Linamar (TSE:LNR) Reaches 12-Month Low Following Analyst Downgrade

Linamar Corporation (TSE:LNR - Get Free Report) saw its shares drop to a new 52-week low on Friday after TD Securities revised their outlook for the stock, lowering the price target from C$68.00 to C$66.00. TD Securities maintains a hold rating on the stock. During trading, the share price reached as low as C$52.63 before settling at C$52.82 with a trading volume of 104,330 shares, compared to its previous close of C$52.84.

Other analysts have also reassessed their ratings for Linamar. Scotiabank downgraded Linamar from an "outperform" rating to a "sector perform" rating and reduced their price target from C$86.00 to C$77.00 in a report issued on October 29. Raymond James similarly adjusted their price target from C$74.00 to C$70.00 on November 14. CIBC lowered their target from C$85.00 to C$82.00, while BMO Capital Markets cut their price objective from C$80.00 to C$75.00 in notes published on November 13.

Insider Activities at Linamar

In recent developments regarding insider transactions, Director Linda Hasenfratz acquired 50,000 shares of Linamar stock in a purchase made on December 16 at an average price of C$60.01 per share, totaling approximately C$3,000,500. Additionally, Linamar Corporation itself bought 15,000 shares on December 9 at an average price of C$63.01, valued at about C$945,097.50. In total, insiders have purchased 90,101 shares valued at $5,475,561 over the last three months, which indicates that corporate insiders hold 33.49% of the company's stock.

Linamar Stock Performance

Linamar's stock is currently valued with a market capitalization of C$3.24 billion. It has a price-to-earnings ratio of 5.52, a PEG ratio of 1.12, and a beta value of 1.41. Financial ratios include a debt-to-equity ratio of 42.84, a current ratio of 1.79, and a quick ratio of 0.75. Its fifty-day moving average stands at C$57.13, while its 200-day moving average is C$60.41.

Recently, Linamar also reported its earnings on November 12, where it posted earnings of C$2.35 per share for the latest quarter, exceeding analysts' expectations of C$2.15 by C$0.20. However, the company's revenue of C$2.64 billion for the quarter fell short of the anticipated C$2.75 billion. The company’s net profit margin was reported at 5.58%, with a return on equity of 10.73%. Analysts predict that Linamar Corporation will achieve earnings per share of approximately 11.43 for the current fiscal year.

Overview of Linamar Corporation

Linamar Corporation, along with its subsidiaries, is engaged in manufacturing engineered products in various geographical locations including Canada, Europe, Asia Pacific, and North America. The company operates primarily through two segments: Mobility and Industrial. The Mobility segment is dedicated to light metal casting, forging, machining, and assembly aimed at electrified and powered vehicle markets.

Linamar, Analyst, Downgrade