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 $45.52 target or 5.00% below today’s $47.92 share price. The 6 months technical chart setup indicates high risk for the $3.13 billion company. The gap down was reported on Nov, 11 by Barchart.com. If the $45.52 price target is reached, the company will be worth $156.50 million 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 84,052 shares traded hands. Linamar Corporation (TSE:LNR) has declined 15.46% since April 7, 2016 and is downtrending. It has underperformed by 21.60% 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. Linamar Corporation has been the topic of 22 analyst reports since July 29, 2015 according to StockzIntelligence Inc. The rating was maintained by RBC Capital Markets with “Sector Perform” on Friday, October 16. The rating was maintained by Scotia Capital on Friday, August 12 with “Outperform”. As per Thursday, November 3, the company rating was maintained by Scotia Capital. TD Securities maintained it with “Hold” rating and $57 target price in Friday, October 28 report. The company was upgraded on Tuesday, September 15 by Canaccord Genuity. TD Securities downgraded Linamar Corporation (TSE:LNR) rating on Thursday, August 6. TD Securities has “Buy” rating and $91 price target.

More notable recent Linamar Corporation (TSE:LNR) news were published by: Fool.ca which released: “Can Linamar Corporation Double From Here?” on July 07, 2016, also Fool.ca with their article: “Why Linamar Corporation Rose 10% in a Day” published on August 12, 2016, Fool.ca published: “Should You Buy Magna International Inc. or Linamar Corporation?” on April 18, 2016. More interesting news about Linamar Corporation (TSE:LNR) were released by: Fool.ca and their article: “The Not-So-Obvious Reason for Owning Linamar Corporation” published on May 10, 2016 as well as Fool.ca‘s news article titled: “Linamar Corporation: Why it Could Rise 50% After Reporting Earnings” with publication date: March 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 $3.13 billion. The Firm operates through two divisions: the Powertrain/Driveline and the Industrial. It has a 6.3 P/E ratio. The divisions are divided into four operating groups: Machining & Assembly, Light Metal Casting, Forging and Skyjack.

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