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

Key Points

• Magna International Inc. has received an average rating of "Hold" from analysts, with one sell, thirteen hold, and three buy recommendations, reflecting a cautious outlook on the stock.
• The company's quarterly earnings report exceeded expectations, showing $1.44 earnings per share against a consensus estimate of $1.19, although revenue declined by 3% year-over-year.
• Magna will pay a quarterly dividend of $0.485 on August 29th, representing an annualized yield of 4.2% and indicating a relatively stable income for investors.

Shares of Magna International Inc. (NYSE:MGA - Get Free Report) TSE: MG have been assigned an average rating of "Hold" from the seventeen analysts that are covering the company, MarketBeat Ratings reports. One analyst has rated the stock with a sell recommendation, thirteen have given a hold recommendation and three have issued a buy recommendation on the company. The average 12 month price objective among brokers that have issued a report on the stock in the last year is $43.50.

A number of equities analysts have weighed in on MGA shares. BMO Capital Markets dropped their target price on shares of Magna International from $47.00 to $41.00 and set an "outperform" rating for the company in a research note on Monday, May 5th. Morgan Stanley dropped their target price on shares of Magna International from $40.00 to $38.00 and set an "equal weight" rating for the company in a research note on Monday, May 19th. Scotiabank boosted their target price on shares of Magna International from $38.00 to $44.00 and gave the stock a "sector perform" rating in a research note on Monday, July 14th. CIBC reaffirmed a "neutral" rating and issued a $47.00 target price (up previously from $46.00) on shares of Magna International in a research note on Tuesday. Finally, Evercore ISI raised their target price on shares of Magna International from $37.00 to $40.00 and gave the company an "in-line" rating in a research note on Monday, August 4th.

Magna International Trading Down 0.0%

Shares of NYSE MGA opened at $46.34 on Thursday. Magna International has a 1-year low of $30.39 and a 1-year high of $47.22. The company has a market cap of $13.06 billion, a PE ratio of 10.88, a P/E/G ratio of 1.04 and a beta of 1.51. The company has a current ratio of 1.16, a quick ratio of 0.82 and a debt-to-equity ratio of 0.39. The company has a 50-day moving average of $41.98 and a two-hundred day moving average of $37.88.

Magna International (NYSE:MGA - Get Free Report) TSE: MG last announced its earnings results on Friday, August 1st. The company reported $1.44 earnings per share for the quarter, topping analysts' consensus estimates of $1.19 by $0.25. Magna International had a net margin of 2.91% and a return on equity of 11.89%. The company had revenue of $10.82 billion during the quarter, compared to the consensus estimate of $10.10 billion. During the same period in the previous year, the firm posted $1.35 earnings per share. The company's revenue was down 3.0% on a year-over-year basis. Magna International has set its FY 2025 guidance at EPS. As a group, equities analysts expect that Magna International will post 5.87 earnings per share for the current fiscal year.

Magna International Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, August 29th. Stockholders of record on Friday, August 15th will be paid a $0.485 dividend. This represents a $1.94 annualized dividend and a dividend yield of 4.2%. The ex-dividend date of this dividend is Friday, August 15th. Magna International's dividend payout ratio (DPR) is 45.54%.

Institutional Inflows and Outflows

Several hedge funds have recently modified their holdings of MGA. Cromwell Holdings LLC boosted its holdings in shares of Magna International by 131.6% in the 1st 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. LRI Investments LLC acquired a new stake in shares of Magna International in the 2nd quarter valued at approximately $27,000. Versant Capital Management Inc acquired a new stake in shares of Magna International in the 1st quarter valued at approximately $27,000. Integrated Wealth Concepts LLC boosted its holdings in shares of Magna International by 19.8% in the 1st quarter. Integrated Wealth Concepts LLC now owns 6,808 shares of the company's stock valued at $231,000 after buying an additional 1,123 shares during the last quarter. Finally, Farther Finance Advisors LLC boosted its holdings in shares of 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 buying an additional 1,136 shares during the last quarter. Institutional investors own 67.49% of the company's stock.

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.

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