Scotiabank Predicts Lower Earnings for Magna International

Magna International Inc. (NYSE:MGA) (TSE:MG) – Analysts at Scotiabank reduced their FY2026 earnings estimates for Magna International in a research note issued to investors on Thursday, July 23rd. Scotiabank analyst J. Goldman now forecasts that the company will post earnings of $6.63 per share for the year, down from their previous estimate of $6.83. Scotiabank currently has a “Sector Outperform” rating and a $74.00 target price on the stock. The consensus estimate for Magna International’s current full-year earnings is $6.82 per share. Scotiabank also issued estimates for Magna International’s FY2027 earnings at $7.46 EPS.

Several other research analysts have also recently issued reports on MGA. Barclays reduced their target price on shares of Magna International from $67.00 to $66.00 and set an “equal weight” rating for the company in a report on Monday, March 30th. Wells Fargo & Company cut their price target on Magna International from $69.00 to $59.00 and set an “equal weight” rating on the stock in a research report on Tuesday, March 31st. UBS Group lifted their price objective on Magna International from $62.00 to $64.00 and gave the company a “neutral” rating in a research note on Thursday, July 9th. TD boosted their price objective on Magna International from $75.00 to $76.00 and gave the company a “buy” rating in a report on Monday, May 4th. Finally, Royal Bank Of Canada upped their target price on Magna International to $57.00 and gave the stock a “sector perform” rating in a research note on Monday, July 13th. One investment analyst has rated the stock with a Strong Buy rating, eight have issued a Buy rating, ten have assigned a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the company presently has an average rating of “Hold” and a consensus target price of $65.73.

Magna International Price Performance

MGA opened at $65.63 on Friday. The business’s fifty day simple moving average is $65.10 and its 200-day simple moving average is $60.58. The company has a market capitalization of $17.55 billion, a price-to-earnings ratio of 27.46, a PEG ratio of 0.90 and a beta of 1.44. The company has a current ratio of 1.22, a quick ratio of 0.88 and a debt-to-equity ratio of 0.38. Magna International has a 12-month low of $40.51 and a 12-month high of $69.94.

Magna International (NYSE:MGA) (TSE:MG) last announced its quarterly earnings data on Friday, May 1st. The company reported $1.38 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.01 by $0.37. The company had revenue of $10.13 billion for the quarter, compared to analysts’ expectations of $10.14 billion. Magna International had a return on equity of 14.01% and a net margin of 1.60%.Magna International’s revenue was up 3.1% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $0.78 earnings per share. Magna International has set its FY 2026 guidance at 6.250-7.250 EPS.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of the company. Geode Capital Management LLC grew its position in shares of Magna International by 6.8% during the 4th quarter. Geode Capital Management LLC now owns 2,426,843 shares of the company’s stock valued at $128,774,000 after acquiring an additional 154,710 shares during the period. Russell Investments Group Ltd. raised its holdings in Magna International by 7.8% in the 4th quarter. Russell Investments Group Ltd. now owns 2,090,887 shares of the company’s stock worth $111,549,000 after purchasing an additional 151,819 shares during the period. Hillsdale Investment Management Inc. raised its holdings in Magna International by 14.8% in the 1st quarter. Hillsdale Investment Management Inc. now owns 832,575 shares of the company’s stock worth $46,486,000 after purchasing an additional 107,150 shares during the period. Public Employees Retirement System of Ohio boosted its position in Magna International by 196.9% during the third quarter. Public Employees Retirement System of Ohio now owns 139,659 shares of the company’s stock worth $6,620,000 after purchasing an additional 92,613 shares in the last quarter. Finally, Mediolanum International Funds Ltd boosted its position in Magna International by 83.1% during the first quarter. Mediolanum International Funds Ltd now owns 134,736 shares of the company’s stock worth $7,210,000 after purchasing an additional 61,151 shares in the last quarter. Institutional investors and hedge funds own 67.49% of the company’s stock.

Magna International Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Friday, May 29th. Investors of record on Friday, May 15th were given a dividend of $0.495 per share. This represents a $1.98 annualized dividend and a yield of 3.0%. The ex-dividend date was Friday, May 15th. Magna International’s dividend payout ratio (DPR) is currently 82.85%.

Magna International Company Profile

Magna International Inc is a leading global automotive supplier specializing in the design, engineering, and manufacturing of vehicle systems, assemblies, modules, and components. Headquartered in Aurora, Ontario, the company partners with major original equipment manufacturers (OEMs) to develop technologies and solutions that enhance vehicle performance, safety, comfort, and fuel efficiency. Magna’s broad portfolio encompasses body exteriors and structures, powertrain systems, seating and interiors, roof systems, mirror systems, and advanced driver assistance systems (ADAS).

The company operates more than 350 manufacturing and assembly facilities and over 100 innovation centers across 27 countries, serving customers in North America, Europe, Asia, South America, and Africa.