scotia lowered its target to C$103; analysts’ consensus rating is “hold” with an average target of C$108.86.
• Linamar reported quarterly earnings of C$2.59 per share and revenue of C$3.08 billion. Shares opened at C$87.61, below their 50- and 200-day moving averages of about C$95.
• The company announced a buyback of up to 3.72 million shares (6.38% of issued shares) and a quarterly dividend of C$0.32 per share.

Linamar (TSE:LNR - Get Free Report) was downgraded by TD Securities from a "strong-buy" rating to a "hold" rating in a note issued to investors on Thursday, Zacks reports.

Other analysts have also recently issued reports about the stock. Scotia reduced their price objective on shares of Linamar from C$111.00 to C$103.00 and set a "sector perform" rating for the company in a research note on Thursday. Scotiabank boosted their price objective on Linamar from C$102.00 to C$114.00 and gave the stock a "sector perform" rating in a research report on Thursday, August 13th. Canadian Imperial Bank of Commerce raised their target price on Linamar from C$115.00 to C$120.00 in a report on Thursday, August 13th. BMO Capital Markets lowered Linamar from an "outperform" rating to a "hold" rating and set a C$105.00 price target for the company. in a report on Friday, September 18th. Finally, TD downgraded shares of Linamar from a "buy" rating to a "hold" rating and lowered their price objective for the stock from C$120.00 to C$106.00 in a research note on Thursday. One equities research analyst has rated the stock with a Buy rating and six have given a Hold rating to the stock. According to data from MarketBeat.com, Linamar presently has an average rating of "Hold" and a consensus price target of C$108.86.

Linamar Stock Performance

Shares of LNR stock opened at C$87.61 on Thursday. The stock's 50-day moving average is C$94.85 and its two-hundred day moving average is C$94.99. Linamar has a fifty-two week low of C$73.27 and a fifty-two week high of C$110.58. The firm has a market cap of C$5.17 billion, a P/E ratio of 7.64, a PEG ratio of 1.12 and a beta of 1.53. The company has a debt-to-equity ratio of 32.89, a current ratio of 1.88 and a quick ratio of 0.75.

Linamar (TSE:LNR - Get Free Report) last issued its quarterly earnings data on Wednesday, November 4th. The company reported C$2.59 earnings per share for the quarter. Linamar had a net margin of 6.15% and a return on equity of 10.96%. The firm had revenue of C$3.08 billion for the quarter. Analysts predict that Linamar will post 11.43 earnings per share for the current fiscal year.

Insider Buying and Selling

In other Linamar news, Director Mark Stoddart sold 18,932 shares of the business's stock in a transaction dated Tuesday, August 18th. The shares were sold at an average price of C$105.58, for a total value of C$1,998,840.56. Following the transaction, the director directly owned 455,914 shares in the company, valued at C$48,135,400.12. The trade was a 3.99% decrease in their ownership of the stock. 33.49% of the stock is currently owned by company insiders.

More Linamar News

Here are the key news stories impacting Linamar this week:

• Positive Sentiment: Third-quarter results showed EPS of C$2.59 on revenue of C$3.08 billion; reports characterized both earnings and sales as higher. Linamar Reports Higher Earnings, Sales for Third Quarter
• Positive Sentiment: Linamar announced a buyback of up to 3,723,719 shares, equal to 6.38% of its issued share capital. Repurchases can support per-share earnings and signal confidence in the company’s value. Linamar Corporation announces an Equity Buyback
• Positive Sentiment: The company declared a quarterly dividend of C$0.32 per share, equivalent to C$1.28 annually and a yield of about 1.5%.
• Negative Sentiment: TD Cowen lowered its rating from “buy” to “hold” and cut its price target from C$120 to C$106. Scotia also reduced its target, from C$111 to C$103, while maintaining a “sector perform” rating. The target cuts and more cautious ratings may weigh on sentiment, despite both targets remaining above the recent share price. TD Cowen Downgrades Linamar to Hold

Linamar Company Profile

Linamar Corp is a diversified global manufacturing company of highly engineered products. The Company's Industrial segment operates the Skyjack and MacDon brands, It manufactures products for the Aerial Work Platform and Agricultural industries, respectively. The Mobility segment features vertically integrated operations to combine expertise in light metal casting, forging, machining and assembly of components and systems for electric and traditional vehicle applications. In addition, McLaren Engineering and eLIN Product Solutions Group provide design, development, and testing services for the Mobility segment.

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