Autoliv (NYSE:ALV) Hits New 52-Week High - Time to Buy?

Key Points

• Autoliv's stock reached a new 52-week high of $126.96 during trading, indicating strong market interest and potential for growth.
• Several analysts have updated their price targets for Autoliv, with targets ranging from $104.00 to $135.00, reflecting a generally positive outlook on the company's performance.
• The company announced a significant $2.50 billion stock buyback program as part of their strategy to enhance shareholder value, suggesting confidence in their stock valuation.

Autoliv, Inc. (NYSE:ALV - Get Free Report)'s stock price reached a new 52-week high during mid-day trading on Tuesday . The company traded as high as $126.96 and last traded at $126.83, with a volume of 424741 shares changing hands. The stock had previously closed at $124.69.

Analysts Set New Price Targets

A number of research firms have issued reports on ALV. Royal Bank Of Canada began coverage on Autoliv in a research note on Wednesday, June 25th. They issued an "outperform" rating and a $133.00 target price for the company. Barclays restated an "overweight" rating and issued a $135.00 price target (up from $105.00) on shares of Autoliv in a report on Wednesday, July 16th. Wells Fargo & Company boosted their price target on Autoliv from $100.00 to $104.00 and gave the company an "equal weight" rating in a report on Tuesday, July 1st. Wall Street Zen upgraded Autoliv from a "buy" rating to a "strong-buy" rating in a report on Saturday, July 26th. Finally, Mizuho boosted their price target on Autoliv from $95.00 to $112.00 and gave the company an "outperform" rating in a report on Friday, May 16th. Two analysts have rated the stock with a Strong Buy rating, eleven have given a Buy rating and five have given a Hold rating to the stock. According to MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average target price of $120.69.

Autoliv Stock Up 1.7%

The firm has a market cap of $9.74 billion, a P/E ratio of 13.88, a price-to-earnings-growth ratio of 1.29 and a beta of 1.34. The company has a quick ratio of 0.70, a current ratio of 0.93 and a debt-to-equity ratio of 0.55. The firm has a fifty day moving average of $117.86 and a 200-day moving average of $103.82.

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

Autoliv announced that its board has initiated a stock repurchase program on Wednesday, June 4th that authorizes the company to buyback $2.50 billion in outstanding shares. This buyback authorization authorizes the auto parts company to buy up to 31.3% of its stock through open market purchases. Stock buyback programs are typically a sign that the company's board believes its stock is undervalued.

Insider Transactions at Autoliv

In related 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 transaction of $168,437.60. Following the sale, the director owned 77,493 shares in the company, valued at approximately $8,394,041.76. This represents a 1.97% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Insiders own 0.30% of the company's stock.

Institutional Trading of Autoliv

Several institutional investors and hedge funds have recently bought and sold shares of the stock. Charles Schwab Investment Management Inc. raised its holdings in Autoliv by 1.4% during 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 acquiring an additional 34,064 shares in the last quarter. Swedbank AB raised its stake in Autoliv by 26.3% in the second quarter. Swedbank AB now owns 2,397,735 shares of the auto parts company's stock valued at $268,307,000 after buying an additional 499,411 shares during the period. Dimensional Fund Advisors LP raised its stake in 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 valued at $164,257,000 after buying an additional 233,469 shares during the period. LSV Asset Management raised its stake in Autoliv by 83.3% in the second quarter. LSV Asset Management now owns 1,020,082 shares of the auto parts company's stock valued at $114,147,000 after buying an additional 463,449 shares during the period. Finally, Massachusetts Financial Services Co. MA raised its stake in 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 valued at $111,845,000 after buying an additional 206,200 shares during the period. Institutional investors own 69.57% of the company's stock.

About Autoliv

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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