Autoliv (ALV) Upgraded to Hold at Zacks Investment Research
Zacks Investment Research upgraded shares of Autoliv (NYSE:ALV) from a sell rating to a hold rating in a research note released on Monday.
According to Zacks, “Autoliv has set a sales target of more than $10 billion and approximately 13% adjusted operating margin by 2020 on the back of new product launches and improving demand for light vehicles. Moreover, strong sales growth in China, India, ASEAN and South America will help the company drive its financials. Further, it actively pursues capital deployment strategies to enhance shareholder confidence. The company also follows acquisitions and joint ventures to expand its business and widen its product offering. However, new tariffs and rise in commodity prices might hurt Autoliv’s profit margin. Further, new emission standards and emissions-testing procedure in Europe are expected to hamper vehicle sales in Europe and North America. Also, in the last three months, shares of the company have underperformed the industry it belongs to.”
ALV has been the subject of several other research reports. Longbow Research set a $168.00 price objective on Autoliv and gave the company a buy rating in a report on Friday, June 1st. Morgan Stanley initiated coverage on Autoliv in a report on Tuesday, June 19th. They issued an overweight rating and a $180.00 price objective for the company. Barclays decreased their price objective on Autoliv from $82.00 to $80.00 and set an underweight rating for the company in a report on Tuesday, July 31st. Royal Bank of Canada restated a hold rating and issued a $107.00 price target on shares of Autoliv in a research note on Friday, July 27th. Finally, UBS Group upgraded Autoliv from a sell rating to a neutral rating and set a $107.00 price target for the company in a research note on Tuesday, July 3rd. Three equities research analysts have rated the stock with a sell rating, twelve have assigned a hold rating and ten have issued a buy rating to the stock. The stock currently has an average rating of Hold and a consensus price target of $123.35.
Autoliv (NYSE:ALV) last issued its quarterly earnings data on Friday, July 27th. The auto parts company reported $2.22 earnings per share (EPS) for the quarter, beating the Thomson Reuters’ consensus estimate of $1.88 by $0.34. The business had revenue of $2.21 billion during the quarter, compared to analysts’ expectations of $2.23 billion. Autoliv had a return on equity of 17.38% and a net margin of 3.09%. The company’s revenue for the quarter was up 11.5% on a year-over-year basis. During the same quarter in the previous year, the firm posted $1.50 EPS. equities research analysts expect that Autoliv will post 7.96 earnings per share for the current fiscal year.
The firm also recently declared a quarterly dividend, which will be paid on Thursday, December 6th. Investors of record on Wednesday, November 21st will be paid a $0.62 dividend. The ex-dividend date of this dividend is Tuesday, November 20th. This represents a $2.48 annualized dividend and a dividend yield of 2.83%. Autoliv’s dividend payout ratio is presently 37.69%.
In related news, Director Jan Carlson sold 42,589 shares of Autoliv stock in a transaction dated Friday, August 31st. The stock was sold at an average price of $89.53, for a total value of $3,812,993.17. Following the completion of the transaction, the director now owns 53,579 shares in the company, valued at approximately $4,796,927.87. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. 0.25% of the stock is owned by insiders.
Large investors have recently bought and sold shares of the business. Nomura Asset Management Co. Ltd. increased its stake in Autoliv by 7.1% during the 2nd quarter. Nomura Asset Management Co. Ltd. now owns 14,837 shares of the auto parts company’s stock worth $2,125,000 after buying an additional 981 shares in the last quarter. BlackRock Inc. grew its position in shares of Autoliv by 6.7% in the second quarter. BlackRock Inc. now owns 2,958,591 shares of the auto parts company’s stock valued at $423,729,000 after purchasing an additional 186,407 shares in the last quarter. Wells Fargo & Company MN grew its position in shares of Autoliv by 23.1% in the first quarter. Wells Fargo & Company MN now owns 32,926 shares of the auto parts company’s stock valued at $4,806,000 after purchasing an additional 6,178 shares in the last quarter. Dimensional Fund Advisors LP grew its position in shares of Autoliv by 2.2% in the first quarter. Dimensional Fund Advisors LP now owns 994,398 shares of the auto parts company’s stock valued at $145,122,000 after purchasing an additional 21,569 shares in the last quarter. Finally, Aperio Group LLC grew its position in shares of Autoliv by 3.9% in the second quarter. Aperio Group LLC now owns 14,476 shares of the auto parts company’s stock valued at $2,073,000 after purchasing an additional 546 shares in the last quarter. Institutional investors own 40.40% of the company’s stock.
Autoliv Company Profile
Autoliv, Inc, through its subsidiaries, develops, manufactures, and supplies automotive safety systems to the automotive industry worldwide. The company operates through two segments, Passive Safety and Electronics. It offers modules and components for frontal-impact airbag protection systems, side-impact airbag protection systems, seatbelts, steering wheels, inflator technologies, battery cable cutters, pedestrian protection systems, and child seats.
Further Reading: Return on Equity (ROE)
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