Autoliv (NYSE:ALV) Sets New 52-Week High - Should You Buy?

Key Points

• Autoliv's share price reached a new 52-week high of $126.10, closing at $125.19, reflecting a positive trend in trading activity with 86,257 shares exchanged.
• Analysts are divided on Autoliv, with Jefferies Financial Group giving it a "buy" rating at a $140 price target, while Robert W. Baird reduced their target to $124 with a "neutral" rating.
• The company has authorized a significant share repurchase program worth $2.50 billion, indicating confidence from leadership that the stock is currently undervalued.

Shares of Autoliv, Inc. (NYSE:ALV - Get Free Report) reached a new 52-week high on Wednesday . The stock traded as high as $126.10 and last traded at $125.19, with a volume of 86257 shares. The stock had previously closed at $124.40.

Analyst Ratings Changes

Several research firms have recently weighed in on ALV. Wells Fargo & Company boosted their price target on Autoliv from $100.00 to $104.00 and gave the stock an "equal weight" rating in a research note on Tuesday, July 1st. Jefferies Financial Group began coverage on Autoliv in a research note on Wednesday, July 2nd. They issued a "buy" rating and a $140.00 price target for the company. UBS Group boosted their price target on Autoliv from $103.00 to $123.00 and gave the stock a "buy" rating in a research note on Wednesday, May 28th. Royal Bank Of Canada assumed coverage on Autoliv in a research note on Wednesday, June 25th. They issued an "outperform" rating and a $133.00 price target for the company. Finally, Robert W. Baird reduced their price objective on Autoliv from $126.00 to $124.00 and set a "neutral" rating for the company in a research report on Monday, July 21st. Two analysts have rated the stock with a Strong Buy rating, eleven have given a Buy rating and five have assigned a Hold rating to the company. According to data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average target price of $120.69.

Autoliv Stock Performance

The company has a debt-to-equity ratio of 0.55, a current ratio of 0.93 and a quick ratio of 0.70. The business has a 50-day moving average of $117.56 and a 200 day moving average of $103.62. The company has a market cap of $9.74 billion, a PE ratio of 13.88, a PEG ratio of 1.29 and a beta of 1.34.

Autoliv (NYSE:ALV - Get Free Report) last issued its quarterly earnings results on Friday, July 18th. The auto parts company reported $2.21 EPS for the quarter, topping analysts' consensus estimates of $2.07 by $0.14. The business had revenue of $2.71 billion during the quarter, compared to analysts' expectations of $2.57 billion. Autoliv had a return on equity of 30.73% and a net margin of 6.83%.The business's quarterly revenue was up 4.2% on a year-over-year basis. During the same quarter in the prior year, the business posted $1.87 earnings per share. Equities research analysts anticipate that Autoliv, Inc. will post 9.51 EPS for the current fiscal year.

Autoliv announced that its Board of Directors has approved a share repurchase program on Wednesday, June 4th that authorizes the company to repurchase $2.50 billion in shares. This repurchase authorization authorizes the auto parts company to buy up to 31.3% of its stock through open market purchases. Stock repurchase programs are usually an indication that the company's leadership believes its stock is undervalued.

Insider Buying and Selling

In other Autoliv news, Director Jan Carlson sold 1,555 shares of the company's stock in a transaction dated Wednesday, June 11th. The stock was sold at an average price of $108.32, for a total value of $168,437.60. Following the completion of the sale, the director owned 77,493 shares in the company, valued at $8,394,041.76. This represents a 1.97% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through this hyperlink. 0.30% of the stock is currently owned by insiders.

Institutional Trading of Autoliv

A number of hedge funds and other institutional investors have recently bought and sold shares of the stock. Charles Schwab Investment Management Inc. increased its position in Autoliv by 1.4% in the second quarter. Charles Schwab Investment Management Inc. now owns 2,517,790 shares of the auto parts company's stock worth $281,741,000 after buying an additional 34,064 shares in the last quarter. Swedbank AB increased its position in Autoliv by 26.3% in the second quarter. Swedbank AB now owns 2,397,735 shares of the auto parts company's stock worth $268,307,000 after buying an additional 499,411 shares in the last quarter. Dimensional Fund Advisors LP boosted its stake in shares of Autoliv by 14.4% in the first quarter. Dimensional Fund Advisors LP now owns 1,857,069 shares of the auto parts company's stock worth $164,257,000 after acquiring an additional 233,469 shares during the period. LSV Asset Management boosted its stake in shares of Autoliv by 83.3% in the second quarter. LSV Asset Management now owns 1,020,082 shares of the auto parts company's stock worth $114,147,000 after acquiring an additional 463,449 shares during the period. Finally, Massachusetts Financial Services Co. MA boosted its stake in shares of Autoliv by 26.0% in the second quarter. Massachusetts Financial Services Co. MA now owns 999,506 shares of the auto parts company's stock worth $111,845,000 after acquiring an additional 206,200 shares during the period. Hedge funds and other institutional investors own 69.57% of the company's stock.

Autoliv Company Profile

Autoliv, Inc, through its subsidiaries, develops, manufactures, and supplies passive safety systems to the automotive industry in Europe, the Americas, China, Japan, and rest of Asia. It offers passive safety systems, including modules and components for frontal-impact airbag protection systems, side-impact airbag protection systems, seatbelts, steering wheels, and inflator technologies.