Magna International (NYSE:MGA) Sets New 12-Month Low Following Weak Earnings

Magna International Inc. (NYSE:MGA) (TSE:MG) reached a new 52-week low during trading on Friday after the company announced weaker than expected quarterly earnings. The stock traded as low as $46.11 and last traded at $47.37, with a volume of 1092785 shares traded. The stock had previously closed at $48.42.

The company reported $1.08 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $1.26 by ($0.18). The firm had revenue of $10.97 billion during the quarter, compared to the consensus estimate of $10.97 billion. Magna International had a return on equity of 13.15% and a net margin of 2.83%. The business’s revenue was up 2.8% compared to the same quarter last year. During the same period in the previous year, the firm earned $1.11 EPS.

Magna International Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Friday, May 31st. Investors of record on Friday, May 17th will be paid a dividend of $0.475 per share. This represents a $1.90 dividend on an annualized basis and a yield of 4.07%. The ex-dividend date is Thursday, May 16th. Magna International’s payout ratio is 45.02%.

Analyst Upgrades and Downgrades

A number of analysts have recently weighed in on MGA shares. BMO Capital Markets reduced their target price on shares of Magna International from $67.00 to $65.00 and set an “outperform” rating on the stock in a report on Monday, February 12th. JPMorgan Chase & Co. boosted their price objective on Magna International from $69.00 to $71.00 and gave the stock an “overweight” rating in a research note on Monday, April 22nd. TD Securities decreased their price objective on Magna International from $69.00 to $63.00 and set a “buy” rating on the stock in a research report on Monday, April 22nd. Evercore cut Magna International from an “outperform” rating to an “in-line” rating and dropped their target price for the stock from $75.00 to $62.00 in a report on Monday, April 15th. Finally, Wells Fargo & Company cut their target price on Magna International from $60.00 to $54.00 and set an “equal weight” rating on the stock in a research report on Monday, February 12th. Eleven analysts have rated the stock with a hold rating and five have issued a buy rating to the stock. According to MarketBeat, the company presently has a consensus rating of “Hold” and a consensus price target of $62.50.

Institutional Investors Weigh In On Magna International

Several large investors have recently added to or reduced their stakes in the stock. Sumitomo Mitsui Trust Holdings Inc. raised its stake in shares of Magna International by 18.5% during the third quarter. Sumitomo Mitsui Trust Holdings Inc. now owns 947,966 shares of the company’s stock valued at $50,921,000 after acquiring an additional 147,950 shares in the last quarter. Strengthening Families & Communities LLC raised its position in Magna International by 9.2% during the 3rd quarter. Strengthening Families & Communities LLC now owns 35,603 shares of the company’s stock valued at $1,909,000 after purchasing an additional 2,997 shares in the last quarter. Lorne Steinberg Wealth Management Inc. lifted its holdings in shares of Magna International by 2.2% in the 3rd quarter. Lorne Steinberg Wealth Management Inc. now owns 68,712 shares of the company’s stock worth $3,699,000 after buying an additional 1,449 shares during the period. Janney Montgomery Scott LLC grew its position in shares of Magna International by 1.2% during the 3rd quarter. Janney Montgomery Scott LLC now owns 144,583 shares of the company’s stock worth $7,751,000 after buying an additional 1,737 shares in the last quarter. Finally, Van ECK Associates Corp grew its position in shares of Magna International by 9.6% during the 3rd quarter. Van ECK Associates Corp now owns 3,576 shares of the company’s stock worth $192,000 after buying an additional 312 shares in the last quarter. 67.49% of the stock is owned by hedge funds and other institutional investors.

Magna International Stock Performance

The company has a quick ratio of 0.71, a current ratio of 1.06 and a debt-to-equity ratio of 0.34. The firm has a 50 day moving average price of $52.00 and a 200 day moving average price of $53.93. The stock has a market cap of $13.42 billion, a PE ratio of 11.07, a price-to-earnings-growth ratio of 0.49 and a beta of 1.69.

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.