Magna International (NYSE:MGA) Shares Gap Up After Dividend Announcement

Magna International Inc. (NYSE:MGA) (TSE:MG) gapped up prior to trading on Friday after the company announced a dividend. The stock had previously closed at $39.47, but opened at $42.10. Magna International shares last traded at $42.90, with a volume of 674,297 shares trading hands.

The newly announced dividend which will be paid on Friday, November 29th. Stockholders of record on Friday, November 15th will be given a $0.475 dividend. This represents a $1.90 annualized dividend and a dividend yield of 4.53%. The ex-dividend date is Friday, November 15th. Magna International’s payout ratio is presently 55.39%.

Wall Street Analyst Weigh In

MGA has been the subject of several research analyst reports. Wolfe Research reaffirmed an “underperform” rating on shares of Magna International in a report on Thursday, September 5th. The Goldman Sachs Group decreased their target price on Magna International from $44.00 to $41.00 and set a “neutral” rating on the stock in a research report on Tuesday, October 1st. Evercore ISI dropped their price target on Magna International from $60.00 to $50.00 and set an “in-line” rating for the company in a report on Monday, July 15th. Morgan Stanley downgraded Magna International from an “overweight” rating to an “equal weight” rating and reduced their price target for the company from $55.00 to $43.00 in a research note on Wednesday, September 25th. Finally, UBS Group lowered their price objective on Magna International from $51.00 to $46.00 and set a “neutral” rating on the stock in a research report on Wednesday, July 10th. One research analyst has rated the stock with a sell rating, fourteen have assigned a hold rating and five have assigned a buy rating to the stock. According to MarketBeat, the company has a consensus rating of “Hold” and a consensus target price of $49.65.

Magna International Trading Up 6.3 %

The firm’s 50-day simple moving average is $41.34 and its 200 day simple moving average is $43.18. The company has a debt-to-equity ratio of 0.40, a current ratio of 1.12 and a quick ratio of 0.77. The firm has a market capitalization of $12.06 billion, a price-to-earnings ratio of 12.24, a P/E/G ratio of 0.63 and a beta of 1.59.

Magna International (NYSE:MGA) (TSE:MG) last posted its quarterly earnings results on Friday, November 1st. The company reported $1.28 EPS for the quarter, missing analysts’ consensus estimates of $1.48 by ($0.20). Magna International had a return on equity of 12.53% and a net margin of 2.29%. The business had revenue of $10.28 billion for the quarter, compared to analyst estimates of $10.34 billion. During the same period last year, the firm posted $1.46 EPS. Magna International’s quarterly revenue was down 3.8% on a year-over-year basis. Equities analysts expect that Magna International Inc. will post 5.4 earnings per share for the current year.

Institutional Investors Weigh In On Magna International

Hedge funds and other institutional investors have recently made changes to their positions in the stock. JARISLOWSKY FRASER Ltd boosted its holdings in shares of Magna International by 5.9% during the 2nd quarter. JARISLOWSKY FRASER Ltd now owns 7,148,236 shares of the company’s stock valued at $299,543,000 after acquiring an additional 395,745 shares in the last quarter. Toronto Dominion Bank boosted its stake in shares of Magna International by 1.9% during the second quarter. Toronto Dominion Bank now owns 1,609,223 shares of the company’s stock valued at $67,426,000 after purchasing an additional 30,361 shares in the last quarter. Russell Investments Group Ltd. grew its holdings in shares of Magna International by 35.5% during the first quarter. Russell Investments Group Ltd. now owns 1,102,786 shares of the company’s stock worth $60,118,000 after purchasing an additional 289,105 shares during the last quarter. Janney Montgomery Scott LLC grew its holdings in shares of Magna International by 11.4% during the third quarter. Janney Montgomery Scott LLC now owns 210,632 shares of the company’s stock worth $8,644,000 after purchasing an additional 21,532 shares during the last quarter. Finally, Millennium Management LLC increased its stake in shares of Magna International by 135.5% in the second quarter. Millennium Management LLC now owns 162,739 shares of the company’s stock valued at $6,818,000 after buying an additional 93,637 shares during the period. 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.