Magna International (NYSE:MGA) Reaches New 1-Year Low Following Analyst Downgrade

Shares of Magna International Inc. (NYSE:MGA) (TSE:MG) hit a new 52-week low on Wednesday after Wells Fargo & Company lowered their price target on the stock from $49.00 to $46.00. Wells Fargo & Company currently has an equal weight rating on the stock. Magna International traded as low as $40.83 and last traded at $40.97, with a volume of 201266 shares changing hands. The stock had previously closed at $41.69.

A number of other research firms have also recently commented on MGA. Morgan Stanley decreased their target price on shares of Magna International from $65.00 to $60.00 and set an “overweight” rating on the stock in a research report on Friday, May 10th. CIBC decreased their target price on shares of Magna International from $59.00 to $54.00 and set a “neutral” rating on the stock in a research report on Monday, May 6th. The Goldman Sachs Group decreased their target price on shares of Magna International from $56.00 to $48.00 and set a “neutral” rating on the stock in a research report on Monday, May 6th. Barclays reduced their price target on shares of Magna International from $62.00 to $60.00 and set an “equal weight” rating on the stock in a research report on Monday, May 6th. Finally, StockNews.com cut shares of Magna International from a “buy” rating to a “hold” rating in a research report on Friday, May 10th. Twelve analysts have rated the stock with a hold rating and five have given a buy rating to the company. According to data from MarketBeat, the stock presently has an average rating of “Hold” and a consensus price target of $59.81.

Institutional Trading of Magna International

A number of large investors have recently made changes to their positions in MGA. Sunbelt Securities Inc. increased its stake in Magna International by 2,179.2% in the first quarter. Sunbelt Securities Inc. now owns 547 shares of the company’s stock valued at $30,000 after purchasing an additional 523 shares during the last quarter. LRI Investments LLC purchased a new position in Magna International in the first quarter valued at approximately $36,000. Massmutual Trust Co. FSB ADV increased its stake in Magna International by 332.9% in the fourth quarter. Massmutual Trust Co. FSB ADV now owns 684 shares of the company’s stock valued at $40,000 after purchasing an additional 526 shares during the last quarter. Dixon Mitchell Investment Counsel Inc. purchased a new position in Magna International in the first quarter valued at approximately $49,000. Finally, S.A. Mason LLC increased its stake in Magna International by 24.4% in the fourth quarter. S.A. Mason LLC now owns 1,166 shares of the company’s stock valued at $69,000 after purchasing an additional 229 shares during the last quarter. 67.49% of the stock is currently owned by hedge funds and other institutional investors.

Magna International Price Performance

The company has a market capitalization of $11.94 billion, a PE ratio of 11.81, a price-to-earnings-growth ratio of 0.53 and a beta of 1.62. The company has a debt-to-equity ratio of 0.38, a current ratio of 1.09 and a quick ratio of 0.76. The company’s 50 day simple moving average is $45.66 and its 200 day simple moving average is $51.79.

Magna International (NYSE:MGA) (TSE:MG) last announced its earnings results on Friday, May 3rd. The company reported $1.08 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $1.26 by ($0.18). The business had revenue of $10.97 billion for the quarter, compared to analysts’ expectations of $10.97 billion. Magna International had a return on equity of 12.96% and a net margin of 2.35%. The business’s revenue was up 2.8% on a year-over-year basis. During the same quarter last year, the business posted $1.11 earnings per share. As a group, sell-side analysts predict that Magna International Inc. will post 5.83 earnings per share for the current year.

Magna International Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Friday, May 31st. Stockholders of record on Friday, May 17th were given a dividend of $0.475 per share. The ex-dividend date was Thursday, May 16th. This represents a $1.90 dividend on an annualized basis and a dividend yield of 4.57%. Magna International’s dividend payout ratio (DPR) is presently 53.98%.

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.