Magna International Inc. (MGA) - What Are Brokerages Thinking About This Stock?

Key Points

• Analyst sentiment is neutral: Nineteen analysts assign Magna International an average “Hold” rating, with five buys, one strong buy, twelve holds and one sell. The average 12-month price target is $68.87, modestly above the reported share price of $63.92.
• Institutional ownership remains substantial: Institutional investors own 67.49% of the company, with several firms recently initiating or increasing positions, including TD Waterhouse Canada and QV Investors.
• Quarterly results exceeded expectations: Magna reported $1.86 in earnings per share versus the $1.53 consensus estimate, while revenue rose 3.3% year over year to $10.84 billion. The company also offers a $1.98 annualized dividend, yielding approximately 3.1%.

Magna International Inc. (NYSE:MGA - Get Free Report) TSE: MG has received an average recommendation of "Hold" from the nineteen analysts that are currently covering the stock, Marketbeat.com reports. One analyst has rated the stock with a sell rating, twelve have issued a hold rating, five have issued a buy rating and one has assigned a strong buy rating to the company. The average 12 month price target among analysts that have issued a report on the stock in the last year is $68.87.

MGA has been the topic of several analyst reports. Barclays lifted their target price on Magna International from $68.00 to $70.00 and gave the company an "equal weight" rating in a research report on Friday, October 9th. Weiss Ratings upgraded Magna International from a "hold (c)" rating to a "hold (c+)" rating in a research report on Wednesday, July 29th. Scotiabank upped their price target on Magna International from $74.00 to $78.00 and gave the stock a "sector outperform" rating in a research report on Monday, August 3rd. JPMorgan Chase & Co. reaffirmed a "neutral" rating and issued a $72.00 price objective (down from $77.00) on shares of Magna International in a research note on Tuesday, September 15th. Finally, Morgan Stanley lowered their price objective on Magna International from $69.00 to $68.00 and set an "equal weight" rating on the stock in a research report on Thursday, October 15th.

Institutional Investors Weigh In On Magna International

A number of institutional investors and hedge funds have recently added to or reduced their stakes in MGA. Bank of New York Mellon Corp purchased a new position in Magna International during the second quarter valued at approximately $28,495,000. TD Waterhouse Canada Inc. increased its stake in shares of 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 in the last quarter. QV Investors Inc. increased its stake in shares of Magna International by 33.3% in the third quarter. QV Investors Inc. now owns 739,472 shares of the company's stock worth $47,220,000 after purchasing an additional 184,631 shares in the last quarter. Public Employees Retirement System of Ohio purchased a new stake in shares of Magna International in the second quarter worth $9,160,000. Finally, Plato Investment Management Ltd bought a new stake in shares of Magna International during the 2nd quarter valued at $7,473,000. Institutional investors own 67.49% of the company's stock.

Magna International Trading Down 0.1%

Shares of Magna International stock opened at $63.92 on Tuesday. Magna International has a 1-year low of $44.64 and a 1-year high of $73.22. The company's fifty day simple moving average is $65.57 and its 200-day simple moving average is $62.50. 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 stock has a market capitalization of $16.93 billion, a PE ratio of 23.16, a P/E/G ratio of 0.68 and a beta of 1.46.

Magna International (NYSE:MGA - Get Free Report) TSE: MG last posted its quarterly earnings data on Friday, July 31st. The company reported $1.86 EPS for the quarter, topping the consensus estimate 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 during the quarter, compared to analyst estimates of $10.63 billion. During the same period in the prior year, the business posted $1.44 EPS. Magna International's revenue was up 3.3% on a year-over-year basis. Magna International has set its FY 2026 guidance at 6.700-7.300 EPS. As a group, equities analysts anticipate that Magna International will post 7.03 earnings per share for the current year.

Magna International Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Friday, August 28th. Investors of record on Friday, August 14th were issued a $0.4950 dividend. This represents a $1.98 annualized dividend and a yield of 3.1%. The ex-dividend date of this dividend was Friday, August 14th. Magna International's dividend payout ratio is currently 71.74%.

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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