Magna International Inc. (NYSE:MGA) Receives $42.71 Consensus Target Price from Analysts

Key Points

• Magna International Inc. has received a consensus recommendation of "Hold" from sixteen brokerages, with one sell, twelve hold, and three buy recommendations.
• The average price target among analysts for Magna International's stock is $42.71, with various brokerages adjusting their price targets upwards recently.
• Magna reported a quarterly earnings per share (EPS) of $1.44, exceeding expectations and indicating a net revenue of $10.82 billion for the quarter, despite a year-over-year revenue decline of 3.0%.

Magna International Inc. (NYSE:MGA - Get Free Report) TSE: MG has earned a consensus recommendation of "Hold" from the sixteen brokerages that are presently covering the stock, MarketBeat Ratings reports. One investment analyst has rated the stock with a sell rating, twelve have issued a hold rating and three have assigned a buy rating to the company. The average 12-month price objective among brokerages that have issued a report on the stock in the last year is $42.3571.

A number of equities research analysts have weighed in on the stock. Scotiabank upped their price objective on shares of Magna International from $38.00 to $44.00 and gave the stock a "sector perform" rating in a report on Monday, July 14th. Evercore ISI upped their price target on Magna International from $37.00 to $40.00 and gave the stock an "in-line" rating in a research note on Monday. Bank of America lifted their price objective on Magna International from $42.00 to $45.00 and gave the company a "neutral" rating in a research note on Monday, June 16th. Veritas raised Magna International to a "hold" rating in a report on Thursday, April 24th. Finally, TD Securities raised their price target on Magna International from $50.00 to $52.00 and gave the company a "buy" rating in a report on Tuesday.

Magna International Stock Up 0.7%

MGA traded up $0.30 during trading on Friday, reaching $42.07. The stock had a trading volume of 407,710 shares, compared to its average volume of 1,819,571. The company has a current ratio of 1.16, a quick ratio of 0.74 and a debt-to-equity ratio of 0.39. The company has a market capitalization of $11.86 billion, a price-to-earnings ratio of 9.89, a P/E/G ratio of 0.96 and a beta of 1.51. The stock's 50 day moving average is $39.64 and its two-hundred day moving average is $37.37. Magna International has a one year low of $30.39 and a one year high of $47.22.

Magna International (NYSE:MGA - Get Free Report) TSE: MG last released 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. The firm had revenue of $10.82 billion for the quarter, compared to the consensus estimate of $10.10 billion. Magna International had a net margin of 2.91% and a return on equity of 11.89%. The company's revenue was down 3.0% compared to the same quarter last year. During the same period in the prior year, the firm earned $1.35 EPS. As a group, analysts expect that Magna International will post 5.87 earnings per share for the current year.

Magna International Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, August 29th. Investors of record on Friday, August 15th will be paid a $0.485 dividend. The ex-dividend date of this dividend is Friday, August 15th. This represents a $1.94 dividend on an annualized basis and a yield of 4.6%. Magna International's dividend payout ratio is 45.54%.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Cromwell Holdings LLC boosted its stake in shares of Magna International by 131.6% during the first quarter. Cromwell Holdings LLC now owns 820 shares of the company's stock valued at $28,000 after purchasing an additional 466 shares in the last quarter. LRI Investments LLC purchased a new stake in Magna International during the second quarter worth $27,000. Versant Capital Management Inc bought a new stake in Magna International during the 1st quarter valued at $27,000. Integrated Wealth Concepts LLC increased 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 acquiring an additional 1,123 shares during the period. Finally, Farther Finance Advisors LLC raised its position 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 worth $55,000 after acquiring an additional 1,136 shares in the last quarter. 67.49% of the stock is currently owned by institutional investors.

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.