Linamar (TSE:LNR) Share Price Crosses Above 200-Day Moving Average - Time to Sell?

Key Points

• Linamar's share price has crossed above its 200-day moving average of C$63.92, reaching a high of C$76.30 during trading.
• Analysts have increased their target prices for Linamar, with many setting a new target of C$80.00 and one firm upgrading the rating from "hold" to "strong-buy.
• The company has announced a dividend increase to $0.29 per share, up from $0.25, representing an annualized yield of 1.6%.

Linamar Co. (TSE:LNR - Get Free Report) shares crossed above its two hundred day moving average during trading on Tuesday . The stock has a two hundred day moving average of C$63.92 and traded as high as C$76.30. Linamar shares last traded at C$73.02, with a volume of 102,387 shares changing hands.

Analysts Set New Price Targets

A number of research firms have recently commented on LNR. BMO Capital Markets increased their target price on Linamar from C$75.00 to C$80.00 in a research report on Thursday, August 14th. Scotiabank increased their target price 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. Raymond James Financial increased their target price 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. TD Securities increased their target price 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. Finally, Cibc World Mkts upgraded Linamar from a "hold" rating to a "strong-buy" rating in a research report on Monday, August 25th. 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, the company currently has an average rating of "Moderate Buy" and an average target price of C$82.40.

Linamar Stock Down 3.2%

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 company has a fifty day moving average of C$73.84 and a two-hundred day moving average of C$63.92. The company has a market cap of C$4.37 billion, a PE ratio of 20.69, a price-to-earnings-growth ratio of 1.12 and a beta of 1.66.

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 paid a $0.29 dividend. This is a positive change from Linamar's previous quarterly dividend of $0.25. This represents a $1.16 dividend on an annualized basis and a yield of 1.6%. Linamar's dividend payout ratio (DPR) is presently 29.46%.

About Linamar

Linamar Corp is a diversified global manufacturing company of highly engineered products. The Company's Industrial segment operates the Skyjack and MacDon brands, It manufactures products for the Aerial Work Platform and Agricultural industries, respectively. The Mobility segment features vertically integrated operations to combine expertise in light metal casting, forging, machining and assembly of components and systems for electric and traditional vehicle applications.

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