Linamar (TSE:LNR) Stock Rating Lowered by TD Securities

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

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

Linamar Price Performance

Shares of TSE:LNR traded down C$1.32 during trading hours on Thursday, hitting C$86.29. 154,742 shares of the company’s stock traded hands, compared to its average volume of 139,783. 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 30.14, a quick ratio of 0.75 and a current ratio of 1.88. The company’s fifty day simple moving average is C$94.61 and its two-hundred day simple moving average is C$94.99. The company has a market cap of C$5.09 billion, a price-to-earnings ratio of 7.53, a price-to-earnings-growth ratio of 1.12 and a beta of 1.53.

Linamar (TSE:LNR) last issued its earnings results on Wednesday, November 4th. The company reported C$2.59 earnings per share for the quarter. The firm had revenue of C$3.08 billion during the quarter. Linamar had a net margin of 5.69% and a return on equity of 10.39%. As a group, equities analysts anticipate that Linamar will post 11.43 EPS for the current fiscal year.

Insiders Place Their Bets

In other news, Director Mark Stoddart sold 18,932 shares of the firm’s stock in a transaction dated Tuesday, August 18th. The stock was sold at an average price of C$105.58, for a total value of C$1,998,840.56. Following the sale, the director directly owned 455,914 shares of the company’s stock, valued at approximately C$48,135,400.12. This trade represents a 3.99% decrease in their ownership of the stock. 33.49% of the stock is currently owned by corporate insiders.

Key Headlines Impacting Linamar

Here are the key news stories impacting Linamar this week:

• Positive Sentiment: Linamar reported higher third-quarter earnings and sales, with EPS of C$2.59 and revenue of C$3.08 billion. Linamar Reports Higher Earnings, Sales for Third Quarter
• Positive Sentiment: The company announced a buyback of 3,723,719 shares—6.38% of its issued share capital—which could support per-share value by reducing the share count. Linamar Announces an Equity Buyback
• Positive Sentiment: Linamar declared a quarterly dividend of $0.32 per share, equivalent to a $1.28 annualized payout and a reported 1.5% yield.
• Negative Sentiment: TD Securities (also identified as TD Cowen in coverage) lowered its rating to “hold” from “buy” or “strong-buy” and cut its price target to C$106 from C$120. The downgrade may temper investor expectations despite the target’s stated upside. TD Cowen Downgrades Linamar to Hold
• Negative Sentiment: Scotia reduced its price target to C$103 from C$111 and maintained a “sector perform” rating, signaling a more cautious outlook. Scotia stock recommendations

Linamar Company Profile

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.