Magna International (NYSE:MGA) Stock Price Down 6.9% - Time to Sell?

Key Points

• Magna International shares fell 6.9% to about $68.04 in Monday trading, with volume roughly 45% below the average session level.
• Analyst sentiment remains mixed: Magna has a consensus “Hold” rating and an average price target of $68.20, despite several analysts recently raising their targets.
• The company exceeded quarterly expectations, reporting $1.86 EPS and $10.84 billion in revenue, while declaring a quarterly dividend of $0.495 per share, equivalent to a 2.9% annualized yield.

Magna International Inc. (NYSE:MGA - Get Free Report) TSE: MG dropped 6.9% during trading on Monday . The stock traded as low as $68.51 and last traded at $68.0390. Approximately 873,672 shares were traded during mid-day trading, a decline of 45% from the average session volume of 1,590,020 shares. The stock had previously closed at $73.05.

Analyst Ratings Changes

Several analysts have recently commented on the stock. Scotiabank raised their price objective on shares of Magna International from $74.00 to $78.00 and gave the company a "sector outperform" rating in a research report on Monday, August 3rd. Canadian Imperial Bank of Commerce decreased their price target on Magna International to $74.00 in a report on Monday, May 4th. Barclays boosted their price objective on Magna International from $66.00 to $68.00 and gave the company an "equal weight" rating in a research report on Friday, August 7th. JPMorgan Chase & Co. upped their price objective on Magna International from $70.00 to $77.00 and gave the stock an "overweight" rating in a research note on Monday, August 10th. Finally, Morgan Stanley increased their target price on Magna International from $65.00 to $69.00 and gave the stock an "equal weight" rating in a research report on Tuesday, August 18th. One investment analyst has rated the stock with a Strong Buy rating, eight have assigned a Buy rating, nine have given a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, Magna International presently has a consensus rating of "Hold" and an average price target of $68.20.

Magna International Trading Down 7.3%

The firm has a market cap of $18.10 billion, a PE ratio of 24.54, a P/E/G ratio of 0.79 and a beta of 1.44. The company's 50 day moving average price is $67.06 and its two-hundred day moving average price is $62.79. The company has a quick ratio of 0.88, a current ratio of 1.22 and a debt-to-equity ratio of 0.38.

Magna International (NYSE:MGA - Get Free Report) TSE: MG last announced its quarterly earnings data on Friday, July 31st. The company reported $1.86 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.53 by $0.33. Magna International had a net margin of 1.80% and a return on equity of 15.04%. The business had revenue of $10.84 billion during the quarter, compared to the consensus estimate of $10.63 billion. During the same quarter last year, the firm earned $1.44 earnings per share. The firm's quarterly revenue was up 3.3% compared to the same quarter last year. Magna International has set its FY 2026 guidance at 6.700-7.300 EPS. As a group, sell-side analysts forecast that Magna International Inc. will post 7.07 EPS for the current year.

Magna International Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, August 28th. Stockholders 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 dividend on an annualized basis and a dividend yield of 2.9%. Magna International's dividend payout ratio is presently 71.74%.

Hedge Funds Weigh In On Magna International

A number of hedge funds have recently added to or reduced their stakes in MGA. Bank of New York Mellon Corp purchased a new position in shares of Magna International in the 2nd quarter valued at $28,495,000. TD Waterhouse Canada Inc. lifted its stake in shares of Magna International by 10.7% during the 2nd quarter. TD Waterhouse Canada Inc. now owns 2,130,562 shares of the company's stock worth $134,577,000 after purchasing an additional 206,433 shares during the last quarter. Geode Capital Management LLC boosted its position in Magna International by 6.8% during the fourth quarter. Geode Capital Management LLC now owns 2,426,843 shares of the company's stock valued at $128,774,000 after purchasing an additional 154,710 shares in the last quarter. Russell Investments Group Ltd. boosted its position in Magna International by 7.8% during the fourth quarter. Russell Investments Group Ltd. now owns 2,090,887 shares of the company's stock valued at $111,549,000 after purchasing an additional 151,819 shares in the last quarter. Finally, Public Employees Retirement System of Ohio purchased a new position in Magna International in the second quarter valued at about $9,160,000. 67.49% of the stock is currently owned by institutional investors.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source