Scotiabank Predicts Lower Earnings for Magna International

Key Points

• Scotiabank trimmed its FY2027 EPS estimate for Magna International to $10.51 from $10.77, while keeping a Strong-Buy rating on the stock. The new forecast still sits above the consensus estimate of $8.89 per share.
• Magna shares were down 2.7% in Friday trading, opening at C$92.59. The company’s valuation metrics include a market cap of C$25.21 billion and a 2.1% dividend yield.
• Magna recently reported quarterly EPS of C$1.92 on revenue of C$14.43 billion and has seen heavy insider selling over the past 90 days. Insiders sold 150,405 shares worth about $13.5 million in that period.

Magna International Inc. (TSE:MG - Free Report) NYSE: MGA - Stock analysts at Scotiabank lowered their FY2027 earnings per share (EPS) estimates for Magna International in a research note issued to investors on Thursday, July 23rd. Scotiabank analyst J. Goldman now anticipates that the company will post earnings per share of $10.51 for the year, down from their prior estimate of $10.77. Scotiabank has a "Strong-Buy" rating on the stock. The consensus estimate for Magna International's current full-year earnings is $8.89 per share.

Separately, Veritas upgraded shares of Magna International to a "strong-buy" rating in a research report on Monday, May 4th. Four analysts have rated the stock with a Strong Buy rating and two have given a Hold rating to the stock. Based on data from MarketBeat.com, the stock presently has an average rating of "Buy".

Magna International Trading Down 2.7%

TSE MG opened at C$92.59 on Friday. The stock has a market capitalization of C$25.21 billion, a price-to-earnings ratio of 39.07, a PEG ratio of 0.45 and a beta of 2.13. Magna International has a one year low of C$56.04 and a one year high of C$97.04. The company has a debt-to-equity ratio of 56.24, a current ratio of 1.22 and a quick ratio of 0.83. The business's fifty day moving average is C$91.20 and its 200-day moving average is C$83.79.

Magna International (TSE:MG - Get Free Report) NYSE: MGA last announced its quarterly earnings data on Friday, May 1st. The company reported C$1.92 earnings per share (EPS) for the quarter. Magna International had a return on equity of 5.43% and a net margin of 1.59%.The firm had revenue of C$14.43 billion during the quarter.

Magna International Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Friday, May 29th. Investors of record on Friday, May 29th were paid a $0.495 dividend. The ex-dividend date was Friday, May 15th. This represents a $1.98 annualized dividend and a yield of 2.1%. Magna International's dividend payout ratio is presently 82.28%.

Insider Transactions at Magna International

In other Magna International news, insider Uwe Paul-Ernst Geissinger sold 22,434 shares of the firm's stock in a transaction on Monday, May 11th. The stock was sold at an average price of C$86.46, for a total value of C$1,939,643.64. Following the completion of the sale, the insider directly owned 30,470 shares of the company's stock, valued at C$2,634,436.20. This trade represents a 42.41% decrease in their ownership of the stock. Also, insider Tom Rucker Joerg sold 39,210 shares of the firm's stock in a transaction on Tuesday, June 2nd. The stock was sold at an average price of C$92.58, for a total value of C$3,630,061.80. Following the completion of the sale, the insider directly owned 31,633 shares of the company's stock, valued at C$2,928,583.14. This represents a 55.35% decrease in their ownership of the stock. Insiders have sold a total of 150,405 shares of company stock worth $13,505,134 in the last ninety days. Company insiders own 6.18% of the company's stock.

About Magna International

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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