Magna International, Inc. (NYSE:MGA) Downgraded to Sell at Zacks Investment Research
Magna International, Inc. (NYSE:MGA) (TSE:MG) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a report released on Wednesday.
According to Zacks, “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. Its expansion in the powertrain and electronics business will incur higher warranty costs, resulting in increased capital expenditure. Moreover, the yearly earnings estimates for Magna International have been going down of late. Its shares have also underperformed over the last six months compared with the Zacks categorized Auto/Truck-Original Equipment industry.”
Other equities research analysts have also recently issued reports about the company. Cormark raised Magna International from a “buy” rating to a “top pick” rating in a research note on Tuesday. Morgan Stanley reduced their price target on Magna International from $60.00 to $56.00 and set an “overweight” rating on the stock in a research note on Friday, June 9th. Scotiabank upped their price target on Magna International from $65.00 to $68.00 and gave the stock an “outperform” rating in a research note on Friday, May 12th. Royal Bank Of Canada upped their price target on Magna International from $57.00 to $60.00 and gave the stock an “outperform” rating in a research note on Friday, May 12th. Finally, ValuEngine cut Magna International from a “strong-buy” rating to a “buy” rating in a research note on Friday, June 2nd. Two investment analysts have rated the stock with a sell rating, three have issued a hold rating, nine have issued a buy rating and one has issued a strong buy rating to the stock. Magna International has an average rating of “Buy” and a consensus price target of $50.05.
Shares of Magna International (NYSE:MGA) traded up 0.84% during mid-day trading on Wednesday, hitting $47.92. 1,570,039 shares of the stock traded hands. Magna International has a 52 week low of $34.36 and a 52 week high of $48.21. The stock has a market cap of $18.22 billion, a price-to-earnings ratio of 8.76 and a beta of 1.44. The firm’s 50-day moving average is $45.20 and its 200-day moving average is $43.67.
Magna International (NYSE:MGA) (TSE:MG) last issued its quarterly earnings results on Thursday, May 11th. The company reported $1.53 earnings per share for the quarter, topping the Thomson Reuters’ consensus estimate of $1.34 by $0.19. The company had revenue of $9.37 billion for the quarter, compared to analysts’ expectations of $9.13 billion. Magna International had a return on equity of 20.58% and a net margin of 5.76%. The firm’s revenue for the quarter was up 5.3% on a year-over-year basis. During the same period in the prior year, the firm earned $1.22 earnings per share. On average, analysts forecast that Magna International will post $5.77 earnings per share for the current year.
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Several large investors have recently added to or reduced their stakes in the company. Mckinley Capital Management LLC Delaware bought a new stake in Magna International during the first quarter worth approximately $173,000. SRS Capital Advisors Inc. boosted its stake in Magna International by 16.4% in the first quarter. SRS Capital Advisors Inc. now owns 3,239 shares of the company’s stock worth $139,000 after buying an additional 456 shares in the last quarter. IFP Advisors Inc boosted its stake in Magna International by 3.8% in the first quarter. IFP Advisors Inc now owns 3,357 shares of the company’s stock worth $145,000 after buying an additional 124 shares in the last quarter. Advisory Services Network LLC bought a new stake in Magna International during the first quarter worth approximately $157,000. Finally, Greenleaf Trust bought a new stake in Magna International during the first quarter worth approximately $216,000. 61.40% of the stock is currently owned by hedge funds and other 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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