Magna International (NYSE:MGA) Shares Down 7.8% – What’s Next?

Magna International Inc. (NYSE:MGA) (TSE:MG) fell 7.8% during trading on Thursday . The company traded as low as $34.56 and last traded at $34.71. 740,386 shares changed hands during mid-day trading, a decline of 56% from the average session volume of 1,684,318 shares. The stock had previously closed at $37.65.

Analyst Upgrades and Downgrades

A number of equities analysts have issued reports on MGA shares. Royal Bank of Canada cut their price objective on shares of Magna International from $52.00 to $51.00 and set an “outperform” rating on the stock in a report on Tuesday, February 18th. The Goldman Sachs Group cut shares of Magna International from a “neutral” rating to a “sell” rating and cut their price target for the stock from $42.00 to $41.00 in a report on Wednesday, December 11th. Barclays decreased their price objective on shares of Magna International from $50.00 to $47.00 and set an “equal weight” rating for the company in a research note on Tuesday, February 18th. Evercore ISI dropped their target price on shares of Magna International from $50.00 to $45.00 and set an “in-line” rating on the stock in a research report on Tuesday, February 18th. Finally, Raymond James reduced their target price on Magna International from $53.00 to $50.00 and set a “market perform” rating for the company in a report on Tuesday, February 18th. One research analyst has rated the stock with a sell rating, thirteen have assigned a hold rating and six have issued a buy rating to the company’s stock. According to data from MarketBeat, the company currently has a consensus rating of “Hold” and an average price target of $47.03.

Magna International Price Performance

The company has a market cap of $9.58 billion, a PE ratio of 9.69, a price-to-earnings-growth ratio of 0.63 and a beta of 1.65. The business has a 50 day moving average of $38.03 and a 200 day moving average of $40.86. The company has a debt-to-equity ratio of 0.35, a current ratio of 1.08 and a quick ratio of 0.77.

Magna International (NYSE:MGA) (TSE:MG) last announced its earnings results on Friday, February 14th. The company reported $1.69 earnings per share for the quarter, beating analysts’ consensus estimates of $1.46 by $0.23. Magna International had a net margin of 2.36% and a return on equity of 12.78%. The firm had revenue of $10.63 billion for the quarter, compared to analyst estimates of $10.32 billion. During the same quarter in the previous year, the firm posted $1.33 EPS. The company’s revenue for the quarter was up 1.7% compared to the same quarter last year. As a group, research analysts predict that Magna International Inc. will post 5.87 EPS for the current year.

Magna International Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Friday, March 14th. Investors of record on Friday, February 28th were given a dividend of $0.485 per share. This is a boost from Magna International’s previous quarterly dividend of $0.48. This represents a $1.94 dividend on an annualized basis and a yield of 5.71%. The ex-dividend date was Friday, February 28th. Magna International’s dividend payout ratio (DPR) is 55.27%.

Institutional Trading of Magna International

Several hedge funds and other institutional investors have recently made changes to their positions in MGA. ARGA Investment Management LP raised its holdings in Magna International by 158.1% in the 4th quarter. ARGA Investment Management LP now owns 2,561,491 shares of the company’s stock worth $107,049,000 after acquiring an additional 1,568,953 shares during the last quarter. Russell Investments Group Ltd. raised its stake in shares of Magna International by 52.3% in the fourth quarter. Russell Investments Group Ltd. now owns 2,395,373 shares of the company’s stock worth $100,087,000 after purchasing an additional 822,375 shares during the last quarter. Toronto Dominion Bank lifted its holdings in shares of Magna International by 1.2% during the third quarter. Toronto Dominion Bank now owns 1,627,927 shares of the company’s stock valued at $66,810,000 after purchasing an additional 18,704 shares in the last quarter. Geode Capital Management LLC boosted its position in shares of Magna International by 32.2% during the fourth quarter. Geode Capital Management LLC now owns 1,523,196 shares of the company’s stock valued at $63,280,000 after buying an additional 371,437 shares during the last quarter. Finally, Mufg Securities Canada LTD. increased its holdings in Magna International by 72.1% in the 4th quarter. Mufg Securities Canada LTD. now owns 412,454 shares of the company’s stock worth $17,228,000 after buying an additional 172,754 shares in the last quarter. Hedge funds and other institutional investors own 67.49% of the company’s stock.

About Magna International

Magna International Inc designs, engineers, and manufactures components, assemblies, systems, subsystems, and modules for original equipment manufacturers of vehicles and light trucks worldwide. It operates through four segments: Body Exteriors & Structures, Power & Vision, Seating Systems, and Complete Vehicles.