Linamar (TSE:LNR) Stock Moved Down to Hold by TD

Key Points

• TD downgraded Linamar from Buy to Hold and cut its price target from C$120 to C$106, implying about 21% upside from the share price cited in the article.
• Analyst sentiment is broadly neutral: Linamar has a consensus Hold rating and an average price target of C$108.86, with two Buy ratings and five Holds.
• Shares fell C$5.15 to C$87.63 on Thursday. Linamar reported quarterly earnings of C$2.59 per share on C$3.08 billion in revenue.

Linamar (TSE:LNR - Get Free Report) was downgraded by investment analysts at TD from a "buy" rating to a "hold" rating in a research note issued on Thursday, BayStreet reports. They currently have a C$106.00 price target on the stock, down from their previous price target of C$120.00. TD's target price would indicate a potential upside of 20.96% from the company's current price.

Several other brokerages have also recently weighed in on LNR. Canadian Imperial Bank of Commerce lifted their price target on Linamar from C$115.00 to C$120.00 in a research report on Thursday, August 13th. Scotia dropped their price objective on Linamar from C$111.00 to C$103.00 and set a "sector perform" rating on the stock in a report on Thursday. BMO Capital Markets cut Linamar from an "outperform" rating to a "hold" rating and set a C$105.00 price objective on the stock. in a report on Friday, September 18th. Finally, Scotiabank raised their target price on Linamar from C$102.00 to C$114.00 and gave the stock a "sector perform" rating in a research note on Thursday, August 13th. Two analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company's stock. Based on data from MarketBeat.com, the company presently has a consensus rating of "Hold" and an average target price of C$108.86.

Linamar Stock Performance

LNR traded down C$5.15 on Thursday, hitting C$87.63. The company's stock had a trading volume of 237,672 shares, compared to its average volume of 139,180. The company's 50 day simple moving average is C$95.04 and its 200-day simple moving average is C$94.99. The firm has a market cap of C$5.17 billion, a P/E ratio of 7.65, a price-to-earnings-growth ratio of 1.12 and a beta of 1.62. Linamar has a 12 month low of C$73.27 and a 12 month high of C$110.58. The company has a quick ratio of 0.75, a current ratio of 1.88 and a debt-to-equity ratio of 32.89.

Linamar (TSE:LNR - Get Free Report) last released 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 business had revenue of C$3.08 billion during the quarter. Analysts forecast that Linamar will post 11.43 EPS for the current year.

Insider Transactions at Linamar

In related news, Director Mark Stoddart sold 18,932 shares of the business's stock in a transaction dated Tuesday, August 18th. The stock was sold at an average price of C$105.58, for a total transaction of C$1,998,840.56. Following the completion of 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. Corporate insiders own 33.49% of the company's stock.

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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