Magna International Inc. (NYSE:MGA) Plans Quarterly Dividend of $0.49

Key Points

• Magna International Inc. declared a quarterly dividend of $0.49 per share, with the ex-dividend date set for August 15th and payment scheduled for August 29th.
• The company has a payout ratio of 33.7%, which indicates that its dividend is sufficiently covered by earnings, with expected earnings of $6.66 per share next year.
• Magna International reported $1.44 EPS for the last quarter, exceeding consensus estimates of $1.19, and generating revenue of $10.82 billion, surpassing expectations of $10.10 billion.

Magna International Inc. (NYSE:MGA - Get Free Report) TSE: MG declared a quarterly dividend on Monday, August 4th, Wall Street Journal reports. Shareholders of record on Friday, August 15th will be paid a dividend of 0.485 per share on Friday, August 29th. This represents a c) annualized dividend and a dividend yield of 4.6%. The ex-dividend date of this dividend is Friday, August 15th.

Magna International has a dividend payout ratio of 33.7% indicating that its dividend is sufficiently covered by earnings. Research analysts expect Magna International to earn $6.66 per share next year, which means the company should continue to be able to cover its $1.94 annual dividend with an expected future payout ratio of 29.1%.

Magna International Trading Up 0.7%

Shares of MGA stock traded up $0.28 during trading hours on Wednesday, reaching $42.05. 628,441 shares of the stock traded hands, compared to its average volume of 1,821,260. The business has a fifty day moving average price of $39.64 and a 200 day moving average price of $37.37. Magna International has a 1-year low of $30.39 and a 1-year high of $47.22. The company has a quick ratio of 0.74, a current ratio of 1.16 and a debt-to-equity ratio of 0.39. The firm has a market capitalization of $11.85 billion, a PE ratio of 9.87, a PEG ratio of 0.96 and a beta of 1.51.

Magna International (NYSE:MGA - Get Free Report) TSE: MG last posted its quarterly earnings results on Friday, August 1st. The company reported $1.44 EPS for the quarter, beating the consensus estimate of $1.19 by $0.25. Magna International had a net margin of 2.91% and a return on equity of 11.89%. The business had revenue of $10.82 billion for the quarter, compared to analysts' expectations of $10.10 billion. During the same period in the previous year, the company posted $1.35 EPS. Magna International's revenue was down 3.0% on a year-over-year basis. On average, equities research analysts forecast that Magna International will post 5.87 EPS for the current year.

Hedge Funds Weigh In On Magna International

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Versant Capital Management Inc bought a new stake in Magna International during the first quarter worth about $27,000. LRI Investments LLC acquired a new position in Magna International during the second quarter worth approximately $27,000. Cromwell Holdings LLC lifted its position in shares of Magna International by 131.6% in the first quarter. Cromwell Holdings LLC now owns 820 shares of the company's stock valued at $28,000 after buying an additional 466 shares during the last quarter. Whittier Trust Co. of Nevada Inc. increased its holdings in shares of Magna International by 507.3% during the 1st quarter. Whittier Trust Co. of Nevada Inc. now owns 1,500 shares of the company's stock worth $51,000 after acquiring an additional 1,253 shares during the last quarter. Finally, Farther Finance Advisors LLC raised its stake in Magna International by 385.1% in the 2nd quarter. Farther Finance Advisors LLC now owns 1,431 shares of the company's stock valued at $55,000 after acquiring an additional 1,136 shares during the period. 67.49% of the stock is owned by institutional investors and hedge funds.

About Magna International

Magna International Inc designs, engineers, and manufactures components, assemblies, systems, subsystems, and modules for original equipment manufacturers of vehicles and light trucks worldwide. It operates through four segments: Body Exteriors & Structures, Power & Vision, Seating Systems, and Complete Vehicles.