Magna International (NYSE:MGA) Stock Price Target Cut by Citigroup

Key Points

• Citigroup cut Magna International’s price target to $69 from $75 and maintained a neutral rating, implying 10.13% upside from the prior close.
• Analyst sentiment is broadly neutral: Magna has a consensus “Hold” rating and an average price target of $68.33.
• In its latest quarter, Magna beat EPS expectations with $1.83 per share versus $1.58 forecast, but revenue of $9.86 billion missed estimates and fell 3.9% year over year.

Magna International (NYSE:MGA - Get Free Report) TSE: MG had its price target cut by investment analysts at Citigroup from $75.00 to $69.00 in a report issued on Monday, Benzinga reports. The firm currently has a "neutral" rating on the stock. Citigroup's price objective would suggest a potential upside of 10.13% from the company's previous close.

Several other research analysts also recently commented on the stock. TD decreased their price target on shares of Magna International from $80.00 to $77.00 and set a "buy" rating on the stock in a research note on Thursday, October 8th. Morgan Stanley cut their target price on Magna International from $69.00 to $68.00 and set an "equal weight" rating on the stock in a research note on Thursday, October 15th. BMO Capital Markets cut Magna International from an "outperform" rating to a "market perform" rating and reduced their price objective for the company from $76.00 to $70.00 in a research report on Friday, September 18th. Wells Fargo & Company boosted 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. Finally, JPMorgan Chase & Co. downgraded shares of Magna International from an "overweight" rating to a "neutral" rating and lowered their target price for the stock from $77.00 to $72.00 in a report on Tuesday, September 15th. One equities research analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating, thirteen have issued a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, Magna International presently has a consensus rating of "Hold" and an average price target of $68.33.

Magna International Stock Performance

MGA stock traded up $0.79 during midday trading on Monday, hitting $62.65. The company's stock had a trading volume of 417,992 shares, compared to its average volume of 1,477,738. The stock has a market cap of $16.19 billion, a price-to-earnings ratio of 20.06, a PEG ratio of 0.66 and a beta of 1.46. The stock's 50-day moving average price is $64.64 and its 200 day moving average price is $62.86. The company has a quick ratio of 0.80, a current ratio of 1.14 and a debt-to-equity ratio of 0.33. 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 issued its earnings results on Friday, October 30th. The company reported $1.83 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.58 by $0.25. The business had revenue of $9.86 billion for the quarter, compared to analysts' expectations of $10.01 billion. Magna International had a net margin of 1.99% and a return on equity of 16.26%. The business's revenue for the quarter was down 3.9% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $1.33 EPS. On average, equities analysts forecast that Magna International will post 7.07 EPS for the current year.

Institutional Trading of Magna International

A number of hedge funds have recently bought and sold shares of MGA. ARGA Investment Management LP raised its holdings in shares of Magna International by 11.0% in the third quarter. ARGA Investment Management LP now owns 4,030,060 shares of the company's stock worth $256,706,000 after buying an additional 397,793 shares during the last quarter. Russell Investments Group Ltd. boosted its stake in shares of Magna International by 4.0% during the 3rd quarter. Russell Investments Group Ltd. now owns 2,183,383 shares of the company's stock worth $139,269,000 after acquiring an additional 84,978 shares in the last quarter. TD Waterhouse Canada Inc. grew its position in shares of Magna International by 10.7% during the 2nd quarter. TD Waterhouse Canada Inc. now owns 2,130,562 shares of the company's stock valued at $134,577,000 after acquiring an additional 206,433 shares during the period. Amundi grew 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 acquiring an additional 71,927 shares during the period. Finally, Hillsdale Investment Management Inc. increased its stake 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 valued at $46,486,000 after purchasing an additional 107,150 shares in the last quarter. Hedge funds and other institutional investors own 67.49% of the company's stock.

About Magna International

Magna International is a Canadian mobility technology supplier that designs and manufactures components, systems and complete vehicles for automakers. Its products and services support a range of vehicle types, including those with electric and advanced driver-assistance technologies.

The company's operations include body and exterior systems, seating, powertrain and electronics, as well as vehicle engineering and contract manufacturing. Its portfolio also includes products such as mirrors, lighting systems and roof systems.

Founded in 1957 by Frank Stronach as Multimatic, the company adopted the Magna name in 1973.

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