Royal Bank Of Canada Has Lowered Expectations for Magna International (NYSE:MGA) Stock Price

Key Points

• Royal Bank of Canada lowered Magna International’s price target to $68 from $69 while maintaining a “sector perform” rating, implying approximately 6.6% upside.
• Analyst sentiment remains cautious: Magna has a consensus “Hold” rating and an average price target of $69.20, with most analysts maintaining hold or equal-weight recommendations.
• Magna reported quarterly EPS of $1.86, beating expectations of $1.53, while revenue reached $10.84 billion and rose 3.3% year over year. Institutional investors own 67.49% of the company.

Magna International (NYSE:MGA - Get Free Report) TSE: MG had its price target lowered by Royal Bank Of Canada from $69.00 to $68.00 in a note issued to investors on Monday, Benzinga reports. The brokerage presently has a "sector perform" rating on the stock. Royal Bank Of Canada's price objective points to a potential upside of 6.60% from the company's current price.

Several other analysts have also recently commented on the company. Weiss Ratings upgraded Magna International from a "hold (c)" rating to a "hold (c+)" rating in a report on Wednesday, July 29th. Barclays upped their price objective on shares of Magna International from $68.00 to $70.00 and gave the company an "equal weight" rating in a research note on Friday. 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 report on Monday, August 3rd. TD decreased their target price on shares of Magna International from $80.00 to $77.00 and set a "buy" rating on the stock in a research report on Thursday. Finally, BMO Capital Markets reissued a "market perform" rating and issued a $70.00 target price (down from $76.00) on shares of Magna International in a research report on Friday, September 18th. 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 given a Sell rating to the company. Based on data from MarketBeat, Magna International presently has a consensus rating of "Hold" and an average price target of $69.20.

Magna International Trading Down 0.3%

Shares of MGA stock traded down $0.20 during mid-day trading on Monday, hitting $63.79. 20,543 shares of the company's stock were exchanged, compared to its average volume of 1,510,441. Magna International has a fifty-two week low of $43.11 and a fifty-two week high of $73.22. The stock has a 50-day simple moving average of $66.63 and a two-hundred day simple moving average of $64.21. The company has a quick ratio of 0.88, a current ratio of 1.22 and a debt-to-equity ratio of 0.38. The stock has a market cap of $16.89 billion, a price-to-earnings ratio of 23.14, a PEG ratio of 0.68 and a beta of 1.46.

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

Institutional Investors Weigh In On Magna International

A number of institutional investors have recently added to or reduced their stakes in MGA. Hillsdale Investment Management Inc. lifted 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. Tidal Investments LLC grew its holdings in shares of Magna International by 57.4% during the 2nd quarter. Tidal Investments LLC now owns 55,783 shares of the company's stock worth $3,663,000 after purchasing an additional 20,347 shares during the period. Nykredit A S acquired a new stake in Magna International during the 2nd quarter worth approximately $4,695,000. Plato Investment Management Ltd acquired a new stake in Magna International during the 2nd quarter worth approximately $7,473,000. Finally, Public Employees Retirement System of Ohio increased its position in Magna International by 43.5% during the 1st quarter. Public Employees Retirement System of Ohio now owns 199,358 shares of the company's stock worth $11,095,000 after purchasing an additional 60,432 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 Canadian global automotive supplier that designs, engineers and manufactures systems and components for automakers. Its product portfolio includes vehicle body and exterior systems, seating, powertrain and drivetrain components, electronics, lighting, mirrors, roof systems and advanced driver-assistance technologies.

The company also provides complete vehicle engineering and manufacturing services, supporting automakers from product development through assembly.

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