After Today’s Gap Down, Is Linamar Corporation’s Near-Term Analysis Negative?

 After Today's Gap Down, Is Linamar Corporation's Near Term Analysis Negative?

The stock of Linamar Corporation (TSE:LNR) gapped down by $0.07 today and has $44.98 target or 7.00% below today’s $48.37 share price. The 5 months technical chart setup indicates high risk for the $3.19B company. The gap down was reported on Nov, 9 by Barchart.com. If the $44.98 price target is reached, the company will be worth $223.30M less.
Gaps down are helpful for identifying a resistance level and to could also be used as a tradeable event. If traders are short the stock and it experiece gap down, then its usually advisable to hold the short for a bigger down move. Back-tests of such patterns show that two-thirds of the these patterns the stock performance worsens after the gap. The area gaps close 91% of the time, the breakaway gaps 1%, the continuation gaps 9% and the exhaustion gaps 64%. About 146,406 shares traded hands. Linamar Corporation (TSE:LNR) has declined 14.38% since April 5, 2016 and is downtrending. It has underperformed by 19.16% the S&P500.

Linamar Corporation (TSE:LNR) Ratings Coverage

Out of 5 analysts covering Linamar Corporation (TSE:LNR), 2 rate it a “Buy”, 0 “Sell”, while 3 “Hold”. This means 40% are positive. $100 is the highest target while $55 is the lowest. The $69.33 average target is 43.33% above today’s ($48.37) stock price. Linamar Corporation has been the topic of 22 analyst reports since July 29, 2015 according to StockzIntelligence Inc. The company was downgraded on Thursday, August 6 by TD Securities. The rating was upgraded by Canaccord Genuity on Tuesday, September 15 to “Buy”. RBC Capital Markets maintained Linamar Corporation (TSE:LNR) on Friday, October 16 with “Sector Perform” rating. Scotia Capital maintained Linamar Corporation (TSE:LNR) rating on Thursday, November 3. Scotia Capital has “Outperform” rating and $80 price target. Scotia Capital maintained Linamar Corporation (TSE:LNR) rating on Friday, August 12. Scotia Capital has “Outperform” rating and $80 price target. The firm has “Hold” rating by TD Securities given on Friday, October 28.

More notable recent Linamar Corporation (TSE:LNR) news were published by: Theglobeandmail.com which released: “The Globe and Mail” on July 15, 2010, also Fool.ca with their article: “Can Linamar Corporation Double From Here?” published on July 07, 2016, Fool.ca published: “Why Linamar Corporation Rose 10% in a Day” on August 12, 2016. More interesting news about Linamar Corporation (TSE:LNR) were released by: Fool.ca and their article: “Should You Buy Magna International Inc. or Linamar Corporation?” published on April 18, 2016 as well as Fool.ca‘s news article titled: “The Not-So-Obvious Reason for Owning Linamar Corporation” with publication date: May 10, 2016.

Linamar Corporation is a Canada-based diversified manufacturing firm of engineered products powering vehicles, motion, work and lives. The company has a market cap of $3.19 billion. The Firm operates through two divisions: the Powertrain/Driveline and the Industrial. It has a 6.36 P/E ratio. The divisions are divided into four operating groups: Machining & Assembly, Light Metal Casting, Forging and Skyjack.

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