Linamar (TSE:LNR) Reaches New 12-Month High - Here's What Happened

Key Points

• Linamar Co. shares reached a new 52-week high of C$77.94 during trading, reflecting a significant performance increase as it last traded at C$77.80.
• Analysts have largely upgraded their ratings for Linamar, with CIBC moving from "hold" to "strong-buy" and raising the price target to C$87.00, contributing to a consensus rating of "Moderate Buy."
• Linamar recently announced an increase in its quarterly dividend from $0.25 to $0.29, representing a 1.5% yield based on an annualized dividend of $1.16.

Linamar Co. (TSE:LNR - Get Free Report) shares hit a new 52-week high during mid-day trading on Thursday . The stock traded as high as C$77.94 and last traded at C$77.80, with a volume of 27512 shares traded. The stock had previously closed at C$76.98.

Analyst Upgrades and Downgrades

A number of equities analysts have commented on the stock. BMO Capital Markets lifted their price objective on shares of Linamar from C$75.00 to C$80.00 in a report on Thursday, August 14th. TD Securities lifted their price target on shares of Linamar from C$78.00 to C$85.00 and gave the company a "buy" rating in a report on Thursday, August 14th. Scotiabank increased their price objective on shares of Linamar from C$71.00 to C$80.00 and gave the stock a "sector perform" rating in a research note on Thursday, August 14th. Raymond James Financial raised their target price on shares of Linamar from C$70.00 to C$80.00 and gave the stock a "market perform" rating in a report on Thursday, August 14th. Finally, CIBC raised Linamar from a "neutral" rating to an "outperform" rating and upped their target price for the company from C$77.00 to C$87.00 in a report on Tuesday, August 26th. One research analyst has rated the stock with a Strong Buy rating, two have given a Buy rating and two have assigned a Hold rating to the company. According to MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average target price of C$82.40.

Linamar Stock Performance

The company has a market cap of C$4.61 billion, a P/E ratio of 21.82, a PEG ratio of 1.12 and a beta of 1.78. The stock has a fifty day moving average price of C$71.37 and a two-hundred day moving average price of C$61.41. The company has a debt-to-equity ratio of 42.84, a current ratio of 1.79 and a quick ratio of 0.75.

Linamar Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Tuesday, September 9th. Investors of record on Friday, August 22nd were paid a dividend of $0.29 per share. This is a boost from Linamar's previous quarterly dividend of $0.25. This represents a $1.16 dividend on an annualized basis and a dividend yield of 1.5%. Linamar's payout ratio is currently 29.46%.

Linamar Company Profile

Linamar Corporation, together with its subsidiaries, produces engineered products in Canada, Europe, the Asia Pacific, and rest of North America. It operates through two segments, Mobility and Industrial. The Mobility segment focuses on light metal casting, forging, machining, and assembly for electrified and powered vehicle markets.