Magna International (NYSE:MGA) Sets New 1-Year High – Here’s Why

Magna International Inc. (NYSE:MGA) (TSE:MG)’s stock price hit a new 52-week high during mid-day trading on Wednesday . The company traded as high as $51.41 and last traded at $51.0870, with a volume of 1151675 shares traded. The stock had previously closed at $49.29.

Wall Street Analyst Weigh In

Several research analysts have recently commented on MGA shares. CIBC raised their target price on shares of Magna International from $47.00 to $50.00 and gave the stock a “neutral” rating in a report on Monday, November 3rd. Wells Fargo & Company lowered their price objective on Magna International from $51.00 to $50.00 and set an “equal weight” rating on the stock in a research note on Tuesday. Wall Street Zen upgraded Magna International from a “buy” rating to a “strong-buy” rating in a research report on Sunday, November 9th. JPMorgan Chase & Co. increased their target price on Magna International from $53.00 to $57.00 and gave the stock an “overweight” rating in a report on Monday, November 3rd. Finally, Scotiabank raised their price target on Magna International from $47.00 to $52.00 and gave the stock a “sector perform” rating in a research report on Monday, November 3rd. Three investment analysts have rated the stock with a Buy rating, fourteen have given a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the company has an average rating of “Hold” and an average target price of $50.33.

Magna International Stock Up 3.6%

The firm has a market capitalization of $14.40 billion, a price-to-earnings ratio of 13.96 and a beta of 1.53. The company has a debt-to-equity ratio of 0.38, a current ratio of 1.18 and a quick ratio of 0.83. The stock has a fifty day moving average of $47.54 and a two-hundred day moving average of $44.03.

Magna International (NYSE:MGA) (TSE:MG) last announced its earnings results on Friday, October 31st. The company reported $1.33 EPS for the quarter, topping the consensus estimate of $1.24 by $0.09. The firm had revenue of $10.50 billion for the quarter, compared to the consensus estimate of $10.03 billion. Magna International had a return on equity of 11.88% and a net margin of 2.50%.The business’s quarterly revenue was up 1.8% compared to the same quarter last year. During the same period in the previous year, the business earned $1.28 EPS. Sell-side analysts anticipate that Magna International Inc. will post 5.87 earnings per share for the current year.

Magna International Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Friday, November 28th. Shareholders of record on Friday, November 14th were given a dividend of $0.485 per share. This represents a $1.94 dividend on an annualized basis and a yield of 3.8%. The ex-dividend date of this dividend was Friday, November 14th. Magna International’s dividend payout ratio is currently 53.01%.

Institutional Investors Weigh In On Magna International

A number of institutional investors have recently modified their holdings of the company. ARGA Investment Management LP grew its stake in Magna International by 33.2% in the third quarter. ARGA Investment Management LP now owns 4,148,133 shares of the company’s stock valued at $196,557,000 after acquiring an additional 1,033,747 shares during the period. Hillsdale Investment Management Inc. acquired a new stake in Magna International in the 3rd quarter valued at $33,593,000. Geode Capital Management LLC grew its position in Magna International by 20.2% in the 2nd quarter. Geode Capital Management LLC now owns 2,015,407 shares of the company’s stock valued at $77,332,000 after purchasing an additional 338,470 shares during the period. AGF Management Ltd. bought a new stake in Magna International during the 3rd quarter valued at $14,191,000. Finally, Caisse DE Depot ET Placement DU Quebec acquired a new position in Magna International during the first quarter worth $8,416,000. 67.49% of the stock is owned by institutional investors.

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.