Magna International (NYSE:MGA) Trading Down 3.3% After Earnings Miss

Magna International Inc. (NYSE:MGA) (TSE:MG) was down 3.3% during mid-day trading on Friday following a weaker than expected earnings announcement. The company traded as low as $33.43 and last traded at $33.86. Approximately 631,440 shares traded hands during trading, a decline of 64% from the average daily volume of 1,774,472 shares. The stock had previously closed at $35.01.

The company reported $0.78 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.90 by ($0.12). The firm had revenue of $9.68 billion during the quarter, compared to analyst estimates of $9.66 billion. Magna International had a net margin of 2.36% and a return on equity of 12.78%. The firm’s revenue for the quarter was down 8.2% compared to the same quarter last year. During the same period last year, the company earned $1.08 earnings per share.

Magna International Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Friday, March 14th. Investors of record on Friday, February 28th were paid a dividend of $0.485 per share. The ex-dividend date of this dividend was Friday, February 28th. This represents a $1.94 dividend on an annualized basis and a yield of 5.87%. This is a boost from Magna International’s previous quarterly dividend of $0.48. Magna International’s dividend payout ratio is currently 55.27%.

Wall Street Analyst Weigh In

A number of brokerages have recently commented on MGA. Bank of America cut shares of Magna International from a “buy” rating to a “neutral” rating and reduced their target price for the company from $52.00 to $48.00 in a report on Tuesday, March 4th. Veritas upgraded Magna International to a “hold” rating in a research note on Thursday, April 24th. Morgan Stanley cut their price target on Magna International from $43.00 to $40.00 and set an “equal weight” rating for the company in a research note on Monday, March 3rd. Barclays lowered their price objective on shares of Magna International from $47.00 to $37.00 and set an “equal weight” rating on the stock in a research report on Tuesday, April 15th. Finally, Raymond James cut their price objective on shares of Magna International from $53.00 to $50.00 and set a “market perform” rating for the company in a research report on Tuesday, February 18th. One equities research analyst has rated the stock with a sell rating, fifteen have given a hold rating and five have assigned a buy rating to the stock. Based on data from MarketBeat.com, the company presently has an average rating of “Hold” and an average target price of $43.74.

Hedge Funds Weigh In On Magna International

Hedge funds and other institutional investors have recently bought and sold shares of the company. 1620 Investment Advisors Inc. increased its position in shares of Magna International by 3.6% in the fourth quarter. 1620 Investment Advisors Inc. now owns 7,856 shares of the company’s stock valued at $328,000 after buying an additional 276 shares in the last quarter. Thurston Springer Miller Herd & Titak Inc. raised its position in Magna International by 37.2% during the fourth quarter. Thurston Springer Miller Herd & Titak Inc. now owns 1,111 shares of the company’s stock worth $46,000 after acquiring an additional 301 shares during the last quarter. Lindbrook Capital LLC lifted its holdings in shares of Magna International by 43.1% in the fourth quarter. Lindbrook Capital LLC now owns 1,036 shares of the company’s stock valued at $43,000 after purchasing an additional 312 shares in the last quarter. Cromwell Holdings LLC grew its position in shares of Magna International by 131.6% in the first quarter. Cromwell Holdings LLC now owns 820 shares of the company’s stock valued at $28,000 after purchasing an additional 466 shares during the last quarter. Finally, Avior Wealth Management LLC increased its stake in shares of Magna International by 2,400.0% during the 4th quarter. Avior Wealth Management LLC now owns 625 shares of the company’s stock worth $26,000 after purchasing an additional 600 shares in the last quarter. 67.49% of the stock is owned by institutional investors and hedge funds.

Magna International Price Performance

The company has a debt-to-equity ratio of 0.35, a quick ratio of 0.77 and a current ratio of 1.08. The company has a 50-day moving average of $34.69 and a 200-day moving average of $39.36. The stock has a market capitalization of $9.31 billion, a price-to-earnings ratio of 9.42, a P/E/G ratio of 0.63 and a beta of 1.56.

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.