Linamar (TSE:LNR) Reaches New 12-Month Low – Should You Sell?

Linamar Co. (TSE:LNR)’s share price hit a new 52-week low during trading on Wednesday . The company traded as low as C$54.88 and last traded at C$55.47, with a volume of 122825 shares changing hands. The stock had previously closed at C$57.21.

Analysts Set New Price Targets

A number of analysts have issued reports on the stock. TD Securities lowered shares of Linamar from a “buy” rating to a “hold” rating and cut their price target for the stock from C$89.00 to C$68.00 in a research note on Wednesday, November 13th. Scotiabank downgraded shares of Linamar from an “outperform” rating to a “sector perform” rating and cut their target price for the stock from C$86.00 to C$77.00 in a research note on Tuesday, October 29th. CIBC decreased their price target on shares of Linamar from C$85.00 to C$84.00 in a research report on Thursday, November 14th. BMO Capital Markets cut their price objective on Linamar from C$80.00 to C$75.00 in a research report on Wednesday, November 13th. Finally, Raymond James decreased their target price on Linamar from C$74.00 to C$70.00 in a report on Thursday, November 14th.

Linamar Stock Down 0.9 %

The firm’s fifty day simple moving average is C$59.22 and its 200 day simple moving average is C$62.35. The company has a current ratio of 1.68, a quick ratio of 0.75 and a debt-to-equity ratio of 46.32. The company has a market cap of C$3.37 billion, a price-to-earnings ratio of 5.59, a PEG ratio of 1.12 and a beta of 1.41.

Linamar (TSE:LNR) last issued its earnings results on Tuesday, November 12th. The company reported C$2.35 EPS for the quarter, topping analysts’ consensus estimates of C$2.15 by C$0.20. Linamar had a net margin of 5.77% and a return on equity of 11.31%. The firm had revenue of C$2.64 billion during the quarter, compared to the consensus estimate of C$2.75 billion. Sell-side analysts predict that Linamar Co. will post 11.4332724 earnings per share for the current year.

Insider Activity

In related news, Director Linda Hasenfratz purchased 50,000 shares of the stock in a transaction that occurred on Monday, December 16th. The shares were purchased at an average price of C$60.01 per share, with a total value of C$3,000,500.00. Also, insider Linamar Corporation bought 15,000 shares of the stock in a transaction on Monday, December 9th. The stock was bought at an average price of C$63.01 per share, for a total transaction of C$945,097.50. In the last 90 days, insiders have acquired 90,101 shares of company stock worth $5,475,561. 33.49% of the stock is currently owned by 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.