BMO Capital Markets Reaffirms "Market Perform" Rating for Magna International (NYSE:MGA)

Key Points

• BMO Capital Markets reaffirmed its “Market Perform” rating on Magna International, while lowering its price target from $76 to $70, implying approximately 7.87% upside from the prior close.
• Analyst sentiment remains mixed but leans toward “Hold,” with a consensus price target of $69.07 based on one Strong Buy, six Buys, eleven Holds, and one Sell rating.
• Magna exceeded quarterly expectations, reporting $1.86 EPS versus the $1.53 estimate and $10.84 billion in revenue, up 3.3% year over year; institutional investors own 67.49% of the stock.

Magna International (NYSE:MGA - Get Free Report) TSE: MG's stock had its "market perform" rating reissued by equities researchers at BMO Capital Markets in a report released on Friday, Benzinga reports. They currently have a $70.00 price target on the stock, down from their previous price target of $76.00. BMO Capital Markets' target price points to a potential upside of 7.87% from the company's previous close.

MGA has been the topic of several other reports. Citigroup lifted their price target on Magna International from $58.00 to $75.00 and gave the stock a "buy" rating in a research note on Thursday, June 4th. Wells Fargo & Company increased their price objective on Magna International from $62.00 to $67.00 and gave the company an "equal weight" rating in a research note on Monday, August 3rd. Morgan Stanley raised their target price on shares of Magna International from $65.00 to $69.00 and gave the stock an "equal weight" rating in a report on Tuesday, August 18th. UBS Group lifted their target price on shares of Magna International from $62.00 to $64.00 and gave the stock a "neutral" rating in a research note on Thursday, July 9th. Finally, Wall Street Zen lowered shares of Magna International from a "strong-buy" rating to a "buy" rating in a report on Saturday, September 12th. One equities research analyst has rated the stock with a Strong Buy rating, six have given a Buy rating, eleven have assigned a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, the stock has an average rating of "Hold" and a consensus target price of $69.07.

Magna International Stock Performance

Magna International stock opened at $64.89 on Friday. The firm has a fifty day simple moving average of $67.51 and a two-hundred day simple moving average of $63.43. The company has a quick ratio of 0.88, a current ratio of 1.22 and a debt-to-equity ratio of 0.38. Magna International has a twelve month low of $43.11 and a twelve month high of $73.22. The company has a market capitalization of $17.19 billion, a PE ratio of 23.51, a P/E/G ratio of 0.68 and a beta of 1.45.

Magna International (NYSE:MGA - Get Free Report) TSE: MG last announced its quarterly earnings data on Friday, July 31st. The company reported $1.86 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.53 by $0.33. Magna International had a return on equity of 15.04% and a net margin of 1.80%.The firm had revenue of $10.84 billion for the quarter, compared to analysts' expectations of $10.63 billion. During the same period last year, the firm earned $1.44 earnings per share. The company's revenue for the quarter was up 3.3% compared to the same quarter last year. Magna International has set its FY 2026 guidance at 6.700-7.300 EPS. Research analysts expect that Magna International will post 7.06 EPS for the current year.

Institutional Investors Weigh In On Magna International

Several hedge funds have recently made changes to their positions in MGA. TD Waterhouse Canada Inc. grew its stake in Magna International by 10.7% in the second quarter. TD Waterhouse Canada Inc. now owns 2,130,562 shares of the company's stock worth $134,577,000 after purchasing an additional 206,433 shares during the period. Geode Capital Management LLC boosted its holdings in shares of Magna International by 6.8% during the 4th quarter. Geode Capital Management LLC now owns 2,426,843 shares of the company's stock valued at $128,774,000 after buying an additional 154,710 shares in the last quarter. Amundi grew its position in shares of Magna International by 4.2% in the 2nd quarter. Amundi now owns 1,781,357 shares of the company's stock worth $117,778,000 after buying an additional 71,927 shares during the period. Hillsdale Investment Management Inc. grew its position in shares of Magna International by 14.8% in the 1st quarter. Hillsdale Investment Management Inc. now owns 832,575 shares of the company's stock worth $46,486,000 after buying an additional 107,150 shares during the period. Finally, Bank of New York Mellon Corp bought a new position in shares of Magna International in the 2nd quarter worth about $28,495,000. 67.49% of the stock is currently owned by institutional investors.

About Magna International

Magna International Inc is a Canadian global automotive supplier headquartered in Aurora, Ontario. The company develops and manufactures components, systems and technologies for automakers, serving both traditional internal-combustion vehicle programs and electric-vehicle platforms.

Its principal business areas include body and exterior systems, structures and exteriors, powertrain and driveline systems, seating, electronic systems, advanced driver-assistance technologies and vehicle access systems.

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