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

Key Points

• Linamar shares recently crossed above their 200-day moving average, trading as high as C$75.33 before settling at C$75.01.
• Analysts have shown increased confidence in Linamar, with multiple firms raising their target prices and one analyst giving it a Strong Buy rating.
• The company has also announced a dividend increase, raising its quarterly dividend from $0.25 to $0.29 per share, representing an annual yield of 1.5%.

Linamar Co. (TSE:LNR - Get Free Report) shares crossed above its 200-day moving average during trading on Monday . The stock has a 200-day moving average of C$63.03 and traded as high as C$75.33. Linamar shares last traded at C$75.01, with a volume of 71,987 shares trading hands.

Wall Street Analysts Forecast Growth

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

Linamar Stock Performance

The business has a fifty day simple moving average of C$73.03 and a two-hundred day simple moving average of C$63.03. 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 cap of C$4.49 billion, a PE ratio of 21.25, a price-to-earnings-growth ratio of 1.12 and a beta of 1.78.

Linamar Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Tuesday, September 9th. Shareholders of record on Friday, August 22nd were issued a dividend of $0.29 per share. This represents a $1.16 dividend on an annualized basis and a yield of 1.5%. This is a positive change from Linamar's previous quarterly dividend of $0.25. Linamar's dividend payout ratio is currently 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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