ARGA Investment Management LP Has $210.61 Million Position in Magna International Inc. $MGA

Key Points

• ARGA Investment Management trimmed its Magna International stake by 10.1% in the first quarter, but still held 3.77 million shares valued at about $210.6 million. Magna remains its fourth-largest position and makes up 6.9% of the firm’s holdings.
• Wall Street sentiment is mixed: analysts currently rate Magna a consensus “Hold” with an average price target of $65.60. Recent moves included price-target increases from TD and Citigroup, while Zacks downgraded the stock to Hold.
• Magna reported solid quarterly results, posting $1.38 EPS versus the $1.01 estimate and 3.1% year-over-year revenue growth. The company also pays a quarterly dividend of $0.495, yielding about 3.1%.

ARGA Investment Management LP reduced its position in shares of Magna International Inc. (NYSE:MGA - Free Report) TSE: MG by 10.1% during the first quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor owned 3,771,359 shares of the company's stock after selling 421,770 shares during the period. Magna International accounts for about 6.9% of ARGA Investment Management LP's holdings, making the stock its 4th biggest position. ARGA Investment Management LP owned approximately 1.37% of Magna International worth $210,606,000 at the end of the most recent reporting period.

Several other hedge funds and other institutional investors have also added to or reduced their stakes in the company. Achmea Investment Management B.V. purchased a new stake in Magna International in the 3rd quarter valued at about $8,606,000. Geode Capital Management LLC boosted its stake in shares of Magna International by 6.8% in the 4th quarter. Geode Capital Management LLC now owns 2,426,843 shares of the company's stock worth $128,774,000 after buying an additional 154,710 shares during the last quarter. Russell Investments Group Ltd. grew its holdings in shares of Magna International by 7.8% in the fourth quarter. Russell Investments Group Ltd. now owns 2,090,887 shares of the company's stock valued at $111,549,000 after acquiring an additional 151,819 shares in the last quarter. Public Employees Retirement System of Ohio grew its holdings in shares of Magna International by 196.9% in the third quarter. Public Employees Retirement System of Ohio now owns 139,659 shares of the company's stock valued at $6,620,000 after acquiring an additional 92,613 shares in the last quarter. Finally, SBI Okasan Asset Management Co.Ltd. purchased a new stake in shares of Magna International during the fourth quarter valued at approximately $1,855,000. 67.49% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

Several research analysts have weighed in on MGA shares. TD boosted their price objective on Magna International from $75.00 to $76.00 and gave the stock a "buy" rating in a research report on Monday, May 4th. Canadian Imperial Bank of Commerce decreased their target price on Magna International to $74.00 in a research report on Monday, May 4th. Zacks Research cut Magna International from a "strong-buy" rating to a "hold" rating in a research note on Friday, May 1st. Citigroup boosted their price target on shares of Magna International from $58.00 to $75.00 and gave the stock a "buy" rating in a report on Thursday, June 4th. Finally, Veritas upgraded shares of Magna International to a "strong-buy" rating in a report on Monday, May 4th. One investment analyst has rated the stock with a Strong Buy rating, eight have given a Buy rating, ten have issued a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, the company currently has an average rating of "Hold" and a consensus target price of $65.60.

Magna International Stock Performance

Shares of MGA opened at $64.30 on Friday. Magna International Inc. has a 1 year low of $40.51 and a 1 year high of $69.94. 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's fifty day moving average price is $64.30 and its two-hundred day moving average price is $59.71. The firm has a market cap of $17.36 billion, a PE ratio of 26.90, a PEG ratio of 0.87 and a beta of 1.44.

Magna International (NYSE:MGA - Get Free Report) TSE: MG last announced its quarterly earnings data on Friday, May 1st. The company reported $1.38 earnings per share for the quarter, topping the consensus estimate of $1.01 by $0.37. Magna International had a return on equity of 14.01% and a net margin of 1.60%.The company had revenue of $10.13 billion during the quarter, compared to analyst estimates of $10.14 billion. During the same quarter last year, the firm posted $0.78 EPS. The firm's revenue for the quarter was up 3.1% on a year-over-year basis. Magna International has set its FY 2026 guidance at 6.250-7.250 EPS. On average, equities research analysts forecast that Magna International Inc. will post 6.87 EPS for the current year.

Magna International Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Friday, May 29th. Stockholders of record on Friday, May 15th were paid a $0.495 dividend. The ex-dividend date was Friday, May 15th. This represents a $1.98 annualized dividend and a dividend yield of 3.1%. Magna International's dividend payout ratio (DPR) is presently 82.85%.

Magna International Company Profile

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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