Magna International (NYSE:MGA) Upgraded to "Buy" at Wall Street Zen

Key Points

• Magna International (NYSE:MGA) has been upgraded from a "hold" rating to a "buy" rating by Wall Street Zen, signaling increased confidence in the stock.
• The company's recent earnings report revealed $1.44 earnings per share, exceeding analysts' expectations of $1.19, and a revenue of $10.82 billion, surpassing forecasts.
• Magna International's current average target price is $42.36, with a market capitalization of $11.98 billion and a P/E ratio of 9.98.

Wall Street Zen upgraded shares of Magna International (NYSE:MGA - Free Report) TSE: MG from a hold rating to a buy rating in a research note published on Saturday morning.

MGA has been the topic of a number of other reports. Evercore ISI raised their price target on Magna International from $37.00 to $40.00 and gave the company an "in-line" rating in a research note on Monday, August 4th. Royal Bank Of Canada raised their price target on Magna International from $31.00 to $38.00 and gave the company a "sector perform" rating in a research note on Wednesday, July 9th. BMO Capital Markets reduced their target price on Magna International from $47.00 to $41.00 and set an "outperform" rating for the company in a report on Monday, May 5th. Wells Fargo & Company upped their target price on Magna International from $37.00 to $38.00 and gave the company an "equal weight" rating in a research report on Tuesday, July 1st. Finally, Veritas raised Magna International to a "hold" rating in a research report on Thursday, April 24th. One research analyst has rated the stock with a sell rating, thirteen have issued a hold rating and four have assigned a buy rating to the company's stock. According to MarketBeat.com, the company has a consensus rating of "Hold" and a consensus target price of $42.36.

Magna International Stock Down 0.5%

Shares of NYSE MGA traded down $0.22 during mid-day trading on Friday, hitting $42.26. The company had a trading volume of 810,955 shares, compared to its average volume of 1,808,827. The company has a market capitalization of $11.91 billion, a PE ratio of 9.92, a price-to-earnings-growth ratio of 0.97 and a beta of 1.51. The company has a debt-to-equity ratio of 0.39, a current ratio of 1.16 and a quick ratio of 0.82. Magna International has a 1-year low of $30.39 and a 1-year high of $47.22. The business's 50-day simple moving average is $40.01 and its 200 day simple moving average is $37.39.

Magna International (NYSE:MGA - Get Free Report) TSE: MG last announced its quarterly earnings data on Friday, August 1st. The company reported $1.44 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.19 by $0.25. The business had revenue of $10.82 billion for the quarter, compared to analysts' expectations of $10.10 billion. Magna International had a return on equity of 11.89% and a net margin of 2.91%. The company's revenue for the quarter was down 3.0% compared to the same quarter last year. During the same period last year, the firm earned $1.35 earnings per share. On average, analysts predict that Magna International will post 5.87 earnings per share for the current year.

Magna International Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, August 29th. Investors of record on Friday, August 15th will be paid a $0.485 dividend. This represents a $1.94 dividend on an annualized basis and a yield of 4.6%. The ex-dividend date is Friday, August 15th. Magna International's dividend payout ratio (DPR) is 45.54%.

Hedge Funds Weigh In On Magna International

A number of hedge funds have recently bought and sold shares of MGA. ARGA Investment Management LP grew its stake in Magna International by 17.0% in the first quarter. ARGA Investment Management LP now owns 2,997,857 shares of the company's stock worth $101,890,000 after purchasing an additional 436,366 shares in the last quarter. Geode Capital Management LLC grew its stake in Magna International by 32.2% in the fourth quarter. Geode Capital Management LLC now owns 1,523,196 shares of the company's stock worth $63,280,000 after purchasing an additional 371,437 shares in the last quarter. Caisse DE Depot ET Placement DU Quebec acquired a new position in Magna International in the first quarter worth about $8,416,000. Quantbot Technologies LP grew its stake in Magna International by 3,849.3% in the first quarter. Quantbot Technologies LP now owns 165,908 shares of the company's stock worth $5,639,000 after purchasing an additional 161,707 shares in the last quarter. Finally, ARK Investment Management LLC acquired a new position in Magna International in the first quarter worth about $5,478,000. 67.49% of the stock is currently owned by institutional investors and hedge funds.

About Magna International

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.