Zacks Investment Research lowered shares of Magna International, Inc. (NYSE:MGA) (TSE:MG) from a hold rating to a sell rating in a research note published on Wednesday, July 12th.

According to Zacks, “In the current fiscal, Magna International’s light vehicle production is expected to decline in North America which is presumed to have a negative impact in the sales figure. Also, fluctuating foreign currencies against the U.S. dollar will adversely affect the company’s sales and earnings. Its expansion in the powertrain and electronics business will incur higher warranty costs, resulting in increased capital expenditure. Moreover, the yearly earnings estimates for Magna International have been going down of late. Its shares have also underperformed over the last six months compared with the Zacks categorized Auto/Truck-Original Equipment industry.”

MGA has been the subject of several other research reports. BidaskClub cut shares of Magna International from a buy rating to a hold rating in a report on Saturday, June 17th. ValuEngine cut shares of Magna International from a strong-buy rating to a buy rating in a report on Friday, June 2nd. TD Securities upgraded shares of Magna International from a hold rating to a buy rating and upped their target price for the company from $50.00 to $55.00 in a report on Friday, May 12th. Royal Bank Of Canada upped their target price on shares of Magna International from $57.00 to $60.00 and gave the company an outperform rating in a report on Friday, May 12th. Finally, Cormark upgraded shares of Magna International from a buy rating to a top pick rating in a report on Tuesday, July 11th. Two analysts have rated the stock with a sell rating, four have assigned a hold rating, eight have assigned a buy rating and one has assigned a strong buy rating to the company’s stock. Magna International presently has a consensus rating of Buy and a consensus target price of $51.00.

Magna International (NYSE MGA) traded up 1.45% during midday trading on Wednesday, hitting $47.68. 1,139,629 shares of the stock traded hands. Magna International has a one year low of $36.77 and a one year high of $48.90. The company has a 50-day moving average price of $46.54 and a 200 day moving average price of $44.09. The stock has a market cap of $18.13 billion, a price-to-earnings ratio of 8.72 and a beta of 1.44.

Magna International (NYSE:MGA) (TSE:MG) last issued its earnings results on Thursday, May 11th. The company reported $1.53 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.34 by $0.19. Magna International had a net margin of 5.76% and a return on equity of 20.58%. The business had revenue of $9.37 billion during the quarter, compared to analysts’ expectations of $9.13 billion. During the same quarter in the prior year, the business posted $1.22 EPS. The company’s revenue for the quarter was up 5.3% on a year-over-year basis. Equities research analysts anticipate that Magna International will post $5.76 earnings per share for the current year.

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Several hedge funds have recently added to or reduced their stakes in the company. Tocqueville Asset Management L.P. boosted its stake in Magna International by 0.8% in the second quarter. Tocqueville Asset Management L.P. now owns 8,168 shares of the company’s stock valued at $378,000 after buying an additional 68 shares during the period. Herndon Capital Management LLC purchased a new stake in Magna International during the second quarter valued at approximately $1,517,000. Highstreet Asset Management Inc. boosted its stake in Magna International by 1,246.1% in the second quarter. Highstreet Asset Management Inc. now owns 234,960 shares of the company’s stock valued at $10,890,000 after buying an additional 217,505 shares during the period. Canada Pension Plan Investment Board purchased a new stake in Magna International during the second quarter valued at approximately $20,547,000. Finally, IFP Advisors Inc boosted its stake in Magna International by 19.5% in the second quarter. IFP Advisors Inc now owns 4,011 shares of the company’s stock valued at $186,000 after buying an additional 654 shares during the period. Institutional investors own 61.21% of the company’s stock.

Magna International Company Profile

Magna International Inc (Magna) is a global automotive supplier. The Company’s segments are North America, Europe, Asia, Rest of World, and Corporate and Other. The Company’s product capabilities include producing body, chassis, exterior, seating, powertrain, electronic, active driver assistance, vision, closure, and roof systems and modules, as well as vehicle engineering and contract manufacturing.

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Analyst Recommendations for Magna International (NYSE:MGA)

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