Magna International (NYSE:MGA) Share Price Crosses Above Fifty Day Moving Average Following Analyst Downgrade

Key Points

• Magna International shares rose above their 50-day moving average, reaching $66.18 and last trading near $65.43 after Barclays raised its price target from $68 to $70 while maintaining an equal-weight rating.
• Analyst sentiment remains mixed, with a consensus “Hold” rating and an average price target of $68.73; institutional investors and hedge funds own 67.49% of the company.
• Magna reported quarterly EPS of $1.83, beating estimates of $1.58, although revenue declined 3.9% year over year. The company declared a quarterly dividend of $0.495 per share, equivalent to a 3.0% annual yield.

Magna International Inc. (NYSE:MGA - Get Free Report) TSE: MG's share price crossed above its 50-day moving average during trading on Monday after Barclays raised their price target on the stock from $68.00 to $70.00. The stock has a 50-day moving average of $64.89 and traded as high as $66.18. Barclays currently has an equal weight rating on the stock. Magna International shares last traded at $65.4320, with a volume of 988,636 shares traded.

A number of other research analysts have also commented on MGA. Royal Bank Of Canada raised their price objective on shares of Magna International from $66.00 to $69.00 and gave the company a "sector perform" rating in a research note on Monday, August 3rd. UBS Group lifted their price objective on shares of Magna International from $62.00 to $64.00 and gave the company a "neutral" rating in a research note on Thursday, July 9th. Scotiabank lifted their price objective 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. Wall Street Zen lowered Magna International from a "strong-buy" rating to a "buy" rating in a research note on Saturday, September 12th. Finally, JPMorgan Chase & Co. cut shares of Magna International from an "overweight" rating to a "neutral" rating and cut their target price for the company from $77.00 to $72.00 in a research note on Tuesday, September 15th. One research analyst has rated the stock with a Strong Buy rating, five have given a Buy rating, twelve have given a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, Magna International has a consensus rating of "Hold" and an average target price of $68.73.

Hedge Funds Weigh In On Magna International

Hedge funds and other institutional investors have recently made changes to their positions in the company. Frank Rimerman Advisors LLC raised its position in Magna International by 2.4% in the third quarter. Frank Rimerman Advisors LLC now owns 6,744 shares of the company's stock valued at $429,000 after purchasing an additional 156 shares during the last quarter. Cordatus Wealth Management LLC grew its holdings in shares of Magna International by 2.8% in the third quarter. Cordatus Wealth Management LLC now owns 6,181 shares of the company's stock valued at $394,000 after acquiring an additional 168 shares in the last quarter. Steph & Co. raised its holdings in shares of Magna International by 2.1% in the 3rd quarter. Steph & Co. now owns 8,373 shares of the company's stock worth $533,000 after purchasing an additional 172 shares during the period. Parallel Advisors LLC lifted its stake in shares of Magna International by 9.1% during the 1st quarter. Parallel Advisors LLC now owns 3,299 shares of the company's stock valued at $184,000 after buying an additional 275 shares in the last quarter. Finally, Andra AP fonden grew its stake in Magna International by 1.1% during the second quarter. Andra AP fonden now owns 28,200 shares of the company's stock valued at $1,852,000 after acquiring an additional 300 shares in the last quarter. 67.49% of the stock is currently owned by institutional investors and hedge funds.

Magna International Price Performance

The company has a debt-to-equity ratio of 0.38, a current ratio of 1.22 and a quick ratio of 0.88. The business's 50 day moving average is $64.89 and its two-hundred day moving average is $62.70. The firm has a market capitalization of $16.99 billion, a PE ratio of 20.97, a P/E/G ratio of 0.68 and a beta of 1.46.

Magna International (NYSE:MGA - Get Free Report) TSE: MG last posted its earnings results on Friday, October 30th. The company reported $1.83 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.58 by $0.25. The firm had revenue of $9.86 billion for the quarter, compared to analysts' expectations of $10.01 billion. Magna International had a return on equity of 15.04% and a net margin of 1.80%. The business's revenue was down 3.9% compared to the same quarter last year. During the same period in the previous year, the firm earned $1.33 earnings per share. As a group, research analysts anticipate that Magna International Inc. will post 7.03 EPS for the current year.

Magna International Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, November 27th. Investors of record on Friday, November 13th will be issued a dividend of $0.4950 per share. The ex-dividend date of this dividend is Friday, November 13th. This represents a $1.98 dividend on an annualized basis and a dividend yield of 3.0%. Magna International's payout ratio is 63.46%.

About Magna International

Magna International Inc is a global automotive supplier headquartered in Aurora, Ontario, Canada. The company designs, engineers and manufactures components and systems for automakers, serving vehicle manufacturers across North America, Europe and Asia.

Its products and services span several automotive categories, including body and chassis structures, exterior systems, powertrain and driveline components, seating, vehicle electronics, lighting, mirrors, and advanced driver assistance technologies.

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