Take off with Autoliv Inc. (ALV): Get ready for trading

Autoliv Inc. (NYSE: ALV) stock fell -2.49% on Friday to $71.34 against a previous-day closing price of $73.16. With 1.13 million shares changed hands, the volume of the stock remained heavier than its average volume of 0.63 million shares. During the session, the Auto Parts company that operates in wider Consumer Cyclical sector, reached to the highest price of $73.57 whereas the lowest price it dropped to was $70.97. The 52-week range on ALV shows that it touched its highest point at $110.59 and its lowest point at $66.25 during that stretch. It currently has a 1-year price target of $92.21. With its current market cap of 6.22 billion, ALV has annualized dividend of $2.56 while the current yield stands at 3.59%. Beta for the stock currently stands at 1.68.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of ALV was down-trending over the past week, with a drop of -4.85%, but this was down by -6.92% over a month. Three-month performance dropped to -4.77% while six-month performance fell -8.17%. The stock lost -13.92% in the past year, while it has lost -31.01% so far this year. A look at the trailing 12-month EPS for ALV yields 3.84 with Next year EPS estimates of 7.59. For the next quarter, that number is 1.26. This implies an EPS growth rate of 132.70% for this year and 74.11% for next year. EPS is expected to grow by 25.39% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of -4.70%.

Float and Shares Shorts:

At present, 87.20 million ALV shares are outstanding with a float of 86.78 million shares on hand for trading. On Aug 30, 2022, short shares totaled 1.09 million, which was 1.25% higher than short shares on Jul 28, 2022. In addition to Mr. Mikael Bratt as the firm’s Pres, CEO & Director, Mr. Fredrik Westin serves as its CFO & EVP of Fin.

Institutional Ownership:

Through their ownership of 62.02% of ALV’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 7.90% of ALV, in contrast to 25.56% held by mutual funds. Shares owned by individuals account for 24.85%. As the largest shareholder in ALV with 7.23% of the stake, Cevian Capital AB holds 6,298,508 shares worth 6,298,508. A second-largest stockholder of ALV, Fidelity Management & Research Co, holds 3,209,481 shares, controlling over 3.69% of the firm’s shares. FIL Investment Advisors is the third largest shareholder in ALV, holding 2,533,419 shares or 2.91% stake. With a 1.39% stake in ALV, the AMF Aktiefond Sverige is the largest stakeholder. A total of 1,210,235 shares are owned by the mutual fund manager. The Fidelity Inv. Trust – Series Inte, which owns about 1.36% of ALV stock, is the second-largest Mutual Fund holder. It holds 1,182,334 shares valued at 91.97 million. Vanguard Extended Market Index Fu holds 1.23% of the stake in ALV, owning 1,066,432 shares worth 82.96 million.

An Overview of Recent Financials:

Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Jun 29, 2022, ALV reported revenue of $2.08B and operating income of $124.00M. Over the past year, revenue came in at $8.17B while operating income stood at $532.00M. It generated $79.00M net income for the quarter, which came to $336.00M over the last twelve months. The EBITDA in the recently reported quarter was $221.00M and diluted EPS was $0.91. EBITDA for the full year was $916.00M.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for ALV since 25 analysts follow the stock currently. There are 12 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 12 believe that the stock is worth HOLDING, 1 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With ALV analysts setting a high price target of $120.00 and a low target of $79.00, the average target price over the next 12 months is $92.16. Based on these targets, ALV could surge 68.21% to reach the target high and rise by 10.74% to reach the target low. Reaching the average price target will result in a growth of 29.18% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. ALV will report FY 2022 earnings on 01/31/2023. Analysts have provided yearly estimates in a range of $5.05 being high and $3.98 being low. For ALV, this leads to a yearly average estimate of $4.38. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Autoliv Inc. surprised analysts by $0.57 when it reported $0.90 EPS against a consensus estimate of $0.33. The surprise factor in the prior quarter was -$0.62. Based on analyst estimates, the high estimate for the next quarter is $1.49 and the low estimate is $1.00. The average estimate for the next quarter is thus $1.23.

Summary of Insider Activity:

Insiders traded ALV stock several times over the past three months with 10 Buys and 4 Sells. In these transactions, 270,479 shares were bought while 2,527 shares were sold. The number of buy transactions has increased to 43 while that of sell transactions has risen to 20 over the past year. The total number of shares bought during that period was 319,371 while 13,233 shares were sold.

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