Magna International Inc. (NYSE:MGA) Increases Dividend to $0.50 Per Share

Magna International Inc. (NYSE:MGA) (TSE:MG) announced a quarterly dividend on Friday, February 13th. Stockholders of record on Friday, February 27th will be paid a dividend of 0.495 per share on Friday, March 13th. This represents a c) dividend on an annualized basis and a dividend yield of 2.9%. The ex-dividend date is Friday, February 27th. This is a 2.1% increase from Magna International’s previous quarterly dividend of $0.49.

Magna International has decreased its dividend by an average of 0.0%annually over the last three years and has increased its dividend every year for the last 6 years. Magna International has a payout ratio of 33.7% meaning its dividend is sufficiently covered by earnings. Research analysts expect Magna International to earn $6.66 per share next year, which means the company should continue to be able to cover its $1.94 annual dividend with an expected future payout ratio of 29.1%.

Magna International Trading Up 18.6%

Shares of MGA stock traded up $10.76 on Friday, hitting $68.58. The stock had a trading volume of 8,621,810 shares, compared to its average volume of 1,935,380. The company’s 50 day moving average price is $53.82 and its 200-day moving average price is $48.83. Magna International has a 1 year low of $30.39 and a 1 year high of $69.94. The company has a debt-to-equity ratio of 0.38, a current ratio of 1.18 and a quick ratio of 0.83. The firm has a market capitalization of $19.12 billion, a P/E ratio of 18.74 and a beta of 1.50.

Magna International (NYSE:MGA) (TSE:MG) last announced its earnings results on Friday, February 13th. The company reported $2.18 EPS for the quarter, beating analysts’ consensus estimates of $1.81 by $0.37. The company had revenue of $10.74 billion during the quarter, compared to analysts’ expectations of $10.54 billion. Magna International had a return on equity of 11.88% and a net margin of 2.50%.Magna International’s revenue for the quarter was up 2.1% on a year-over-year basis. During the same period last year, the business posted $1.69 EPS. Magna International has set its FY 2026 guidance at 6.250-7.250 EPS. Analysts anticipate that Magna International will post 5.87 earnings per share for the current year.

Wall Street Analyst Weigh In

MGA has been the subject of a number of research reports. Wall Street Zen upgraded shares of Magna International from a “buy” rating to a “strong-buy” rating in a report on Monday, January 19th. Evercore raised their price target on shares of Magna International from $47.00 to $52.00 and gave the company an “in-line” rating in a research report on Monday, November 24th. JPMorgan Chase & Co. boosted their price target on shares of Magna International from $53.00 to $57.00 and gave the stock an “overweight” rating in a research note on Monday, November 3rd. Scotiabank increased their price objective on Magna International from $52.00 to $57.00 and gave the company a “sector perform” rating in a research note on Tuesday, January 27th. Finally, Wells Fargo & Company lifted their target price on Magna International from $50.00 to $58.00 and gave the company an “equal weight” rating in a report on Monday, January 12th. Three investment analysts have rated the stock with a Buy rating, fourteen have issued a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the company has an average rating of “Hold” and a consensus price target of $52.80.

Magna International Company Profile

Magna International Inc is a leading global automotive supplier specializing in the design, engineering, and manufacturing of vehicle systems, assemblies, modules, and components. Headquartered in Aurora, Ontario, the company partners with major original equipment manufacturers (OEMs) to develop technologies and solutions that enhance vehicle performance, safety, comfort, and fuel efficiency. Magna’s broad portfolio encompasses body exteriors and structures, powertrain systems, seating and interiors, roof systems, mirror systems, and advanced driver assistance systems (ADAS).

The company operates more than 350 manufacturing and assembly facilities and over 100 innovation centers across 27 countries, serving customers in North America, Europe, Asia, South America, and Africa.