Magna International (NYSE:MGA) Upgraded to “Hold” at Zacks Investment Research

Posted by on Jun 7th, 2022

Magna International (NYSE:MGA – Get Rating) (TSE:MG) was upgraded by Zacks Investment Research from a “sell” rating to a “hold” rating in a research report issued on Tuesday, Zacks.com reports. The brokerage presently has a $70.00 price objective on the stock. Zacks Investment Research‘s price target indicates a potential upside of 6.06% from the stock’s previous close.

According to Zacks, “Magna’s broad range of product offerings including a solid portfolio of e-powertrain products along with a strong competitive position in battery enclosures augurs well. Its sharp focus on developing ADAS technology also offers ample growth visibility. The automotive parts supplier anticipates significant sales growth over the next few years from joint ventures (JVs) including LG e-powertrain JV, integrated eDrive JV in China and a seating joint venture in North America. However, the company expects significant chip shortages to induce lost sales in 2022. As such, Magna has trimmed its full-year projections. High commodity and R&D costs, manufacturing inefficiencies, tough labor market and logistical challenges will continue to play spoilsport. Thus, investors are advised to wait for a better entry point.”

Several other equities analysts have also recently issued reports on the stock. Raymond James set a $68.00 price objective on shares of Magna International and gave the stock a “market perform” rating in a research note on Monday, May 2nd. Wells Fargo & Company decreased their target price on shares of Magna International from $80.00 to $72.00 in a report on Monday, May 2nd. Exane BNP Paribas initiated coverage on shares of Magna International in a report on Monday, April 11th. They issued an “underperform” rating for the company. TD Securities decreased their target price on shares of Magna International from $90.00 to $86.00 and set a “buy” rating for the company in a report on Monday, May 2nd. Finally, The Goldman Sachs Group decreased their target price on shares of Magna International from $85.00 to $72.00 and set a “buy” rating for the company in a report on Wednesday, June 1st. Two investment analysts have rated the stock with a sell rating, five have given a hold rating and seven have given a buy rating to the company’s stock. According to MarketBeat, the company presently has an average rating of “Hold” and a consensus price target of $76.00.

Shares of MGA traded down $0.80 during mid-day trading on Tuesday, hitting $66.00. The company’s stock had a trading volume of 53,642 shares, compared to its average volume of 1,155,953. The firm has a 50-day moving average price of $62.01 and a 200 day moving average price of $71.24. The stock has a market capitalization of $19.29 billion, a price-to-earnings ratio of 15.72, a PEG ratio of 0.70 and a beta of 1.42. The company has a debt-to-equity ratio of 0.29, a current ratio of 1.30 and a quick ratio of 0.89. Magna International has a fifty-two week low of $54.60 and a fifty-two week high of $104.28.

Magna International (NYSE:MGA – Get Rating) (TSE:MG) last announced its quarterly earnings data on Friday, April 29th. The company reported $1.28 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.05 by $0.23. The company had revenue of $9.64 billion for the quarter, compared to analysts’ expectations of $9.03 billion. Magna International had a net margin of 3.54% and a return on equity of 11.21%. The business’s revenue was down 5.3% compared to the same quarter last year. During the same quarter in the previous year, the company posted $1.86 EPS. As a group, equities analysts anticipate that Magna International will post 4.97 EPS for the current fiscal year.

A number of hedge funds have recently made changes to their positions in MGA. Geode Capital Management LLC boosted its stake in Magna International by 13.0% during the third quarter. Geode Capital Management LLC now owns 731,097 shares of the company’s stock worth $54,741,000 after buying an additional 84,302 shares in the last quarter. Evoke Wealth LLC boosted its stake in Magna International by 121.2% during the third quarter. Evoke Wealth LLC now owns 500 shares of the company’s stock worth $37,000 after buying an additional 274 shares in the last quarter. Neuberger Berman Group LLC boosted its stake in Magna International by 134.4% during the third quarter. Neuberger Berman Group LLC now owns 309,497 shares of the company’s stock worth $23,318,000 after buying an additional 177,475 shares in the last quarter. AXA S.A. boosted its stake in Magna International by 16.3% during the third quarter. AXA S.A. now owns 120,889 shares of the company’s stock worth $9,095,000 after buying an additional 16,931 shares in the last quarter. Finally, BNP Paribas Arbitrage SA boosted its stake in Magna International by 103.6% during the third quarter. BNP Paribas Arbitrage SA now owns 11,520 shares of the company’s stock worth $867,000 after buying an additional 5,861 shares in the last quarter. 62.57% of the stock is currently owned by institutional investors and hedge funds.

Magna International Company Profile (Get Rating)

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.

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