Linamar (TSE:LNR) Sets New 52-Week High - Still a Buy?

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%.

Shares of Linamar Co. (TSE:LNR - Get Free Report) hit a new 52-week high during trading on Monday . The company traded as high as C$74.65 and last traded at C$74.61, with a volume of 42756 shares trading hands. The stock had previously closed at C$73.37.

Analysts Set New Price Targets

LNR has been the topic of a number of recent research reports. Scotiabank upped their price target on shares of Linamar from C$71.00 to C$80.00 and gave the company a "sector perform" rating in a research note on Thursday, August 14th. BMO Capital Markets upped their price target on shares of Linamar from C$75.00 to C$80.00 in a research note on Thursday, August 14th. CIBC upped their price target on shares of Linamar from C$57.00 to C$68.00 in a research note on Thursday, July 17th. Raymond James Financial upped their price target on shares of Linamar from C$70.00 to C$80.00 and gave the company a "market perform" rating in a research note on Thursday, August 14th. Finally, TD Securities upped their price target on shares of Linamar from C$78.00 to C$85.00 and gave the company a "buy" rating in a research note on Thursday, August 14th. One analyst has rated the stock with a Buy rating and four have issued a Hold rating to the stock. According to data from MarketBeat, Linamar has a consensus rating of "Hold" and a consensus target price of C$78.60.

Linamar Stock Up 1.5%

The company has a debt-to-equity ratio of 42.84, a quick ratio of 0.75 and a current ratio of 1.79. The firm has a market capitalization of C$4.56 billion, a PE ratio of 7.77, a PEG ratio of 1.12 and a beta of 1.41. The company's 50 day simple moving average is C$67.38 and its 200-day simple moving average is C$58.71.

Linamar Increases Dividend

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

Insider Transactions at Linamar

In other Linamar news, Senior Officer Csaba Havasi sold 4,000 shares of the stock in a transaction that occurred on Wednesday, May 28th. The shares were sold at an average price of C$61.96, for a total value of C$247,848.00. 33.49% of the stock is owned by corporate insiders.

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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