Linamar (TSE:LNR) Hits New 12-Month High - Time to Buy?

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)'s share price reached a new 52-week high during 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 trading hands. The stock had previously closed at C$76.98.

Analyst Ratings Changes

Several research firms have commented on LNR. Cibc World Mkts upgraded Linamar from a "hold" rating to a "strong-buy" rating in a research report on Monday, August 25th. CIBC upgraded Linamar from a "neutral" rating to an "outperform" rating and raised their price objective for the stock from C$77.00 to C$87.00 in a research report on Tuesday, August 26th. BMO Capital Markets raised their price objective on Linamar from C$75.00 to C$80.00 in a research report on Thursday, August 14th. TD Securities raised their price objective on Linamar from C$78.00 to C$85.00 and gave the stock a "buy" rating in a research report on Thursday, August 14th. Finally, Raymond James Financial raised their price objective on Linamar from C$70.00 to C$80.00 and gave the stock a "market perform" rating in a research report on Thursday, August 14th. One analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating and two have issued a Hold rating to the company. According to MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of C$82.40.

Linamar Stock Performance

The firm has a market capitalization of C$4.65 billion, a P/E ratio of 22.03, a P/E/G ratio of 1.12 and a beta of 1.78. The stock has a fifty day simple moving average of C$70.42 and a two-hundred day simple moving average of C$60.67. 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 firm also recently announced a quarterly dividend, which was paid on Tuesday, September 9th. Shareholders of record on Friday, August 22nd were issued a $0.29 dividend. This is an increase from Linamar's previous quarterly dividend of $0.25. This represents a $1.16 dividend on an annualized basis and a yield of 1.5%. Linamar's payout ratio is presently 29.46%.

About Linamar

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.

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