Magna International (TSE:MG) Share Price Passes Above 200-Day Moving Average - Should You Sell?

Key Points

• Magna International shares moved above their 200-day moving average, reaching C$92.38 before last trading at C$91.04, compared with the average of C$87.63. The stock has a consensus “Strong Buy” rating from analysts.
• The company reported quarterly revenue of C$15.60 billion and earnings of C$2.64 per share, while analysts expect full-year EPS of approximately 8.89. Magna’s net margin was 1.77% and return on equity was 6.15%.
• Magna declared a quarterly dividend of C$0.495 per share, equivalent to C$1.98 annually and a 2.2% yield. However, insiders recently sold shares, including transactions that reduced two insiders’ holdings by 11.05% and 55.35%.

Magna International Inc. (TSE:MG - Get Free Report) NYSE: MGA shares crossed above its two hundred day moving average during trading on Thursday . The stock has a two hundred day moving average of C$87.63 and traded as high as C$92.38. Magna International shares last traded at C$91.04, with a volume of 998,690 shares traded.

Analysts Set New Price Targets

Separately, Veritas raised Magna International to a "strong-buy" rating in a report on Monday, May 4th. Four research analysts have rated the stock with a Strong Buy rating and one has issued a Hold rating to the company's stock. Based on data from MarketBeat, the company presently has a consensus rating of "Strong Buy".

Magna International Trading Down 0.5%

The company has a debt-to-equity ratio of 55.07, a current ratio of 1.22 and a quick ratio of 0.83. The company has a market capitalization of C$25.17 billion, a price-to-earnings ratio of 33.47, a price-to-earnings-growth ratio of 0.45 and a beta of 2.11. The business's 50 day simple moving average is C$94.33 and its 200 day simple moving average is C$87.63.

Magna International (TSE:MG - Get Free Report) NYSE: MGA last announced its earnings results on Friday, July 31st. The company reported C$2.64 earnings per share for the quarter. Magna International had a net margin of 1.77% and a return on equity of 6.15%. The business had revenue of C$15.60 billion during the quarter. Research analysts anticipate that Magna International Inc. will post 8.8948171 EPS for the current year.

Magna International Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, August 28th. Shareholders of record on Friday, August 28th will be paid a dividend of $0.495 per share. The ex-dividend date of this dividend is Friday, August 14th. This represents a $1.98 annualized dividend and a yield of 2.2%. Magna International's dividend payout ratio is currently 72.06%.

Insider Activity at Magna International

In other Magna International news, insider Bruce Cluney sold 5,000 shares of Magna International stock in a transaction that occurred on Monday, August 3rd. The stock was sold at an average price of C$95.22, for a total value of C$476,100.00. Following the transaction, the insider directly owned 40,239 shares in the company, valued at approximately C$3,831,557.58. This trade represents a 11.05% decrease in their position. Also, insider Tom Rucker Joerg sold 39,210 shares of the business's stock in a transaction that occurred on Tuesday, June 2nd. The shares were sold at an average price of C$92.58, for a total value of C$3,630,061.80. Following the completion of the transaction, the insider directly owned 31,633 shares in the company, valued at approximately C$2,928,583.14. The trade was a 55.35% decrease in their position. 6.18% of the stock is owned by corporate insiders.

Magna International Company Profile

Magna is one of the world's largest automotive suppliers and a trusted partner to automakers in the industry's most critical markets-North America, Europe, and China. With a global team and footprint spanning 28 countries, we bring unmatched scale, trusted reliability, and proven execution. Backed by nearly seven decades of experience, we combine deep manufacturing expertise with innovative vehicle systems to deliver performance, safety and quality.

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