Autoliv (NYSE:ALV) Shares Gap Up Following Better-Than-Expected Earnings

Shares of Autoliv, Inc. (NYSE:ALV - Get Free Report) gapped up prior to trading on Wednesday after the company announced better than expected quarterly earnings. The stock had previously closed at $82.24, but opened at $86.11. Autoliv shares last traded at $88.54, with a volume of 555,900 shares changing hands.

The auto parts company reported $2.15 EPS for the quarter, beating analysts' consensus estimates of $1.72 by $0.43. Autoliv had a return on equity of 28.62% and a net margin of 6.21%. The firm had revenue of $2.58 billion for the quarter, compared to analysts' expectations of $2.50 billion. During the same period in the prior year, the firm posted $1.58 earnings per share.

Autoliv Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Monday, March 24th. Shareholders of record on Friday, March 7th were given a $0.70 dividend. The ex-dividend date of this dividend was Friday, March 7th. This represents a $2.80 dividend on an annualized basis and a yield of 3.24%. Autoliv's payout ratio is currently 32.22%.

Wall Street Analyst Weigh In

Several equities analysts have recently commented on the stock. StockNews.com upgraded shares of Autoliv from a "hold" rating to a "buy" rating in a report on Thursday. Daiwa America upgraded Autoliv from a "hold" rating to a "strong-buy" rating in a report on Tuesday, January 7th. Barclays raised Autoliv from an "equal weight" rating to an "overweight" rating and decreased their target price for the stock from $110.00 to $97.00 in a research note on Tuesday. Wells Fargo & Company reduced their price target on shares of Autoliv from $84.00 to $82.00 and set an "equal weight" rating on the stock in a research report on Thursday. Finally, Cowen began coverage on shares of Autoliv in a research note on Thursday, March 6th. They set a "buy" rating on the stock. Eight analysts have rated the stock with a hold rating, eleven have issued a buy rating and one has assigned a strong buy rating to the company's stock. According to data from MarketBeat, Autoliv has a consensus rating of "Moderate Buy" and a consensus price target of $112.64.

Insider Activity

In related news, EVP Per Jonas Jademyr sold 401 shares of the company's stock in a transaction on Tuesday, February 25th. The shares were sold at an average price of $98.85, for a total value of $39,638.85. Following the completion of the sale, the executive vice president now owns 685 shares in the company, valued at $67,712.25. This represents a 36.92 % decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, insider Magnus Jarlegren sold 1,289 shares of Autoliv stock in a transaction on Tuesday, February 25th. The shares were sold at an average price of $98.83, for a total transaction of $127,391.87. Following the completion of the transaction, the insider now owns 6,142 shares in the company, valued at approximately $607,013.86. This represents a 17.35 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last three months, insiders sold 9,253 shares of company stock valued at $915,534. Insiders own 0.20% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently modified their holdings of the stock. FMR LLC grew its position in Autoliv by 9.9% in the 4th quarter. FMR LLC now owns 7,146,500 shares of the auto parts company's stock valued at $670,270,000 after buying an additional 641,895 shares during the last quarter. FIL Ltd increased its stake in shares of Autoliv by 17.3% during the fourth quarter. FIL Ltd now owns 2,382,265 shares of the auto parts company's stock worth $223,433,000 after acquiring an additional 351,876 shares during the period. Dimensional Fund Advisors LP raised its holdings in Autoliv by 9.0% during the fourth quarter. Dimensional Fund Advisors LP now owns 1,623,600 shares of the auto parts company's stock worth $152,275,000 after purchasing an additional 134,347 shares in the last quarter. Mondrian Investment Partners LTD lifted its position in Autoliv by 4.5% in the fourth quarter. Mondrian Investment Partners LTD now owns 1,378,636 shares of the auto parts company's stock valued at $133,259,000 after purchasing an additional 59,592 shares during the period. Finally, Wellington Management Group LLP boosted its holdings in Autoliv by 12.5% in the 4th quarter. Wellington Management Group LLP now owns 1,023,937 shares of the auto parts company's stock valued at $96,035,000 after purchasing an additional 113,500 shares in the last quarter. 69.57% of the stock is currently owned by hedge funds and other institutional investors.

Autoliv Price Performance

The company has a market cap of $6.69 billion, a price-to-earnings ratio of 10.71, a PEG ratio of 0.73 and a beta of 1.47. The company has a 50-day simple moving average of $90.74 and a 200-day simple moving average of $94.32. The company has a debt-to-equity ratio of 0.67, a quick ratio of 0.71 and a current ratio of 0.96.

Autoliv Company Profile

Autoliv, Inc, through its subsidiaries, develops, manufactures, and supplies passive safety systems to the automotive industry in Europe, the Americas, China, Japan, and rest of Asia. It offers passive safety systems, including modules and components for frontal-impact airbag protection systems, side-impact airbag protection systems, seatbelts, steering wheels, and inflator technologies.