Autoliv (NYSE:ALV) Reaches New 52-Week High - What's Next?

Key Points

• Autoliv, Inc. reached a new 52-week high, trading at $119.05, with analysts forecasting an average price target of $120.64 and a consensus rating of "Moderate Buy."
• The company reported earnings of $2.21 per share, surpassing estimates, with a revenue of $2.71 billion for the quarter—a 4.2% increase year-over-year.
• Autoliv announced a quarterly dividend increase from $0.70 to $0.85 and has a share buyback plan of up to $2.50 billion, indicating strong confidence in its stock value.

Autoliv, Inc. (NYSE:ALV - Get Free Report) shares reached a new 52-week high on Thursday . The company traded as high as $119.05 and last traded at $118.91, with a volume of 400252 shares traded. The stock had previously closed at $118.81.

Wall Street Analyst Weigh In

A number of equities research analysts have weighed in on ALV shares. Wall Street Zen raised shares of Autoliv from a "buy" rating to a "strong-buy" rating in a report on Saturday, July 26th. Jefferies Financial Group started coverage on shares of Autoliv in a report on Wednesday, July 2nd. They set a "buy" rating and a $140.00 target price on the stock. Wells Fargo & Company boosted their target price on shares of Autoliv from $100.00 to $104.00 and gave the stock an "equal weight" rating in a report on Tuesday, July 1st. Royal Bank Of Canada initiated coverage on shares of Autoliv in a research note on Wednesday, June 25th. They issued an "outperform" rating and a $133.00 price objective on the stock. Finally, Mizuho upped their price objective on shares of Autoliv from $95.00 to $112.00 and gave the company an "outperform" rating in a research note on Friday, May 16th. Two investment analysts have rated the stock with a Strong Buy rating, twelve have given a Buy rating and five have assigned a Hold rating to the stock. According to MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus price target of $120.64.

Autoliv Stock Up 0.7%

The company has a current ratio of 0.93, a quick ratio of 0.70 and a debt-to-equity ratio of 0.55. The stock's 50-day moving average is $114.11 and its 200-day moving average is $101.00. The company has a market cap of $9.19 billion, a price-to-earnings ratio of 13.10, a P/E/G ratio of 1.23 and a beta of 1.39.

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

Autoliv Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Tuesday, September 23rd. Stockholders of record on Friday, September 5th will be issued a $0.85 dividend. This is an increase from Autoliv's previous quarterly dividend of $0.70. This represents a $3.40 annualized dividend and a dividend yield of 2.8%. The ex-dividend date is Friday, September 5th. Autoliv's dividend payout ratio is currently 30.63%.

Autoliv announced that its board has initiated a share repurchase program on Wednesday, June 4th that authorizes the company to buyback $2.50 billion in shares. This buyback authorization authorizes the auto parts company to reacquire up to 31.3% of its stock through open market purchases. Stock buyback programs are usually 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 firm's stock in a transaction dated Wednesday, June 11th. The shares were sold at an average price of $108.32, for a total transaction of $168,437.60. Following the completion of the sale, the director owned 77,493 shares in the company, valued at approximately $8,394,041.76. This trade represents a 1.97% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through this link. Company insiders own 0.30% of the company's stock.

Hedge Funds Weigh In On Autoliv

Several large investors have recently modified their holdings of the business. True Wealth Design LLC boosted its position in shares of Autoliv by 1,892.3% in the second quarter. True Wealth Design LLC now owns 259 shares of the auto parts company's stock valued at $29,000 after acquiring an additional 246 shares during the period. SouthState Corp bought a new stake in Autoliv during the first quarter valued at approximately $25,000. Mitsubishi UFJ Asset Management Co. Ltd. grew its stake in Autoliv by 103.5% in the 2nd quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 348 shares of the auto parts company's stock worth $39,000 after buying an additional 177 shares in the last quarter. GAMMA Investing LLC grew its stake in Autoliv by 122.9% in the 1st quarter. GAMMA Investing LLC now owns 370 shares of the auto parts company's stock worth $33,000 after buying an additional 204 shares in the last quarter. Finally, FNY Investment Advisers LLC purchased a new position in Autoliv in the 1st quarter worth approximately $44,000. Hedge funds and other 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.