Autoliv Inc. (ALV) Shares Soar 4.25% in Four Days on Buyback Plan

Autoliv Inc. (ALV) shares rose 0.99% intraday, reaching their highest level since July 2024, marking a fourth consecutive day of gains with a total increase of 4.25% over the past four days.

The strategy of buying ALV shares after they reached a recent high and holding for 1 week yielded moderate returns over the past 5 years, with a 5-year CAGR of 7.98%. While the strategy captured some of the subsequent mean reversion, it underperformed the overall market, as evidenced by the S&P 500's 10.78% CAGR over the same period. The Sharpe ratio was 0.73, indicating a reasonable risk-adjusted return. The strategy's beta was 1.05, suggesting it slightly underperformed the market in terms of volatility. Overall, the strategy provided a stable, if conservative, return profile.

Autoliv's stock price has been influenced by several recent developments. The company's Board of Directors approved a new stock repurchase program, authorizing the repurchase of up to $2.5 billion in shares. This program, effective from July 1, 2025, through December 31, 2029, aims to reduce the number of outstanding shares and potentially increase earnings per share, which could positively impact the stock price.

Additionally, Autoliv's stock has shown recent positive movement, with analysts setting new price targets. Morgan Stanley maintained a Hold rating and set a price target of $107.00 as of June 5, 2025. This indicates an active interest in Autoliv's stock and potential support for its price through strategic financial decisions and market reactions.