Magna International (NYSE:MGA) Sets New 12-Month High - Still a Buy?

Key Points

• Magna International shares reached a new 52-week high of $69.99 and last traded near $69.58, above the $65.73 average analyst price target. Despite the recent rally, analysts’ consensus rating remains “Hold.”
• The company reported quarterly EPS of $1.38, beating estimates of $1.01, while revenue of $10.13 billion was roughly in line with expectations and rose 3.1% year over year. Analysts expect full-year EPS of approximately $6.82.
• Magna declared a quarterly dividend of $0.495 per share, equivalent to a 2.9% annualized yield, though its payout ratio is relatively high at 82.85%. Institutional investors own 67.49% of the company.

Magna International Inc. (NYSE:MGA - Get Free Report) TSE: MG shares hit a new 52-week high on Wednesday . The company traded as high as $69.99 and last traded at $69.5830, with a volume of 238837 shares changing hands. The stock had previously closed at $69.02.

Wall Street Analysts Forecast Growth

MGA has been the topic of a number of recent research reports. Royal Bank Of Canada lifted their price objective on shares of Magna International to $57.00 and gave the company a "sector perform" rating in a report on Monday, July 13th. Wells Fargo & Company dropped their price target on Magna International from $69.00 to $59.00 and set an "equal weight" rating on the stock in a research note on Tuesday, March 31st. JPMorgan Chase & Co. lowered their target price on Magna International from $71.00 to $70.00 and set an "overweight" rating on the stock in a research note on Thursday, April 23rd. Canadian Imperial Bank of Commerce cut their price target on Magna International to $74.00 in a research note on Monday, May 4th. Finally, UBS Group boosted their price objective on shares of Magna International from $62.00 to $64.00 and gave the company a "neutral" rating in a research report on Thursday, July 9th. One investment analyst has rated the stock with a Strong Buy rating, eight have issued a Buy rating, ten have assigned a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat, the company has an average rating of "Hold" and an average target price of $65.73.

Magna International Stock Up 0.4%

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 firm has a market cap of $18.53 billion, a P/E ratio of 28.98, a price-to-earnings-growth ratio of 0.92 and a beta of 1.44. The stock's 50 day simple moving average is $65.45 and its 200 day simple moving average is $60.78.

Magna International (NYSE:MGA - Get Free Report) TSE: MG last announced its quarterly earnings results on Friday, May 1st. The company reported $1.38 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.01 by $0.37. The business had revenue of $10.13 billion during the quarter, compared to the consensus estimate of $10.14 billion. Magna International had a return on equity of 14.01% and a net margin of 1.60%.Magna International's revenue was up 3.1% compared to the same quarter last year. During the same quarter in the prior year, the company posted $0.78 earnings per share. Magna International has set its FY 2026 guidance at 6.250-7.250 EPS. Research analysts anticipate that Magna International Inc. will post 6.82 EPS for the current year.

Magna International Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Friday, May 29th. Investors of record on Friday, May 15th were paid a dividend of $0.495 per share. The ex-dividend date of this dividend was Friday, May 15th. This represents a $1.98 annualized dividend and a yield of 2.9%. Magna International's payout ratio is currently 82.85%.

Institutional Trading of Magna International

A number of hedge funds have recently bought and sold shares of MGA. EverSource Wealth Advisors LLC lifted its position in Magna International by 35.7% in the fourth quarter. EverSource Wealth Advisors LLC now owns 779 shares of the company's stock valued at $42,000 after purchasing an additional 205 shares during the last quarter. Oslo Pensjonsforsikring AS bought a new position in shares of Magna International in the 1st quarter worth approximately $45,000. IFC & Insurance Marketing Inc. purchased a new position in Magna International during the fourth quarter valued at $49,000. Atlas Capital Advisors Inc. bought a new stake in Magna International during the fourth quarter worth about $67,000. Finally, Danske Bank A S bought a new stake in shares of Magna International in the 3rd quarter worth approximately $112,000. Institutional investors own 67.49% of the company's stock.

Magna International Company Profile

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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