Magna International, Inc. (NYSE:MGA) (TSE:MG) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research report issued on Tuesday.

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 one year compared with the Zacks categorized Auto/Truck-Original Equipment industry.”

A number of other research analysts have also recently weighed in on MGA. Cormark upgraded shares of Magna International from a “buy” rating to a “top pick” rating in a report on Tuesday, July 11th. BidaskClub upgraded shares of Magna International from a “hold” rating to a “buy” rating in a report on Saturday, July 1st. Morgan Stanley dropped their price objective on shares of Magna International from $60.00 to $56.00 and set an “overweight” rating for the company in a report on Friday, June 9th. Royal Bank Of Canada lifted their price objective on shares of Magna International from $57.00 to $60.00 and gave the company an “outperform” rating in a report on Friday, May 12th. Finally, ValuEngine cut shares of Magna International from a “strong-buy” rating to a “buy” rating in a report on Friday, June 2nd. Two investment analysts have rated the stock with a sell rating, three have given a hold rating, nine have given a buy rating and one has issued a strong buy rating to the company. The stock has an average rating of “Buy” and a consensus price target of $50.05.

Magna International (MGA) traded down 0.04% during mid-day trading on Tuesday, reaching $47.66. 1,291,799 shares of the company were exchanged. Magna International has a 1-year low of $36.77 and a 1-year high of $48.35. The company has a 50 day moving average of $45.20 and a 200-day moving average of $43.67. The company has a market capitalization of $18.12 billion, a price-to-earnings ratio of 8.71 and a beta of 1.44.

Magna International (NYSE:MGA) (TSE:MG) last released its quarterly earnings results on Thursday, May 11th. The company reported $1.53 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.34 by $0.19. The business had revenue of $9.37 billion for the quarter, compared to the consensus estimate of $9.13 billion. Magna International had a net margin of 5.76% and a return on equity of 20.58%. The business’s revenue was up 5.3% on a year-over-year basis. During the same period in the previous year, the firm earned $1.22 EPS. On average, equities research analysts forecast that Magna International will post $5.76 EPS for the current year.

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Hedge funds have recently added to or reduced their stakes in the stock. SRS Capital Advisors Inc. increased 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 valued at $139,000 after buying an additional 456 shares during the period. IFP Advisors Inc increased its position in shares of 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 during the last quarter. Advisory Services Network LLC purchased a new position in shares of Magna International during the first quarter worth approximately $157,000. Mckinley Capital Management LLC Delaware purchased a new position in shares of Magna International during the first quarter worth approximately $173,000. Finally, Regent Investment Management LLC purchased a new position in shares of Magna International during the second quarter worth approximately $204,000. Hedge funds and other institutional investors own 61.38% of the company’s stock.

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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