Magna International (NYSE:MGA) Cut to Buy at Wall Street Zen

Wall Street Zen cut shares of Magna International (NYSE:MGA) (TSE:MG) from a strong-buy rating to a buy rating in a report released on Saturday.

A number of other research firms also recently commented on MGA. Barclays increased their price objective on shares of Magna International from $66.00 to $68.00 and gave the company an “equal weight” rating in a research note on Friday, August 7th. Scotiabank boosted their target price on shares of Magna International from $74.00 to $78.00 and gave the stock a “sector outperform” rating in a research report on Monday, August 3rd. Zacks Research downgraded shares of Magna International from a “strong-buy” rating to a “hold” rating in a research report on Friday, May 1st. Weiss Ratings upgraded shares of Magna International from a “hold (c)” rating to a “hold (c+)” rating in a research note on Wednesday, July 29th. Finally, Royal Bank Of Canada increased their price target on shares of Magna International from $66.00 to $69.00 and gave the stock a “sector perform” rating in a research report on Monday, August 3rd. One research analyst has rated the stock with a Strong Buy rating, eight have given a Buy rating, nine have issued a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat, the stock has an average rating of “Hold” and a consensus target price of $67.93.

Magna International Price Performance

MGA stock opened at $71.39 on Friday. The stock’s 50 day moving average is $66.62 and its two-hundred day moving average is $62.24. Magna International has a 52-week low of $43.11 and a 52-week high of $71.96. The company has a market capitalization of $19.09 billion, a PE ratio of 25.87, a P/E/G ratio of 0.76 and a beta of 1.44. The company has a quick ratio of 0.88, a current ratio of 1.22 and a debt-to-equity ratio of 0.38.

Magna International (NYSE:MGA) (TSE:MG) last released its earnings results on Friday, July 31st. The company reported $1.86 EPS for the quarter, beating the consensus estimate of $1.53 by $0.33. Magna International had a return on equity of 15.04% and a net margin of 1.80%.The company had revenue of $10.84 billion during the quarter, compared to analysts’ expectations of $10.63 billion. During the same period in the prior year, the business posted $1.44 EPS. The business’s revenue was up 3.3% on a year-over-year basis. Magna International has set its FY 2026 guidance at 6.700-7.300 EPS. Analysts predict that Magna International will post 7.05 earnings per share for the current fiscal year.

Magna International Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, August 28th. Investors of record on Friday, August 14th will be paid a dividend of $0.495 per share. The ex-dividend date is Friday, August 14th. This represents a $1.98 annualized dividend and a yield of 2.8%. Magna International’s dividend payout ratio (DPR) is 71.74%.

Hedge Funds Weigh In On Magna International

Hedge funds have recently added to or reduced their stakes in the business. Bank of New York Mellon Corp acquired a new stake in shares of Magna International during the second quarter worth $28,495,000. Geode Capital Management LLC lifted its position in shares of Magna International by 6.8% in the 4th quarter. Geode Capital Management LLC now owns 2,426,843 shares of the company’s stock worth $128,774,000 after buying an additional 154,710 shares during the last quarter. Russell Investments Group Ltd. boosted its holdings in shares of Magna International by 7.8% in the 4th quarter. Russell Investments Group Ltd. now owns 2,090,887 shares of the company’s stock valued at $111,549,000 after buying an additional 151,819 shares during the period. Public Employees Retirement System of Ohio acquired a new position in shares of Magna International in the 2nd quarter valued at about $9,160,000. Finally, Plato Investment Management Ltd bought a new stake in shares of Magna International during the 2nd quarter valued at about $7,473,000. Institutional investors and hedge funds own 67.49% of the company’s stock.

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.