Magna International (NYSE:MGA) Stock Price Target Cut by Royal Bank Of Canada

Key Points

• Royal Bank of Canada cut Magna International’s price target from $68 to $66 while maintaining a “sector perform” rating, implying roughly 0.04% downside from the stock’s current price.
• Analyst sentiment is broadly cautious: MarketBeat reports an average rating of “Hold” and an average price target of $68.73, with 12 analysts rating the stock Hold.
• Magna’s latest quarterly results beat expectations on earnings, reporting $1.83 in EPS versus the $1.58 consensus, although revenue of $9.86 billion declined 3.9% year over year and missed estimates.

Magna International (NYSE:MGA - Get Free Report) TSE: MG had its price objective reduced by stock analysts at Royal Bank Of Canada from $68.00 to $66.00 in a note issued to investors on Monday, Benzinga reports. The firm presently has a "sector perform" rating on the stock. Royal Bank Of Canada's price objective suggests a potential downside of 0.04% from the stock's current price.

MGA has been the topic of several other research reports. UBS Group raised their price objective on Magna International from $62.00 to $64.00 and gave the company a "neutral" rating in a research report on Thursday, July 9th. BMO Capital Markets cut shares of Magna International from an "outperform" rating to a "market perform" rating and decreased their price target for the company from $76.00 to $70.00 in a research report on Friday, September 18th. Scotiabank boosted their price objective on Magna International from $74.00 to $78.00 and gave the company a "sector outperform" rating in a research note on Monday, August 3rd. Morgan Stanley reduced their price objective on Magna International from $69.00 to $68.00 and set an "equal weight" rating for the company in a research note on Thursday, October 15th. Finally, Canadian Imperial Bank of Commerce cut Magna International from an "outperformer" rating to a "hold" rating and dropped their price objective for the company from $78.00 to $70.00 in a research note on Wednesday, October 21st. One investment analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating, twelve have issued a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, the company currently has an average rating of "Hold" and an average target price of $68.73.

Magna International Price Performance

NYSE MGA traded up $2.20 on Monday, hitting $66.02. 168,201 shares of the company were exchanged, compared to its average volume of 1,486,733. The company has a market cap of $17.14 billion, a P/E ratio of 21.15, a P/E/G ratio of 0.68 and a beta of 1.46. The company has a current ratio of 1.22, a quick ratio of 0.88 and a debt-to-equity ratio of 0.38. The firm has a 50 day moving average of $65.04 and a two-hundred day moving average of $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 issued its earnings results on Friday, October 30th. The company reported $1.83 EPS for the quarter, beating the consensus estimate of $1.58 by $0.25. The company had revenue of $9.86 billion during 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 16.10%. 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 company posted $1.33 EPS. On average, equities analysts predict that Magna International will post 7.03 EPS for the current year.

Hedge Funds Weigh In On Magna International

Large investors have recently modified their holdings of the stock. Hillsdale Investment Management Inc. grew its position 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 buying an additional 107,150 shares in the last quarter. Tidal Investments LLC boosted its holdings in shares of Magna International by 57.4% in the 2nd quarter. Tidal Investments LLC now owns 55,783 shares of the company's stock valued at $3,663,000 after acquiring an additional 20,347 shares during the last quarter. Nykredit A S acquired a new position in Magna International in the second quarter valued at approximately $4,695,000. Plato Investment Management Ltd purchased a new stake in shares of Magna International in the second quarter valued at approximately $7,473,000. Finally, QV Investors Inc. increased its holdings in Magna International by 33.3% in the 3rd quarter. QV Investors Inc. now owns 739,472 shares of the company's stock worth $47,220,000 after acquiring an additional 184,631 shares in the last quarter. Hedge funds and other institutional investors own 67.49% of the company's stock.

About Magna International

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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