Magna International Inc. (NYSE:MGA) Given Average Rating of "Hold" by Brokerages

Key Points

• Analysts maintain a “Hold” consensus on Magna International, with nine hold, eight buy, one strong-buy and one sell rating. The average 12-month price target is $67.93, below the stock’s reported opening price of $69.68.
• Magna reported quarterly EPS of $1.86, beating the $1.53 consensus estimate, while revenue of $10.84 billion also exceeded forecasts and rose 3.3% year over year.
• The company declared a quarterly dividend of $0.495 per share, equivalent to $1.98 annually and a 2.8% yield; institutional investors own 67.49% of the stock.

Shares of Magna International Inc. (NYSE:MGA - Get Free Report) TSE: MG have been given an average recommendation of "Hold" by the nineteen ratings firms that are presently covering the stock, MarketBeat.com reports. One investment analyst has rated the stock with a sell recommendation, nine have given a hold recommendation, eight have assigned a buy recommendation and one has assigned a strong buy recommendation to the company. The average twelve-month price objective among brokers that have issued a report on the stock in the last year is $67.9333.

Several research analysts recently weighed in on the company. Wells Fargo & Company upped their price target on Magna International from $62.00 to $67.00 and gave the company an "equal weight" rating in a research report on Monday, August 3rd. TD lifted their target price on Magna International from $75.00 to $76.00 and gave the company a "buy" rating in a research note on Monday, May 4th. Royal Bank Of Canada lifted their target price on Magna International from $66.00 to $69.00 and gave the company a "sector perform" rating in a research note on Monday, August 3rd. Citigroup upped their target price on Magna International from $58.00 to $75.00 and gave the company a "buy" rating in a report on Thursday, June 4th. Finally, Canadian Imperial Bank of Commerce reduced their price target on shares of Magna International to $74.00 in a research report on Monday, May 4th.

Magna International Stock Down 0.8%

Shares of NYSE:MGA opened at $69.68 on Thursday. The firm has a 50 day simple moving average of $66.41 and a 200 day simple moving average of $61.88. Magna International has a 52 week low of $43.11 and a 52 week high of $71.96. The company has a debt-to-equity ratio of 0.38, a quick ratio of 0.88 and a current ratio of 1.22. The company has a market cap of $18.63 billion, a PE ratio of 25.25, a price-to-earnings-growth ratio of 0.77 and a beta of 1.44.

Magna International (NYSE:MGA - Get Free Report) TSE: MG last released its earnings results on Friday, July 31st. The company reported $1.86 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.53 by $0.33. The company had revenue of $10.84 billion during the quarter, compared to analyst estimates of $10.63 billion. Magna International had a return on equity of 15.04% and a net margin of 1.80%.The company's revenue for the quarter was up 3.3% on a year-over-year basis. During the same quarter in the prior year, the company earned $1.44 earnings per share. Magna International has set its FY 2026 guidance at 6.700-7.300 EPS. As a group, research analysts expect that Magna International will post 7.02 earnings per share for the current year.

Magna International Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, August 28th. Shareholders of record on Friday, August 14th will be paid a $0.495 dividend. This represents a $1.98 annualized dividend and a yield of 2.8%. The ex-dividend date is Friday, August 14th. Magna International's dividend payout ratio is currently 71.74%.

Institutional Investors Weigh In On Magna International

Institutional investors have recently modified their holdings of the stock. Hillsdale Investment Management Inc. increased its position in Magna International by 2.3% in the 4th quarter. Hillsdale Investment Management Inc. now owns 725,425 shares of the company's stock worth $38,741,000 after purchasing an additional 16,255 shares during the last quarter. Plato Investment Management Ltd lifted its holdings in shares of Magna International by 74.5% during the 4th quarter. Plato Investment Management Ltd now owns 69,752 shares of the company's stock valued at $3,741,000 after buying an additional 29,785 shares during the last quarter. Public Employees Retirement System of Ohio grew its stake in shares of Magna International by 43.5% in the 1st quarter. Public Employees Retirement System of Ohio now owns 199,358 shares of the company's stock valued at $11,095,000 after buying an additional 60,432 shares in the last quarter. Mediolanum International Funds Ltd grew its stake in shares of Magna International by 83.1% in the 1st quarter. Mediolanum International Funds Ltd now owns 134,736 shares of the company's stock valued at $7,210,000 after buying an additional 61,151 shares in the last quarter. Finally, ARGA Investment Management LP increased its holdings in Magna International by 1.1% in the fourth quarter. ARGA Investment Management LP now owns 4,193,129 shares of the company's stock worth $223,512,000 after buying an additional 44,996 shares during the last quarter. Institutional investors and hedge funds own 67.49% of the company's stock.

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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