Linamar (TSE:LNR) Hits New 1-Year Low – Here’s Why

Shares of Linamar Co. (TSE:LNR) hit a new 52-week low during trading on Monday . The company traded as low as C$51.55 and last traded at C$53.50, with a volume of 156375 shares trading hands. The stock had previously closed at C$56.54.

Wall Street Analysts Forecast Growth

Several equities research analysts have issued reports on the company. BMO Capital Markets dropped their target price on Linamar from C$80.00 to C$75.00 in a research report on Wednesday, November 13th. Scotiabank downgraded 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 set a C$85.00 price target on shares of Linamar and gave the stock an “outperform” rating in a report on Monday, January 13th. TD Securities lowered shares of Linamar from a “buy” rating to a “hold” rating and cut their price objective for the company from C$89.00 to C$68.00 in a research report on Wednesday, November 13th. Finally, Raymond James decreased their target price on shares of Linamar from C$74.00 to C$70.00 in a report on Thursday, November 14th.

Linamar Trading Down 5.3 %

The stock has a 50-day moving average price of C$58.60 and a 200-day moving average price of C$61.37. The stock has a market cap of C$3.30 billion, a P/E ratio of 5.47, a P/E/G ratio of 1.12 and a beta of 1.41. The company has a debt-to-equity ratio of 46.32, a quick ratio of 0.75 and a current ratio of 1.68.

Linamar (TSE:LNR) last released its earnings results on Tuesday, November 12th. The company reported C$2.35 EPS for the quarter, beating analysts’ consensus estimates of C$2.15 by C$0.20. Linamar had a return on equity of 11.31% and a net margin of 5.77%. The business had revenue of C$2.64 billion for the quarter, compared to analysts’ expectations of C$2.75 billion. On average, equities research analysts expect that Linamar Co. will post 11.4332724 EPS for the current year.

Insiders Place Their Bets

In other news, Director Linda Hasenfratz bought 50,000 shares of the firm’s stock in a transaction that occurred on Monday, December 16th. The shares were bought at an average cost of C$60.01 per share, with a total value of C$3,000,500.00. Also, insider Linamar Corporation purchased 25,101 shares of the company’s stock in a transaction on Friday, November 29th. The shares were purchased at an average cost of C$60.95 per share, with a total value of C$1,529,963.68. Insiders bought a total of 90,101 shares of company stock valued at $5,475,561 over the last quarter. 33.49% of the stock is owned by corporate insiders.

Linamar Company Profile

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.