Tuesday Ticker: April 21, 2020

Toronto, Ontario — In this week’s Tuesday Ticker, some major players in the automotive aftermarket find share-price stability after weeks of freefalling figures. Other businesses, however, adjust put pre-existing plans on hold while the pandemic runs its course.

Magna on Terra Firma

Magna International’s stock price has stabilized just above $50-per-share, up by about 25 percent over its March low.

The Ontario-based auto parts giant was one of the first major businesses to see its supply lines disrupted by the pandemic. In January, it temporarily closed a number of its Chinese manufacturing facilities in an effort to curb the virus’s impact.

Prior to the disruption, Magna’s stock was sitting at around $70. By the end of January, it sat closer to $67. As the Coronavirus pandemic caused widespread drops, the stock sank even further. By March 20, the stock sat below $37.50, a far cry from its $87 highs of mid-2018. Since April 9, however, it has been trading just about $50 on the TSX.

LKQ Lives On

The U.S.-based LKQ Corporation, which deals in alternative and specialty parts to repair facilities, is on the upswing after a brutal few weeks.

At the beginning of the year the parts giant’s stock sat at $35.39 U.S. By mid-March, its price dropped to just $16.30 U.S., a 45-percent fall.

On March 27, it saw its stock rise above $20 U.S., where it has remained.

Prior to the market disruptions of 2020, LKQ had last traded around the $20-mark in 2013. Before the 2020 global pandemic, its stock value had been notable for the steadiness of is rise.

Axalta Axes Idea

While LKQ and Magna International may be seeing their stocks find some stability in spite of the global pandemic, not every business involved in the automotive aftermarket is so lucky.

U.S.-based Axalta Coating Systems, which saw its stock drop in value by 30 percent in March, has cancelled its plans to place itself on the auction block as a result of its poor performance.

In a statement, Axalta’s chair, Mark Garrett, announced that the board had unanimously decided to shelve efforts to sell the company, “In light of the dislocation in global markets caused by the coronavirus pandemic.”

At the beginning of the year, Axalta’s stocks sold for just less than $30 U.S.

In late March, its stock hit its low-water point, with shares selling below $13 U.S.

Since that point, it has seen sharp rises and falls in its value. As of April 20, the stock was trading at around $17.30 U.S.