Magna International Inc. (NYSE:MGA) Receives Average Rating of “Hold” from Analysts

Shares of Magna International Inc. (NYSE:MGA) (TSE:MG) have been given an average rating of “Hold” by the nineteen research firms that are currently covering the company, MarketBeat Ratings reports. One analyst has rated the stock with a sell recommendation, thirteen have given a hold recommendation and five have assigned a buy recommendation to the company. The average 12-month price target among brokerages that have updated their coverage on the stock in the last year is $47.03.

Several equities research analysts have recently commented on MGA shares. CIBC lowered their target price on Magna International from $44.00 to $36.50 and set a “neutral” rating for the company in a research note on Wednesday. Scotiabank lowered their target price on Magna International from $49.00 to $45.00 and set a “sector perform” rating for the company in a research note on Tuesday, February 18th. Wells Fargo & Company lowered their target price on Magna International from $46.00 to $44.00 and set an “equal weight” rating for the company in a research note on Monday, December 16th. The Goldman Sachs Group cut Magna International from a “neutral” rating to a “sell” rating and lowered their target price for the company from $42.00 to $41.00 in a research note on Wednesday, December 11th. Finally, Wolfe Research raised Magna International from an “underperform” rating to a “peer perform” rating in a research note on Thursday, December 5th.

Magna International Trading Up 8.0 %

MGA stock opened at $36.86 on Thursday. The business has a fifty day moving average price of $39.66 and a 200 day moving average price of $41.45. Magna International has a fifty-two week low of $33.30 and a fifty-two week high of $56.12. The stock has a market capitalization of $10.40 billion, a price-to-earnings ratio of 10.50, a P/E/G ratio of 0.63 and a beta of 1.65. The company has a debt-to-equity ratio of 0.35, a current ratio of 1.08 and a quick ratio of 0.77.

Magna International (NYSE:MGA) (TSE:MG) last released its quarterly earnings results on Friday, February 14th. The company reported $1.69 earnings per share for the quarter, beating analysts’ consensus estimates of $1.46 by $0.23. Magna International had a return on equity of 12.78% and a net margin of 2.36%. The firm had revenue of $10.63 billion during the quarter, compared to analysts’ expectations of $10.32 billion. During the same period last year, the firm posted $1.33 EPS. The business’s revenue was up 1.7% on a year-over-year basis. Analysts expect that Magna International will post 5.87 EPS for the current fiscal year.

Magna International Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, March 14th. Shareholders of record on Friday, February 28th will be issued a dividend of $0.485 per share. The ex-dividend date of this dividend is Friday, February 28th. This is a positive change from Magna International’s previous quarterly dividend of $0.48. This represents a $1.94 annualized dividend and a yield of 5.26%. Magna International’s payout ratio is currently 55.27%.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently added to or reduced their stakes in MGA. ARGA Investment Management LP lifted its holdings in Magna International by 158.1% during the fourth quarter. ARGA Investment Management LP now owns 2,561,491 shares of the company’s stock worth $107,049,000 after acquiring an additional 1,568,953 shares in the last quarter. Russell Investments Group Ltd. lifted its holdings in Magna International by 52.3% during the fourth quarter. Russell Investments Group Ltd. now owns 2,395,373 shares of the company’s stock worth $100,087,000 after acquiring an additional 822,375 shares in the last quarter. Geode Capital Management LLC lifted its holdings in Magna International by 32.2% during the fourth quarter. Geode Capital Management LLC now owns 1,523,196 shares of the company’s stock worth $63,280,000 after acquiring an additional 371,437 shares in the last quarter. Mufg Securities Canada LTD. lifted its holdings in Magna International by 72.1% during the fourth quarter. Mufg Securities Canada LTD. now owns 412,454 shares of the company’s stock worth $17,228,000 after acquiring an additional 172,754 shares in the last quarter. Finally, BNP Paribas Financial Markets lifted its holdings in shares of Magna International by 117,113.9% in the third quarter. BNP Paribas Financial Markets now owns 84,394 shares of the company’s stock valued at $3,464,000 after purchasing an additional 84,322 shares in the last quarter. 67.49% of the stock is currently owned by institutional investors.

About Magna International

Magna International Inc designs, engineers, and manufactures components, assemblies, systems, subsystems, and modules for original equipment manufacturers of vehicles and light trucks worldwide. It operates through four segments: Body Exteriors & Structures, Power & Vision, Seating Systems, and Complete Vehicles.