Autoliv (NYSE:ALV) Shares Gap Down - Time to Sell?

Autoliv, Inc. (NYSE:ALV - Get Free Report) gapped down prior to trading on Monday . The stock had previously closed at $113.10, but opened at $110.08. Autoliv shares last traded at $111.82, with a volume of 76,282 shares trading hands.

Analysts Set New Price Targets

Several research analysts have weighed in on the stock. BNP Paribas Exane upgraded shares of Autoliv from a "neutral" rating to an "outperform" rating and set a $123.00 price objective on the stock in a report on Friday, May 9th. Wells Fargo & Company lifted their price target on Autoliv from $82.00 to $100.00 and gave the company an "equal weight" rating in a research note on Monday, May 19th. Wall Street Zen raised Autoliv from a "hold" rating to a "buy" rating in a research report on Thursday, April 17th. Mizuho upped their target price on shares of Autoliv from $95.00 to $112.00 and gave the stock an "outperform" rating in a research note on Friday, May 16th. Finally, BNP Paribas raised shares of Autoliv from a "hold" rating to a "strong-buy" rating in a research report on Friday, May 9th. Six investment analysts have rated the stock with a hold rating, thirteen have assigned a buy rating and two have issued a strong buy rating to the stock. According to data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $115.27.

Autoliv Trading Down 1.1%

The company has a quick ratio of 0.73, a current ratio of 0.97 and a debt-to-equity ratio of 0.66. The stock's fifty day moving average price is $101.70 and its two-hundred day moving average price is $95.99. The company has a market capitalization of $8.64 billion, a PE ratio of 12.87, a price-to-earnings-growth ratio of 1.94 and a beta of 1.36.

Autoliv (NYSE:ALV - Get Free Report) last announced its quarterly earnings results on Wednesday, April 16th. The auto parts company reported $2.15 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.72 by $0.43. Autoliv had a return on equity of 30.47% and a net margin of 6.63%. The firm had revenue of $2.58 billion for the quarter, compared to the consensus estimate of $2.50 billion. During the same period in the prior year, the company posted $1.58 earnings per share. Sell-side analysts anticipate that Autoliv, Inc. will post 9.51 earnings per share for the current year.

Autoliv Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Tuesday, September 23rd. Shareholders of record on Friday, September 5th will be paid a dividend of $0.85 per share. This is an increase from Autoliv's previous quarterly dividend of $0.70. This represents a $3.40 dividend on an annualized basis and a dividend yield of 3.04%. The ex-dividend date of this dividend is Friday, September 5th. Autoliv's payout ratio is currently 32.22%.

Autoliv declared that its board has authorized a share repurchase plan on Wednesday, June 4th that permits the company to buyback $2.50 billion in outstanding shares. This buyback authorization permits the auto parts company to buy up to 31.3% of its stock through open market purchases. Stock buyback plans are often an indication that the company's board believes its shares are undervalued.

Insider Activity at Autoliv

In related news, Director Jan Carlson sold 1,555 shares of the firm's stock in a transaction on 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 transaction, the director directly owned 77,493 shares of the company's stock, 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 legal filing with the SEC, which is accessible through this link. 0.30% of the stock is owned by insiders.

Hedge Funds Weigh In On Autoliv

A number of institutional investors and hedge funds have recently made changes to their positions in ALV. Charles Schwab Investment Management Inc. grew its holdings in shares of Autoliv by 418.3% in the first quarter. Charles Schwab Investment Management Inc. now owns 2,483,726 shares of the auto parts company's stock worth $219,686,000 after purchasing an additional 2,004,515 shares during the last quarter. FMR LLC grew its holdings in Autoliv by 9.9% during the 4th quarter. FMR LLC now owns 7,146,500 shares of the auto parts company's stock worth $670,270,000 after acquiring an additional 641,895 shares in the last quarter. Norges Bank purchased a new position in Autoliv during the 4th quarter valued at about $36,761,000. FIL Ltd raised its holdings in shares of Autoliv by 17.3% in the 4th quarter. FIL Ltd now owns 2,382,265 shares of the auto parts company's stock valued at $223,433,000 after purchasing an additional 351,876 shares in the last quarter. Finally, Lancaster Investment Management increased its holdings in Autoliv by 58.8% during the first quarter. Lancaster Investment Management now owns 903,537 shares of the auto parts company's stock valued at $79,918,000 after buying an additional 334,716 shares during the period. 69.57% of the stock is owned by hedge funds and other institutional investors.

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.