Linamar (TSE:LNR) Stock Gets Downgrade from TD Securities

Linamar (TSE:LNR) was downgraded by investment analysts at TD Securities from a “strong-buy” rating to a “hold” rating in a note issued to investors on Thursday, Zacks reports.

Several other analysts have also recently commented on LNR. Scotia dropped their target price on shares of Linamar from C$111.00 to C$103.00 and set a “sector perform” rating for the company in a research report on Thursday. BMO Capital Markets downgraded Linamar from an “outperform” rating to a “hold” rating and set a C$105.00 price objective for the company. in a report on Friday, September 18th. Canadian Imperial Bank of Commerce raised their target price on Linamar from C$115.00 to C$120.00 in a report on Thursday, August 13th. TD lowered Linamar from a “buy” rating to a “hold” rating and decreased their target price for the stock from C$120.00 to C$106.00 in a research report on Thursday. Finally, Scotiabank increased their price target on shares of Linamar from C$102.00 to C$114.00 and gave the company a “sector perform” rating in a research report on Thursday, August 13th. One research analyst has rated the stock with a Buy rating and six have given a Hold rating to the stock. According to data from MarketBeat, the company has an average rating of “Hold” and a consensus target price of C$108.86.

Linamar Stock Down 5.6%

TSE LNR opened at C$87.61 on Thursday. The stock has a market capitalization of C$5.17 billion, a P/E ratio of 7.64, a price-to-earnings-growth ratio of 1.12 and a beta of 1.53. Linamar has a 52 week low of C$73.27 and a 52 week high of C$110.58. The company has a debt-to-equity ratio of 32.89, a quick ratio of 0.75 and a current ratio of 1.88. The stock has a fifty day moving average of C$94.85 and a 200-day moving average of C$94.99.

Linamar (TSE:LNR) last posted its quarterly earnings results on Wednesday, November 4th. The company reported C$2.59 earnings per share for the quarter. Linamar had a net margin of 6.15% and a return on equity of 10.96%. The business had revenue of C$3.08 billion during the quarter. On average, equities research analysts forecast that Linamar will post 11.43 EPS for the current year.

Insiders Place Their Bets

In other news, Director Mark Stoddart sold 18,932 shares of the stock in a transaction dated Tuesday, August 18th. The shares were sold at an average price of C$105.58, for a total transaction of C$1,998,840.56. Following the completion of the transaction, the director directly owned 455,914 shares in the company, valued at C$48,135,400.12. This represents a 3.99% decrease in their position. Company insiders own 33.49% of the company’s stock.

Linamar News Roundup

Here are the key news stories impacting Linamar this week:

• Positive Sentiment: Third-quarter results showed EPS of C$2.59 on revenue of C$3.08 billion; reports characterized both earnings and sales as higher. Linamar Reports Higher Earnings, Sales for Third Quarter
• Positive Sentiment: Linamar announced a buyback of up to 3,723,719 shares, equal to 6.38% of its issued share capital. Repurchases can support per-share earnings and signal confidence in the company’s value. Linamar Corporation announces an Equity Buyback
• Positive Sentiment: The company declared a quarterly dividend of C$0.32 per share, equivalent to C$1.28 annually and a yield of about 1.5%.
• Negative Sentiment: TD Cowen lowered its rating from “buy” to “hold” and cut its price target from C$120 to C$106. Scotia also reduced its target, from C$111 to C$103, while maintaining a “sector perform” rating. The target cuts and more cautious ratings may weigh on sentiment, despite both targets remaining above the recent share price. TD Cowen Downgrades Linamar to Hold

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. In addition, McLaren Engineering and eLIN Product Solutions Group provide design, development, and testing services for the Mobility segment.