Autoliv (NYSE:ALV) Hits New 12-Month High - Still a 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.

Autoliv, Inc. (NYSE:ALV - Get Free Report)'s share price hit a new 52-week high during trading on Wednesday . The company traded as high as $126.10 and last traded at $125.19, with a volume of 86257 shares trading hands. The stock had previously closed at $124.40.

Analyst Upgrades and Downgrades

A number of analysts recently commented on ALV shares. Robert W. Baird decreased their target price on Autoliv from $126.00 to $124.00 and set a "neutral" rating for the company in a research report on Monday, July 21st. Jefferies Financial Group initiated coverage on Autoliv in a research note on Wednesday, July 2nd. They set a "buy" rating and a $140.00 price target for the company. Wall Street Zen upgraded Autoliv from a "buy" rating to a "strong-buy" rating in a research note on Saturday, July 26th. Royal Bank Of Canada initiated coverage on Autoliv in a research note on Wednesday, June 25th. They set an "outperform" rating and a $133.00 price target for the company. Finally, Wells Fargo & Company lifted their price target on Autoliv from $100.00 to $104.00 and gave the company an "equal weight" rating in a research note on Tuesday, July 1st. Two research analysts have rated the stock with a Strong Buy rating, twelve have assigned a Buy rating and five have assigned a Hold rating to the company. According to MarketBeat, the stock has an average rating of "Moderate Buy" and an average target price of $120.64.

Autoliv Price Performance

The business has a 50 day moving average price of $116.77 and a two-hundred day moving average price of $103.05. The stock has a market cap of $9.55 billion, a PE ratio of 13.61, a P/E/G ratio of 1.29 and a beta of 1.35. The company has a debt-to-equity ratio of 0.55, a quick ratio of 0.70 and a current ratio of 0.93.

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

Autoliv declared that its Board of Directors has authorized a share repurchase program on Wednesday, June 4th that allows the company to repurchase $2.50 billion in outstanding shares. This repurchase authorization allows the auto parts company to reacquire up to 31.3% of its stock through open market purchases. Stock repurchase programs are generally a sign that the company's leadership believes its shares are undervalued.

Insider Buying and Selling at Autoliv

In other news, Director Jan Carlson sold 1,555 shares of the business's stock in a transaction that occurred on Wednesday, June 11th. The stock was sold at an average price of $108.32, for a total value of $168,437.60. Following the transaction, the director owned 77,493 shares in the company, valued at $8,394,041.76. The trade was a 1.97% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. 0.30% of the stock is owned by insiders.

Hedge Funds Weigh In On Autoliv

Several institutional investors have recently bought and sold shares of ALV. First Trust Advisors LP purchased a new position in Autoliv in the fourth quarter valued at approximately $241,000. Northern Trust Corp lifted its stake in Autoliv by 18.8% in the fourth quarter. Northern Trust Corp now owns 495,188 shares of the auto parts company's stock valued at $46,444,000 after purchasing an additional 78,433 shares during the last quarter. Bank of America Corp DE lifted its stake in Autoliv by 40.6% in the fourth quarter. Bank of America Corp DE now owns 145,934 shares of the auto parts company's stock valued at $13,687,000 after purchasing an additional 42,150 shares during the last quarter. Balyasny Asset Management L.P. purchased a new position in Autoliv in the fourth quarter valued at approximately $25,749,000. Finally, Captrust Financial Advisors lifted its stake in Autoliv by 6.8% in the fourth quarter. Captrust Financial Advisors now owns 2,433 shares of the auto parts company's stock valued at $228,000 after purchasing an additional 155 shares during the last quarter. 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.

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