Magna International Inc. (NYSE:MGA) Given Consensus Recommendation of "Hold" by Brokerages

Key Points

• Analysts have a consensus “Hold” rating on Magna International, with nine holds, eight buys, one strong buy and one sell among 19 firms. The average 12-month price target is $68.20, near the stock’s reported $68.91 price.
• Magna exceeded quarterly expectations, reporting $1.86 in adjusted earnings per share versus the $1.53 consensus and revenue of $10.84 billion versus $10.63 billion expected. Revenue increased 3.3% year over year, while full-year EPS guidance stands at $6.70–$7.30.
• Institutional investors own 67.49% of the company, with several major funds increasing their positions. Magna also maintains a quarterly dividend of $0.495, equivalent to a 2.9% annualized yield.

Magna International Inc. (NYSE:MGA - Get Free Report) TSE: MG has earned an average recommendation of "Hold" from the nineteen research firms that are presently covering the firm, MarketBeat reports. One equities research analyst has rated the stock with a sell recommendation, nine have issued a hold recommendation, eight have issued a buy recommendation and one has given a strong buy recommendation to the company. The average 1-year price target among analysts that have issued a report on the stock in the last year is $68.20.

A number of equities research analysts have issued reports on the stock. Wells Fargo & Company boosted their target price on shares of Magna International from $62.00 to $67.00 and gave the company an "equal weight" rating in a report on Monday, August 3rd. JPMorgan Chase & Co. raised their price target on Magna International from $70.00 to $77.00 and gave the stock an "overweight" rating in a report on Monday, August 10th. Citigroup lifted their price target on Magna International from $58.00 to $75.00 and gave the company a "buy" rating in a research report on Thursday, June 4th. UBS Group increased their price objective on Magna International from $62.00 to $64.00 and gave the stock a "neutral" rating in a report on Thursday, July 9th. Finally, Wall Street Zen upgraded Magna International from a "buy" rating to a "strong-buy" rating in a research note on Saturday, August 29th.

Hedge Funds Weigh In On Magna International

Large investors have recently modified their holdings of the company. Geode Capital Management LLC increased its holdings in Magna International by 6.8% during the 4th quarter. Geode Capital Management LLC now owns 2,426,843 shares of the company's stock worth $128,774,000 after acquiring an additional 154,710 shares during the period. TD Waterhouse Canada Inc. boosted its holdings 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. Russell Investments Group Ltd. boosted its holdings in Magna International by 7.8% in the 4th quarter. Russell Investments Group Ltd. now owns 2,090,887 shares of the company's stock valued at $111,549,000 after purchasing an additional 151,819 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 purchasing an additional 71,927 shares in the last quarter. Finally, Hillsdale Investment Management Inc. increased its holdings in shares of Magna International by 14.8% in the first 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. 67.49% of the stock is currently owned by institutional investors.

Magna International Price Performance

NYSE MGA opened at $68.91 on Monday. 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 company has a market cap of $18.25 billion, a PE ratio of 24.97, a price-to-earnings-growth ratio of 0.73 and a beta of 1.45. Magna International has a 52 week low of $43.11 and a 52 week high of $73.22. The firm's 50-day simple moving average is $67.26 and its two-hundred day simple moving average is $63.40.

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

Magna International Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Friday, August 28th. Stockholders of record on Friday, August 14th were issued a $0.495 dividend. This represents a $1.98 dividend on an annualized basis and a dividend yield of 2.9%. The ex-dividend date of this dividend was Friday, August 14th. Magna International's dividend payout ratio is presently 71.74%.

About Magna International

Magna International Inc is a leading global automotive supplier specializing in the design, engineering, and manufacturing of vehicle systems, assemblies, modules, and components. Headquartered in Aurora, Ontario, the company partners with major original equipment manufacturers (OEMs) to develop technologies and solutions that enhance vehicle performance, safety, comfort, and fuel efficiency. Magna's broad portfolio encompasses body exteriors and structures, powertrain systems, seating and interiors, roof systems, mirror systems, and advanced driver assistance systems (ADAS).

The company operates more than 350 manufacturing and assembly facilities and over 100 innovation centers across 27 countries, serving customers in North America, Europe, Asia, South America, and Africa.

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