Magna International (NYSE:MGA) Reaches New 12-Month High - Should You Buy?

Key Points

• Magna International shares reached a new 52-week high, trading at $47.33, up from a previous close of $46.15, with a total volume of 312,389 shares exchanged.
• Analysts have revised their target prices for Magna, with increases from firms like Wells Fargo and Evercore ISI, reflecting a generally positive outlook with a consensus rating of "Hold".
• The company announced a quarterly dividend of $0.485 per share, yielding 4.1%, indicating strong shareholder returns amid earnings that exceeded analyst expectations.

Magna International Inc. (NYSE:MGA - Get Free Report) TSE: MG's share price reached a new 52-week high on Wednesday . The stock traded as high as $47.33 and last traded at $47.32, with a volume of 312389 shares trading hands. The stock had previously closed at $46.15.

Wall Street Analysts Forecast Growth

A number of research analysts recently commented on the company. Evercore ISI upped their price objective on Magna International from $37.00 to $40.00 and gave the company an "in-line" rating in a report on Monday, August 4th. Barclays lifted their target price on shares of Magna International from $40.00 to $45.00 and gave the stock an "equal weight" rating in a research note on Wednesday, July 16th. CIBC reiterated a "neutral" rating and issued a $47.00 price objective (up previously from $46.00) on shares of Magna International in a report on Tuesday, August 26th. Wells Fargo & Company upped their target price on shares of Magna International from $37.00 to $38.00 and gave the stock an "equal weight" rating in a research report on Tuesday, July 1st. Finally, Wall Street Zen raised shares of Magna International from a "hold" rating to a "buy" rating in a research note on Saturday, August 9th. Three investment analysts have rated the stock with a Buy rating, thirteen have given a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Hold" and a consensus target price of $43.50.

Magna International Stock Down 0.7%

The company has a quick ratio of 0.82, a current ratio of 1.16 and a debt-to-equity ratio of 0.39. The company has a market capitalization of $13.25 billion, a price-to-earnings ratio of 11.04, a P/E/G ratio of 1.04 and a beta of 1.53. The stock's fifty day moving average price is $44.15 and its 200-day moving average price is $38.88.

Magna International (NYSE:MGA - Get Free Report) TSE: MG last released its quarterly earnings data 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 firm had revenue of $10.82 billion for the quarter, compared to the consensus estimate of $10.10 billion. During the same period in the previous year, the company earned $1.35 earnings per share. The company's quarterly revenue was down 3.0% on a year-over-year basis. Magna International has set its FY 2025 guidance at EPS. On average, sell-side analysts predict that Magna International Inc. will post 5.87 earnings per share for the current fiscal year.

Magna International Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Friday, August 29th. Shareholders of record on Friday, August 15th were paid a dividend of $0.485 per share. The ex-dividend date was Friday, August 15th. This represents a $1.94 annualized dividend and a yield of 4.1%. Magna International's dividend payout ratio (DPR) is 45.54%.

Institutional Trading of Magna International

Hedge funds and other institutional investors have recently bought and sold shares of the stock. ARGA Investment Management LP raised its holdings in Magna International by 3.9% in the second quarter. ARGA Investment Management LP now owns 3,114,386 shares of the company's stock worth $120,366,000 after purchasing an additional 116,529 shares in the last quarter. Geode Capital Management LLC grew its holdings in Magna International by 20.2% during the 2nd quarter. Geode Capital Management LLC now owns 2,015,407 shares of the company's stock valued at $77,332,000 after buying an additional 338,470 shares in the last quarter. QV Investors Inc. boosted its holdings in Magna International by 0.6% during the 2nd quarter. QV Investors Inc. now owns 651,377 shares of the company's stock valued at $25,129,000 after acquiring an additional 3,912 shares during the period. Amundi raised its position in Magna International by 19.0% during the 1st quarter. Amundi now owns 582,710 shares of the company's stock valued at $19,305,000 after purchasing an additional 93,189 shares in the last quarter. Finally, Bank of New York Mellon Corp grew its stake in Magna International by 0.8% during the 2nd quarter. Bank of New York Mellon Corp now owns 254,557 shares of the company's stock worth $9,828,000 after buying an additional 2,057 shares during the last quarter. Institutional investors own 67.49% of the company's stock.

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.