Linamar (TSE:LNR) Sets New 52-Week High Following Analyst Upgrade

Key Points

• Shares of Linamar Co. hit a new 52-week high at C$74.65, with a closing rate of C$74.61 and trading volume of 42,756 shares.
• Analysts have raised their price targets for Linamar, with targets ranging from C$68.00 to C$85.00 and a consensus target price of C$78.60.
• Linamar announced an increase in its quarterly dividend to $0.29 per share, representing an annualized amount of $1.16 and a yield of 1.6%.

Linamar Co. (TSE:LNR - Get Free Report) shares hit a new 52-week high during mid-day trading on Monday after Cibc World Mkts upgraded the stock from a hold rating to a strong-buy rating. The company traded as high as C$74.65 and last traded at C$74.61, with a volume of 42756 shares traded. The stock had previously closed at C$73.37.

Other research analysts have also issued reports about the company. 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 report on Thursday, August 14th. CIBC upgraded Linamar from a "neutral" rating to an "outperform" rating and increased their price objective for the company from C$77.00 to C$87.00 in a research report on Tuesday. BMO Capital Markets increased their price objective on Linamar from C$75.00 to C$80.00 in a research report on Thursday, August 14th. 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 report on Thursday, August 14th. 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 report on Thursday, August 14th. One analyst has rated the stock with a Strong Buy rating, two have given a Buy rating and two have given a Hold rating to the company's stock. Based on data from MarketBeat.com, Linamar currently has a consensus rating of "Moderate Buy" and an average price target of C$82.40.

Linamar Stock Performance

The stock has a 50 day moving average price of C$68.52 and a two-hundred day moving average price of C$59.38. The company has a current ratio of 1.79, a quick ratio of 0.75 and a debt-to-equity ratio of 42.84. The company has a market cap of C$4.48 billion, a price-to-earnings ratio of 21.24, a P/E/G ratio of 1.12 and a beta of 1.67.

Linamar Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 9th. Investors of record on Friday, August 22nd will be paid a dividend of $0.29 per share. This represents a $1.16 annualized dividend and a yield of 1.5%. This is an increase from Linamar's previous quarterly dividend of $0.25. Linamar's dividend payout ratio (DPR) 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.