Magna International Inc. (MGA) Downgraded by Zacks Investment Research
Magna International Inc. (NYSE:MGA) (TSE:MG) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a report issued on Thursday.
According to Zacks, “Magna International’s earnings and revenue rose year over year in first-quarter 2017 and also beat the Zacks Consensus estimate. The revenue outlook for each segment as well as overall have also been raised. The company’s operational efficiency and diverse product portfolio is expected to promote significant growth in the coming quarters. The company is involved in regular capital deployment to enhance shareholder value by paying relatively high dividends and repurchasing shares. However, currency headwinds, high warranty costs and lower light vehicle production in North America pose challenges to the company’s earnings. The company’s shares have underperformed over the last three months compared to the Zacks categorized Auto/Truck-Original Equipment industry, majorly due to vehicle production drop.”
A number of other equities research analysts have also issued reports on MGA. TD Securities raised Magna International from a “hold” rating to a “buy” rating and boosted their target price for the stock from $50.00 to $55.00 in a research report on Friday, May 12th. Royal Bank of Canada boosted their target price on Magna International from $57.00 to $60.00 and gave the stock an “outperform” rating in a research report on Friday, May 12th. Scotiabank boosted their target price on Magna International from $65.00 to $68.00 and gave the stock an “outperform” rating in a research report on Friday, May 12th. Finally, Macquarie raised Magna International from a “neutral” rating to an “outperform” rating in a research report on Monday, February 27th. One investment analyst has rated the stock with a sell rating, four have assigned a hold rating and six have assigned a buy rating to the stock. The company has a consensus rating of “Hold” and a consensus price target of $49.39.
Magna International (NYSE:MGA) traded up 0.93% on Thursday, reaching $44.59. The company’s stock had a trading volume of 706,029 shares. The firm has a 50-day moving average price of $41.83 and a 200 day moving average price of $42.76. The firm has a market capitalization of $16.96 billion, a P/E ratio of 8.15 and a beta of 1.48. Magna International has a 52-week low of $32.76 and a 52-week high of $47.21.
Magna International (NYSE:MGA) last announced its earnings results on Thursday, May 11th. The company reported $1.53 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.34 by $0.19. The company had revenue of $9.37 billion for the quarter, compared to analyst estimates of $9.13 billion. Magna International had a return on equity of 20.72% and a net margin of 5.67%. Magna International’s revenue for the quarter was up 5.3% compared to the same quarter last year. During the same period in the previous year, the firm earned $1.22 earnings per share. Equities analysts anticipate that Magna International will post $5.76 earnings per share for the current fiscal year.
The firm also recently declared a quarterly dividend, which will be paid on Friday, June 9th. Investors of record on Friday, May 26th will be given a dividend of $0.275 per share. This represents a $1.10 annualized dividend and a yield of 2.49%. The ex-dividend date is Wednesday, May 24th. Magna International’s payout ratio is 19.65%.
A number of hedge funds and other institutional investors have recently bought and sold shares of MGA. Comerica Bank raised its position in Magna International by 4.6% in the fourth quarter. Comerica Bank now owns 29,324 shares of the company’s stock valued at $1,315,000 after buying an additional 1,288 shares during the last quarter. Gulf International Bank UK Ltd raised its position in Magna International by 1.0% in the first quarter. Gulf International Bank UK Ltd now owns 121,604 shares of the company’s stock valued at $5,240,000 after buying an additional 1,200 shares during the last quarter. Becker Capital Management Inc. acquired a new position in Magna International during the third quarter valued at $20,737,000. Scout Investments Inc. raised its position in Magna International by 0.3% in the third quarter. Scout Investments Inc. now owns 940,898 shares of the company’s stock valued at $40,412,000 after buying an additional 2,445 shares during the last quarter. Finally, Johnson Investment Counsel Inc. acquired a new position in Magna International during the third quarter valued at $204,000. 59.75% of the stock is currently owned by hedge funds and other institutional investors.
About Magna International
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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