Magna International (NYSE:MGA) Sets New 52-Week High After Analyst Upgrade

Key Points

• Magna International shares reached a new 52-week high of $71.99 after Morgan Stanley raised its price target from $65 to $69, though it maintained an “equal weight” rating.
• Analyst sentiment remains mixed, with the stock carrying an average “Hold” rating and a consensus target price of $68.20. Other firms recently raised targets as high as $78.
• Magna exceeded quarterly expectations, reporting $1.86 in EPS and $10.84 billion in revenue, while declaring a quarterly dividend of $0.495 per share, representing a 2.8% annualized yield.

Magna International Inc. (NYSE:MGA - Get Free Report) TSE: MG shares hit a new 52-week high during trading on Wednesday after Morgan Stanley raised their price target on the stock from $65.00 to $69.00. Morgan Stanley currently has an equal weight rating on the stock. Magna International traded as high as $71.99 and last traded at $71.4160, with a volume of 199288 shares trading hands. The stock had previously closed at $70.27.

MGA has been the subject of several other reports. Barclays upped their price objective on Magna International from $66.00 to $68.00 and gave the stock an "equal weight" rating in a research report on Friday, August 7th. Scotiabank boosted their target price on Magna International from $74.00 to $78.00 and gave the stock a "sector outperform" rating in a research note on Monday, August 3rd. JPMorgan Chase & Co. increased their target price on shares of Magna International from $70.00 to $77.00 and gave the stock an "overweight" rating in a report on Monday, August 10th. Zacks Research downgraded shares of Magna International from a "strong-buy" rating to a "hold" rating in a research note on Friday, May 1st. Finally, Wall Street Zen cut shares of Magna International from a "strong-buy" rating to a "buy" rating in a research report on Saturday. One research analyst has rated the stock with a Strong Buy rating, eight have issued a Buy rating, nine have given a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat, Magna International presently has an average rating of "Hold" and a consensus target price of $68.20.

Institutional Trading of Magna International

Several hedge funds and other institutional investors have recently made changes to their positions in MGA. Hillsdale Investment Management Inc. increased its position in Magna International by 2.3% in the 4th quarter. Hillsdale Investment Management Inc. now owns 725,425 shares of the company's stock valued at $38,741,000 after acquiring an additional 16,255 shares during the period. Plato Investment Management Ltd raised its stake in shares of Magna International by 74.5% during the fourth quarter. Plato Investment Management Ltd now owns 69,752 shares of the company's stock valued at $3,741,000 after acquiring an additional 29,785 shares during the last quarter. Public Employees Retirement System of Ohio lifted its holdings in shares of Magna International by 43.5% during the first quarter. Public Employees Retirement System of Ohio now owns 199,358 shares of the company's stock worth $11,095,000 after purchasing an additional 60,432 shares during the period. Mediolanum International Funds Ltd lifted its holdings in shares of Magna International by 83.1% during the first quarter. Mediolanum International Funds Ltd now owns 134,736 shares of the company's stock worth $7,210,000 after purchasing an additional 61,151 shares during the period. Finally, ARGA Investment Management LP grew its stake in shares of Magna International by 1.1% in the fourth quarter. ARGA Investment Management LP now owns 4,193,129 shares of the company's stock worth $223,512,000 after purchasing an additional 44,996 shares during the last quarter. 67.49% of the stock is currently owned by institutional investors.

Magna International Stock Performance

The firm has a market capitalization of $19.12 billion, a P/E ratio of 25.90, a price-to-earnings-growth ratio of 0.76 and a beta of 1.44. The company has a 50-day moving average of $66.71 and a 200-day moving average of $62.37. The company has a current ratio of 1.22, a quick ratio of 0.88 and a debt-to-equity ratio of 0.38.

Magna International (NYSE:MGA - Get Free Report) TSE: MG last released its quarterly earnings results on Friday, July 31st. The company reported $1.86 EPS for the quarter, beating analysts' consensus estimates of $1.53 by $0.33. The firm had revenue of $10.84 billion for the quarter, compared to analyst estimates of $10.63 billion. Magna International had a return on equity of 15.04% and a net margin of 1.80%.The business's revenue was up 3.3% on a year-over-year basis. During the same quarter in the previous year, the company posted $1.44 EPS. Magna International has set its FY 2026 guidance at 6.700-7.300 EPS. On average, equities analysts anticipate that Magna International Inc. will post 7.05 earnings per share for the current fiscal year.

Magna International Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Friday, August 28th. Investors of record on Friday, August 14th will be issued a $0.495 dividend. The ex-dividend date is Friday, August 14th. This represents a $1.98 annualized dividend and a yield of 2.8%. Magna International's dividend payout ratio is presently 71.74%.

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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