Linamar (TSE:LNR) Hits New 52-Week Low – Should You Sell?

Linamar Co. (TSE:LNR)’s share price reached a new 52-week low during trading on Friday . The company traded as low as C$56.70 and last traded at C$56.72, with a volume of 107160 shares changing hands. The stock had previously closed at C$56.97.

Analyst Ratings Changes

A number of research analysts have weighed in on the company. BMO Capital Markets reduced their price target on Linamar from C$90.00 to C$80.00 in a research note on Friday, August 9th. CIBC cut their price target on Linamar from C$92.00 to C$88.00 in a report on Friday, August 9th. Scotiabank cut shares of Linamar from an “outperform” rating to a “sector perform” rating and decreased their target price for the stock from C$86.00 to C$77.00 in a research report on Tuesday. Finally, TD Securities decreased their target price on shares of Linamar from C$92.00 to C$89.00 and set a “buy” rating for the company in a research report on Monday, September 30th. Two research analysts have rated the stock with a hold rating and three have given a buy rating to the company’s stock. According to data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus target price of C$81.60.

Linamar Trading Down 0.6 %

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 fifty day moving average of C$62.67 and a two-hundred day moving average of C$65.53. The stock has a market capitalization of C$3.49 billion, a price-to-earnings ratio of 5.81, a price-to-earnings-growth ratio of 1.12 and a beta of 1.41.

Linamar (TSE:LNR) last released its quarterly earnings results on Thursday, August 8th. The company reported C$3.06 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of C$2.70 by C$0.36. The company had revenue of C$2.85 billion during the quarter, compared to analysts’ expectations of C$2.92 billion. Linamar had a net margin of 5.77% and a return on equity of 11.31%. On average, research analysts expect that Linamar Co. will post 11.4332724 EPS for the current year.

Linamar Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Monday, September 9th. Stockholders of record on Friday, August 23rd were given a dividend of $0.25 per share. This represents a $1.00 dividend on an annualized basis and a dividend yield of 1.77%. The ex-dividend date of this dividend was Friday, August 23rd. Linamar’s dividend payout ratio is currently 10.20%.

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.