Magna International (NYSE:MGA) Stock Moved Down to Hold by Wall Street Zen

Key Points

• Wall Street Zen downgraded Magna International to “Hold” from “Buy.” The broader analyst consensus is also “Hold,” with 12 Hold ratings and an average price target of $68.87.
• Magna’s latest quarter beat earnings expectations, reporting EPS of $1.83 versus the $1.58 consensus estimate, although revenue fell 3.9% year over year to $9.86 billion.
• Shares opened at $63.71, while the company faces weaker vehicle production and lowered sales guidance; however, institutional investors own 67.49% of the stock and several major funds increased their holdings.

Magna International (NYSE:MGA - Get Free Report) TSE: MG was downgraded by analysts at Wall Street Zen from a "buy" rating to a "hold" rating in a report issued on Saturday, Wall Street Zen reports.

Several other research analysts have also issued reports on the stock. Canadian Imperial Bank of Commerce lowered shares of Magna International from an "outperformer" rating to a "hold" rating and cut their target price for the stock from $78.00 to $70.00 in a research note on Wednesday, October 21st. Royal Bank Of Canada dropped their price objective on shares of Magna International from $69.00 to $68.00 and set a "sector perform" rating on the stock in a report on Monday, October 12th. Wells Fargo & Company increased their price objective on shares of Magna International from $62.00 to $67.00 and gave the stock an "equal weight" rating in a research report on Monday, August 3rd. TD reduced their target price on Magna International from $80.00 to $77.00 and set a "buy" rating for the company in a research note on Thursday, October 8th. Finally, BMO Capital Markets lowered Magna International from an "outperform" rating to a "market perform" rating and decreased their target price for the company from $76.00 to $70.00 in a research report on Friday, September 18th. One investment analyst has rated the stock with a Strong Buy rating, five have given a Buy rating, twelve have assigned a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, Magna International presently has an average rating of "Hold" and an average target price of $68.87.

Magna International Stock Down 1.5%

Shares of NYSE:MGA opened at $63.71 on Friday. The company has a market capitalization of $16.54 billion, a price-to-earnings ratio of 23.08, a P/E/G ratio of 0.69 and a beta of 1.46. The company has a debt-to-equity ratio of 0.38, a current ratio of 1.22 and a quick ratio of 0.88. The business's 50-day moving average is $65.04 and its 200-day moving average is $62.66. Magna International has a 1 year low of $45.33 and a 1 year high of $73.22.

Magna International (NYSE:MGA - Get Free Report) TSE: MG last released its earnings results on Friday, October 30th. The company reported $1.83 EPS for the quarter, topping the consensus estimate of $1.58 by $0.25. The business had revenue of $9.86 billion during the quarter, compared to analysts' expectations of $10.01 billion. Magna International had a return on equity of 15.04% and a net margin of 1.80%. The firm's revenue was down 3.9% on a year-over-year basis. During the same quarter last year, the firm posted $1.33 earnings per share. Equities research analysts predict that Magna International will post 7.03 earnings per share for the current year.

Hedge Funds Weigh In On Magna International

Several large investors have recently added to or reduced their stakes in the business. ARGA Investment Management LP lifted its holdings in Magna International by 11.0% during the third quarter. ARGA Investment Management LP now owns 4,030,060 shares of the company's stock worth $256,706,000 after acquiring an additional 397,793 shares during the period. TD Waterhouse Canada Inc. grew its stake in Magna International by 10.7% in the 2nd quarter. TD Waterhouse Canada Inc. now owns 2,130,562 shares of the company's stock valued at $134,577,000 after purchasing an additional 206,433 shares during the period. Amundi increased its position in shares of Magna International by 4.2% during the 2nd quarter. Amundi now owns 1,781,357 shares of the company's stock valued at $117,778,000 after purchasing an additional 71,927 shares during the last quarter. QV Investors Inc. increased its position in shares of Magna International by 33.3% during the 3rd quarter. QV Investors Inc. now owns 739,472 shares of the company's stock valued at $47,220,000 after purchasing an additional 184,631 shares during the last quarter. Finally, Hillsdale Investment Management Inc. raised its stake in shares of Magna International by 14.8% during the 1st quarter. Hillsdale Investment Management Inc. now owns 832,575 shares of the company's stock worth $46,486,000 after purchasing an additional 107,150 shares during the period. Institutional investors own 67.49% of the company's stock.

Magna International News Summary

Here are the key news stories impacting Magna International this week:

• Positive Sentiment: Earnings materially exceeded estimates. Adjusted EPS rose 38% year over year to $1.83, above the $1.58 consensus estimate, while reported diluted EPS increased 33% to $1.44. Magna tops Q3 earnings and revenue estimates
• Positive Sentiment: Margins and operating performance improved. Adjusted EBIT increased 11% to $683 million, and the adjusted EBIT margin expanded 90 basis points to 6.8%, driven by productivity initiatives, restructuring benefits, favorable commercial items, and lower tariff costs. Magna Q3 2026 margins rise as revenue softens
• Positive Sentiment: Cash returns and capital allocation support the shares. Magna returned $658 million to shareholders during the quarter and authorized a new buyback program covering up to 10% of its public float over the next 12 months. The company also raised its 2026 free-cash-flow outlook to $1.85 billion-$1.90 billion. Magna announces strong third-quarter results
• Neutral Sentiment: Management reaffirmed the midpoint of its 2026 adjusted EPS outlook at $6.85-$7.15 and narrowed the adjusted EBIT margin range to 6.3%-6.5%, suggesting confidence in profitability but less certainty around the operating range.
• Negative Sentiment: Revenue declined and the sales outlook was reduced. Third-quarter sales fell 4% to $10.1 billion as North American and Chinese vehicle production declined, programs ended, and recent divestitures reduced revenue. Full-year sales guidance was lowered to $41.2 billion-$42.0 billion, partly reflecting weaker expected production in China and unfavorable program mix. Magna Q3 adjusted earnings rise while sales fall

Magna International Company Profile

Magna International Inc is a global automotive supplier headquartered in Aurora, Ontario, Canada. The company designs, engineers and manufactures components and systems for automakers, serving vehicle manufacturers across North America, Europe and Asia.

Its products and services span several automotive categories, including body and chassis structures, exterior systems, powertrain and driveline components, seating, vehicle electronics, lighting, mirrors, and advanced driver assistance technologies.

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