Magna International (NYSE:MGA) Stock Price Down 6.1% - Time to Sell?

Key Points

• Stock down 6.1% — Magna shares fell to about $59.78 on Friday with roughly 2.0M shares traded, modestly above average volume.
• Q1 beat and cash‑flow improvement: Adjusted EPS of $1.38 topped estimates, adjusted EBIT rose 58%, revenue grew ~3% to $10.4B and free cash flow turned positive, supporting buybacks and an increased dividend.
• Offsetting negatives: A GAAP net loss driven by a $485M pre‑tax charge related to planned Power & Vision disposals, plus downgraded production assumptions and some lower price targets, pressured sentiment and triggered analyst selling.

Magna International Inc. (NYSE:MGA - Get Free Report) TSE: MG was down 6.1% on Friday . The company traded as low as $57.48 and last traded at $59.7780. Approximately 2,000,397 shares changed hands during mid-day trading, an increase of 6% from the average daily volume of 1,890,797 shares. The stock had previously closed at $63.67.

Key Headlines Impacting Magna International

Here are the key news stories impacting Magna International this week:

• Positive Sentiment: Adjusted performance beat expectations — Adjusted EPS of $1.38 topped consensus, Adjusted EBIT rose 58% and adjusted margin expanded materially, signaling underlying operational improvement. GlobeNewswire Q1 Release
• Positive Sentiment: Revenue and cash flow resilience — Sales grew ~3% to $10.4B despite a 7% global light-vehicle production decline, and free cash flow turned positive, supporting buybacks and the dividend. GlobeNewswire Q1 Release
• Neutral Sentiment: Full‑year outlook maintained but mixed vs. Street — Magna kept FY 2026 adjusted EPS guidance at $6.25–$7.25 and unchanged margin/free-cash flow ranges; the EPS band’s midpoint is close to consensus but the low end is below Street expectations, leaving interpretation mixed. GlobeNewswire Q1 Release
• Negative Sentiment: GAAP headline loss and one‑time charge weighed on sentiment — Magna reported a net loss attributable to the company (~$12M) driven by a $485M pre‑tax loss on assets held for sale tied to planned disposals in Power & Vision, which flagged near‑term GAAP volatility. GlobeNewswire Q1 Release
• Negative Sentiment: Softer production assumptions — Management nudged down North American and European light‑vehicle production assumptions versus prior guidance, implying potential near‑term volume pressure for auto suppliers like Magna. QuiverQuant Coverage
• Negative Sentiment: Analyst / price‑target pressure — At least one broker note reaffirmed a sector‑perform view with a sub‑current price target, which can add selling pressure after the report. MarketScreener: RBC Note

Analyst Ratings Changes

A number of equities research analysts have recently weighed in on MGA shares. Citigroup boosted their target price on Magna International from $55.00 to $58.00 and gave the company a "neutral" rating in a research note on Monday, March 23rd. The Goldman Sachs Group lowered their target price on Magna International from $60.00 to $52.00 and set a "sell" rating for the company in a research note on Tuesday, April 14th. Wall Street Zen raised Magna International from a "buy" rating to a "strong-buy" rating in a research note on Monday, January 19th. Royal Bank Of Canada reaffirmed a "sector perform" rating and set a $57.00 price target on shares of Magna International in a research report on Wednesday. Finally, Raymond James Financial upped their price target on Magna International from $50.00 to $75.00 and gave the company a "market perform" rating in a research report on Tuesday, February 17th. One research analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating, ten have issued a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat, Magna International currently has an average rating of "Hold" and an average target price of $62.40.

Magna International Price Performance

The business has a 50-day simple moving average of $58.59 and a 200 day simple moving average of $54.25. The firm has a market cap of $16.69 billion, a P/E ratio of 20.62 and a beta of 1.44. The company has a debt-to-equity ratio of 0.36, a quick ratio of 0.87 and a current ratio of 1.25.

Magna International (NYSE:MGA - Get Free Report) TSE: MG last released its quarterly earnings results on Friday, May 1st. The company reported $1.38 EPS for the quarter, beating analysts' consensus estimates of $1.01 by $0.37. Magna International had a return on equity of 12.73% and a net margin of 1.99%.Magna International's quarterly revenue was up 3.1% on a year-over-year basis. During the same quarter last year, the business posted $0.78 earnings per share. Magna International has set its FY 2026 guidance at 6.250-7.250 EPS. On average, analysts anticipate that Magna International Inc. will post 6.81 earnings per share for the current fiscal year.

Magna International Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Friday, March 13th. Shareholders of record on Friday, February 27th were given a dividend of $0.495 per share. This represents a $1.98 dividend on an annualized basis and a yield of 3.3%. The ex-dividend date of this dividend was Friday, February 27th. This is a positive change from Magna International's previous quarterly dividend of $0.49. Magna International's dividend payout ratio is currently 67.12%.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently made changes to their positions in MGA. Integrated Wealth Concepts LLC grew its holdings in shares of Magna International by 19.8% during the 1st quarter. Integrated Wealth Concepts LLC now owns 6,808 shares of the company's stock worth $231,000 after acquiring an additional 1,123 shares during the period. Ameriprise Financial Inc. grew its holdings in shares of Magna International by 14.2% during the 2nd quarter. Ameriprise Financial Inc. now owns 56,868 shares of the company's stock worth $2,196,000 after acquiring an additional 7,073 shares during the period. Farther Finance Advisors LLC grew its holdings in shares of Magna International by 98.4% during the 3rd quarter. Farther Finance Advisors LLC now owns 2,839 shares of the company's stock worth $134,000 after acquiring an additional 1,408 shares during the period. JARISLOWSKY FRASER Ltd grew its holdings in shares of Magna International by 21.0% during the 3rd quarter. JARISLOWSKY FRASER Ltd now owns 20,686 shares of the company's stock worth $980,000 after acquiring an additional 3,596 shares during the period. Finally, Cigna Investments Inc. New purchased a new position in shares of Magna International during the 3rd quarter worth approximately $218,000. Hedge funds and other institutional investors own 67.49% of the company's stock.

About Magna International

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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