Magna International (NYSE:MGA) Hits New 1-Year Low Following Weak Earnings

Magna International Inc. (NYSE:MGA) (TSE:MG)’s stock price hit a new 52-week low during trading on Friday following a weaker than expected earnings announcement. The company traded as low as $46.11 and last traded at $47.37, with a volume of 1092785 shares traded. The stock had previously closed at $48.42.

The company reported $1.08 EPS for the quarter, missing the consensus estimate of $1.26 by ($0.18). The company had revenue of $10.97 billion during the quarter, compared to analysts’ expectations of $10.97 billion. Magna International had a return on equity of 13.15% and a net margin of 2.83%. Magna International’s revenue was up 2.8% compared to the same quarter last year. During the same period in the previous year, the firm posted $1.11 EPS.

Magna International Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, May 31st. Investors of record on Friday, May 17th will be given a dividend of $0.475 per share. The ex-dividend date is Thursday, May 16th. This represents a $1.90 annualized dividend and a dividend yield of 4.07%. Magna International’s dividend payout ratio (DPR) is presently 45.02%.

Analysts Set New Price Targets

Several research firms recently issued reports on MGA. CIBC lowered their price objective on Magna International from $61.00 to $59.00 and set a “neutral” rating on the stock in a report on Friday, April 19th. TD Securities dropped their price target on Magna International from $69.00 to $63.00 and set a “buy” rating for the company in a research report on Monday, April 22nd. Barclays decreased their price objective on Magna International from $63.00 to $62.00 and set an “equal weight” rating on the stock in a report on Thursday, April 11th. Scotiabank dropped their target price on shares of Magna International from $62.00 to $59.00 and set a “sector perform” rating for the company in a report on Monday, February 12th. Finally, UBS Group raised their price target on shares of Magna International from $59.00 to $60.00 and gave the stock a “neutral” rating in a research note on Wednesday, January 17th. Eleven investment analysts have rated the stock with a hold rating and five have issued a buy rating to the company’s stock. Based on data from MarketBeat, the company has a consensus rating of “Hold” and a consensus target price of $62.50.

Institutional Trading of Magna International

Hedge funds have recently made changes to their positions in the company. Sumitomo Mitsui Trust Holdings Inc. lifted its holdings in Magna International by 18.5% in the third quarter. Sumitomo Mitsui Trust Holdings Inc. now owns 947,966 shares of the company’s stock valued at $50,921,000 after acquiring an additional 147,950 shares during the last quarter. Strengthening Families & Communities LLC raised its position in Magna International by 9.2% in the third quarter. Strengthening Families & Communities LLC now owns 35,603 shares of the company’s stock valued at $1,909,000 after purchasing an additional 2,997 shares during the period. Lorne Steinberg Wealth Management Inc. lifted its stake in shares of Magna International by 2.2% in the 3rd quarter. Lorne Steinberg Wealth Management Inc. now owns 68,712 shares of the company’s stock valued at $3,699,000 after purchasing an additional 1,449 shares during the last quarter. Janney Montgomery Scott LLC lifted its stake in shares of Magna International by 1.2% in the 3rd quarter. Janney Montgomery Scott LLC now owns 144,583 shares of the company’s stock valued at $7,751,000 after purchasing an additional 1,737 shares during the last quarter. Finally, Van ECK Associates Corp grew its holdings in shares of Magna International by 9.6% during the 3rd quarter. Van ECK Associates Corp now owns 3,576 shares of the company’s stock worth $192,000 after purchasing an additional 312 shares during the period. Hedge funds and other institutional investors own 67.49% of the company’s stock.

Magna International Stock Down 3.6 %

The business has a 50-day moving average of $52.00 and a 200-day moving average of $53.93. The company has a debt-to-equity ratio of 0.34, a quick ratio of 0.71 and a current ratio of 1.06. The stock has a market capitalization of $13.42 billion, a price-to-earnings ratio of 11.07, a P/E/G ratio of 0.49 and a beta of 1.69.

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.