Zacks Investment Research Lowers Magna International, Inc. (MGA) to Hold
Zacks Investment Research downgraded shares of Magna International, Inc. (NYSE:MGA) (TSE:MG) from a buy rating to a hold rating in a research report sent to investors on Monday morning.
According to Zacks, “Magna International is well positioned to benefit from its leading position in the industry as well as its operational efficiency and diverse product portfolio. The company regularly undertakes capital deployment in order to enhance shareholder value. Also, its expansion strategy in emerging markets is expected to support results. However, 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.”
Several other research firms have also recently weighed in on MGA. ValuEngine cut Magna International from a strong-buy rating to a buy rating in a report on Friday, September 1st. Edward Jones cut Magna International from a buy rating to a hold rating in a report on Wednesday, July 26th. Morgan Stanley cut Magna International from an overweight rating to an equal weight rating and lowered their price target for the company from $56.00 to $47.00 in a report on Monday, August 28th. BidaskClub cut Magna International from a buy rating to a hold rating in a report on Monday, July 24th. Finally, Citigroup Inc. increased their price target on Magna International from $54.00 to $55.00 and gave the company a buy rating in a report on Thursday, August 17th. One analyst has rated the stock with a sell rating, five have assigned a hold rating, nine have assigned a buy rating and one has given a strong buy rating to the company’s stock. The company presently has an average rating of Buy and a consensus price target of $52.80.
Shares of Magna International (NYSE MGA) opened at 48.50 on Monday. The firm has a 50 day moving average price of $47.45 and a 200 day moving average price of $44.78. Magna International has a 52 week low of $36.77 and a 52 week high of $49.40. The company has a market capitalization of $17.94 billion, a price-to-earnings ratio of 8.76 and a beta of 1.43.
Magna International (NYSE:MGA) (TSE:MG) last released its quarterly earnings results on Friday, August 11th. The company reported $1.48 earnings per share for the quarter, beating the consensus estimate of $1.47 by $0.01. The firm had revenue of $9.68 billion for the quarter, compared to analysts’ expectations of $9.50 billion. Magna International had a return on equity of 20.01% and a net margin of 5.73%. The company’s revenue was up 2.6% compared to the same quarter last year. During the same period in the prior year, the firm earned $1.41 EPS. Equities analysts forecast that Magna International will post $5.89 EPS for the current year.
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The business also recently announced a quarterly dividend, which will be paid on Friday, September 15th. Investors of record on Friday, September 1st will be issued a $0.275 dividend. The ex-dividend date of this dividend is Wednesday, August 30th. This represents a $1.10 dividend on an annualized basis and a yield of 2.27%. Magna International’s dividend payout ratio is currently 19.86%.
A number of institutional investors have recently made changes to their positions in MGA. Cardinal Capital Management Inc. raised its holdings in Magna International by 2,712.5% in the 2nd quarter. Cardinal Capital Management Inc. now owns 987,200 shares of the company’s stock worth $45,676,000 after purchasing an additional 952,100 shares during the period. Russell Investments Group Ltd. raised its holdings in Magna International by 34.8% in the 2nd quarter. Russell Investments Group Ltd. now owns 2,020,359 shares of the company’s stock worth $93,453,000 after purchasing an additional 521,929 shares during the period. Canada Pension Plan Investment Board bought a new position in Magna International in the 2nd quarter worth $20,547,000. United Services Automobile Association raised its holdings in Magna International by 137.6% in the 1st quarter. United Services Automobile Association now owns 718,747 shares of the company’s stock worth $31,021,000 after purchasing an additional 416,297 shares during the period. Finally, Schroder Investment Management Group raised its holdings in Magna International by 28.4% in the 1st quarter. Schroder Investment Management Group now owns 1,852,568 shares of the company’s stock worth $107,838,000 after purchasing an additional 410,007 shares during the period. 59.73% of the stock is currently owned by institutional investors.
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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