Magna International (NYSE:MGA) Raised 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 report released on Saturday morning.

A number of other research analysts also recently issued reports on MGA. Royal Bank Of Canada lifted their price target on shares of Magna International from $31.00 to $38.00 and gave the stock a "sector perform" rating in a research note on Wednesday, July 9th. BMO Capital Markets decreased their price target on shares of Magna International from $47.00 to $41.00 and set an "outperform" rating for the company in a research note on Monday, May 5th. CIBC lifted their price target on shares of Magna International from $33.00 to $38.00 and gave the stock a "neutral" rating in a research note on Monday, May 5th. TD Securities lifted their price target on shares of Magna International from $50.00 to $52.00 and gave the stock a "buy" rating in a research note on Tuesday, August 5th. Finally, Bank of America lifted their price target on shares of Magna International from $42.00 to $45.00 and gave the stock a "neutral" rating in a research note on Monday, June 16th. One analyst has rated the stock with a sell rating, thirteen have given a hold rating and four have assigned a buy rating to the company. According to data from MarketBeat.com, the stock presently has an average rating of "Hold" and an average target price of $42.36.

Magna International Stock Up 1.7%

Shares of NYSE MGA traded up $0.76 during midday trading on Friday, hitting $44.82. The company's stock had a trading volume of 531,971 shares, compared to its average volume of 1,801,654. The business's fifty day simple moving average is $40.30 and its two-hundred day simple moving average is $37.45. 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 firm has a market capitalization of $12.63 billion, a price-to-earnings ratio of 10.52, a price-to-earnings-growth ratio of 0.97 and a beta of 1.51.

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

Magna International Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Friday, August 29th. Shareholders of record on Friday, August 15th will be issued a dividend of $0.485 per share. The ex-dividend date of this dividend is Friday, August 15th. This represents a $1.94 dividend on an annualized basis and a yield of 4.3%. Magna International's dividend payout ratio (DPR) is presently 45.54%.

Institutional Trading of Magna International

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Bank of New York Mellon Corp increased its holdings in shares of Magna International by 5.5% in the 1st quarter. Bank of New York Mellon Corp now owns 252,500 shares of the company's stock valued at $8,582,000 after acquiring an additional 13,220 shares during the period. ARK Investment Management LLC acquired a new position in shares of Magna International in the 1st quarter valued at $5,478,000. Janney Montgomery Scott LLC increased its holdings in shares of Magna International by 19.9% in the 1st quarter. Janney Montgomery Scott LLC now owns 251,832 shares of the company's stock valued at $8,560,000 after acquiring an additional 41,811 shares during the period. ARGA Investment Management LP increased its holdings in shares of Magna International by 17.0% in the 1st quarter. ARGA Investment Management LP now owns 2,997,857 shares of the company's stock valued at $101,890,000 after acquiring an additional 436,366 shares during the period. Finally, Public Employees Retirement System of Ohio increased its holdings in shares of Magna International by 99.3% in the 4th quarter. Public Employees Retirement System of Ohio now owns 50,462 shares of the company's stock valued at $2,108,000 after acquiring an additional 25,142 shares during the period. Institutional investors and hedge funds own 67.49% of the company's stock.

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.