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

Key Points

• Linamar Corporation achieved a new 52-week high of C$70.52, trading with a volume of 13,471 shares, up from a previous close of C$69.19.
• Multiple research firms have upgraded their target prices for Linamar, with Scotiabank raising it to C$66.00 and TD Securities increasing it to C$66.00 as well, marking a shift in analyst sentiment.
• The company's market capitalization stands at C$4.30 billion, with a P/E ratio of 7.33, indicating strong valuation metrics compared to its industry peers.

Linamar Co. (TSE:LNR - Get Free Report) shares reached a new 52-week high during trading on Tuesday . The stock traded as high as C$70.52 and last traded at C$70.52, with a volume of 13471 shares traded. The stock had previously closed at C$69.19.

Analyst Ratings Changes

Several research analysts have recently commented on LNR shares. CIBC raised their price target on Linamar from C$57.00 to C$68.00 in a research report on Thursday, July 17th. BMO Capital Markets increased their price objective on Linamar from C$75.00 to C$80.00 in a research note on Thursday. Raymond James Financial increased their price objective on Linamar from C$70.00 to C$80.00 and gave the company a "market perform" rating in a research note on Thursday. Scotiabank increased their price objective on Linamar from C$71.00 to C$80.00 and gave the company a "sector perform" rating in a research note on Thursday. Finally, TD Securities increased their price objective on Linamar from C$78.00 to C$85.00 and gave the company a "buy" rating in a research note on Thursday. Four analysts have rated the stock with a hold rating and one has issued a buy rating to the company's stock. According to MarketBeat, Linamar currently has an average rating of "Hold" and an average target price of C$78.60.

Linamar Stock Performance

The company has a debt-to-equity ratio of 42.84, a current ratio of 1.79 and a quick ratio of 0.75. The company has a market capitalization of C$4.48 billion, a price-to-earnings ratio of 7.64, a PEG ratio of 1.12 and a beta of 1.41. The stock has a 50 day simple moving average of C$66.49 and a two-hundred day simple moving average of C$58.10.

Linamar Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Tuesday, September 9th. Stockholders of record on Friday, August 22nd will be given a dividend of $0.29 per share. This represents a $1.16 dividend on an annualized basis and a dividend yield of 1.6%. This is a boost from Linamar's previous quarterly dividend of $0.25. Linamar's payout ratio is 10.44%.

Insider Activity at Linamar

In other news, Senior Officer Csaba Havasi sold 4,000 shares of Linamar stock in a transaction dated Wednesday, May 28th. The stock was sold at an average price of C$61.96, for a total transaction of C$247,848.00. Company insiders own 33.49% of the company's stock.

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.