Linamar (TSE:LNR) Stock Price Crosses Above 200 Day Moving Average - Should You Sell?

Key Points

• Linamar's stock price has recently crossed above its 200-day moving average of C$61.89, reaching a high of C$77.50 before settling at C$76.88.
• Several analysts have raised their target prices for Linamar shares, with average targets now around C$82.40, reflecting a consensus rating of "Moderate Buy."
• The company has increased its dividend to $0.29 per share from the previous $0.25, representing a $1.16 annualized dividend with a yield of 1.5%.

Linamar Co. (TSE:LNR - Get Free Report)'s share price crossed above its two hundred day moving average during trading on Friday . The stock has a two hundred day moving average of C$61.89 and traded as high as C$77.50. Linamar shares last traded at C$76.88, with a volume of 197,260 shares.

Wall Street Analysts Forecast Growth

Several brokerages have recently issued reports on LNR. CIBC raised shares of Linamar from a "neutral" rating to an "outperform" rating and boosted their price target for the company from C$77.00 to C$87.00 in a report on Tuesday, August 26th. Scotiabank upped their target price on Linamar from C$71.00 to C$80.00 and gave the stock a "sector perform" rating in a report on Thursday, August 14th. Raymond James Financial increased their price objective on shares of Linamar from C$70.00 to C$80.00 and gave the stock a "market perform" rating in a research report on Thursday, August 14th. Cibc World Mkts raised Linamar from a "hold" rating to a "strong-buy" rating in a report on Monday, August 25th. Finally, TD Securities increased their price target on Linamar from C$78.00 to C$85.00 and gave the stock a "buy" rating in a research note on Thursday, August 14th. One investment analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating and two have issued a Hold rating to the stock. Based on data from MarketBeat.com, Linamar currently has a consensus rating of "Moderate Buy" and a consensus price target of C$82.40.

Linamar Price Performance

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 stock has a 50-day moving average price of C$72.20 and a 200 day moving average price of C$62.21. The stock has a market capitalization of C$4.61 billion, a price-to-earnings ratio of 21.84, a PEG ratio of 1.12 and a beta of 1.78.

Linamar Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Tuesday, September 9th. Stockholders of record on Friday, August 22nd were given a dividend of $0.29 per share. This is a boost from Linamar's previous quarterly dividend of $0.25. This represents a $1.16 annualized dividend and a dividend yield of 1.5%. Linamar's payout ratio is 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.