Magna International Inc. (NYSE:MGA) Receives Consensus Recommendation of "Hold" from Brokerages

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%.

Shares of Magna International Inc. (NYSE:MGA - Get Free Report) TSE: MG have earned an average recommendation of "Hold" from the sixteen brokerages that are currently covering the company, MarketBeat reports. One research analyst has rated the stock with a sell recommendation, twelve have assigned a hold recommendation and three have issued a buy recommendation on the company. The average 1 year price objective among brokers that have issued a report on the stock in the last year is $42.71.

Several brokerages have recently issued reports on MGA. Royal Bank Of Canada raised their price target on shares of Magna International from $31.00 to $38.00 and gave the stock a "sector perform" rating in a research note on Wednesday, July 9th. Scotiabank lifted their price objective on shares of Magna International from $38.00 to $44.00 and gave the company a "sector perform" rating in a research note on Monday, July 14th. Wells Fargo & Company lifted their price objective on shares of Magna International from $37.00 to $38.00 and gave the company an "equal weight" rating in a research note on Tuesday, July 1st. Morgan Stanley reduced their price objective 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. Finally, TD Securities lifted their price objective on shares of Magna International from $44.00 to $45.00 and gave the company a "buy" rating in a research note on Monday, May 5th.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in MGA. Versant Capital Management Inc purchased a new position in Magna International in the first quarter worth $27,000. LRI Investments LLC purchased a new position in Magna International in the second quarter worth $27,000. Cromwell Holdings LLC grew its position in Magna International by 131.6% in the first quarter. Cromwell Holdings LLC now owns 820 shares of the company's stock worth $28,000 after acquiring an additional 466 shares in the last quarter. Whittier Trust Co. of Nevada Inc. grew its position in Magna International by 507.3% in the first 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 in the last quarter. Finally, Farther Finance Advisors LLC grew its position in Magna International by 385.1% in the second 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 hedge funds and other institutional investors.

Magna International Trading Up 0.8%

Shares of MGA stock opened at $41.33 on Friday. The company has a 50 day moving average of $39.42 and a 200-day moving average of $37.36. The company has a quick ratio of 0.74, a current ratio of 1.06 and a debt-to-equity ratio of 0.32. Magna International has a 12-month low of $30.39 and a 12-month high of $47.22. The firm has a market cap of $11.65 billion, a P/E ratio of 9.70, a PEG ratio of 0.96 and a beta of 1.51.

Magna International (NYSE:MGA - Get Free Report) TSE: MG last issued its quarterly earnings results on Friday, August 1st. The company reported $1.44 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.19 by $0.25. Magna International had a net margin of 2.73% and a return on equity of 11.96%. The company had revenue of $10.82 billion during the quarter, compared to analyst estimates of $10.10 billion. During the same quarter last year, the business posted $1.35 EPS. Magna International's quarterly revenue was down 3.0% compared to the same quarter last year. Sell-side analysts anticipate that Magna International will post 5.87 earnings per share for the current year.

Magna International Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Friday, May 30th. Stockholders of record on Friday, May 16th were given a dividend of $0.485 per share. This represents a $1.94 dividend on an annualized basis and a dividend yield of 4.7%. The ex-dividend date was Friday, May 16th. Magna International's payout ratio is 48.50%.

Magna International Company Profile

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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