Magna International (NYSE:MGA) Shares Gap Down – Time to Sell?

Magna International Inc. (NYSE:MGA) (TSE:MG) gapped down before the market opened on Friday . The stock had previously closed at $39.67, but opened at $37.49. Magna International shares last traded at $38.08, with a volume of 1,077,460 shares.

Analyst Upgrades and Downgrades

Several research firms have recently commented on MGA. Wells Fargo & Company decreased their price objective on Magna International from $46.00 to $44.00 and set an “equal weight” rating on the stock in a report on Monday, December 16th. Wolfe Research raised Magna International from an “underperform” rating to a “peer perform” rating in a research note on Thursday, December 5th. Scotiabank cut their price objective on Magna International from $52.00 to $49.00 and set a “sector perform” rating for the company in a research report on Monday, January 27th. Royal Bank of Canada raised shares of Magna International from a “sector perform” rating to an “outperform” rating and upped their target price for the company from $41.00 to $52.00 in a research report on Friday, January 24th. Finally, UBS Group boosted their price target on shares of Magna International from $44.00 to $45.00 and gave the company a “neutral” rating in a research note on Monday, November 4th. One analyst has rated the stock with a sell rating, twelve have given a hold rating and seven have given a buy rating to the stock. According to data from MarketBeat, the company has an average rating of “Hold” and a consensus price target of $50.24.

Magna International Price Performance

The company has a 50 day moving average of $41.14 and a 200 day moving average of $41.67. The company has a debt-to-equity ratio of 0.39, a quick ratio of 0.77 and a current ratio of 1.14. The stock has a market capitalization of $10.72 billion, a price-to-earnings ratio of 10.13, a PEG ratio of 0.60 and a beta of 1.61.

Magna International (NYSE:MGA) (TSE:MG) last released its earnings results on Friday, February 14th. The company reported $1.69 earnings per share for the quarter, topping analysts’ consensus estimates of $1.46 by $0.23. The firm had revenue of $10.63 billion for the quarter, compared to analyst estimates of $10.32 billion. Magna International had a net margin of 2.52% and a return on equity of 11.88%. The business’s quarterly revenue was up 1.7% compared to the same quarter last year. During the same period in the prior year, the firm earned $1.33 earnings per share. As a group, equities research analysts anticipate that Magna International Inc. will post 5.23 EPS for the current year.

Magna International Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, March 14th. Stockholders of record on Friday, February 28th will be issued a $0.485 dividend. This represents a $1.94 dividend on an annualized basis and a dividend yield of 5.12%. This is a positive change from Magna International’s previous quarterly dividend of $0.48. The ex-dividend date is Friday, February 28th. Magna International’s dividend payout ratio (DPR) is presently 55.27%.

Hedge Funds Weigh In On Magna International

Institutional investors and hedge funds have recently modified their holdings of the company. ARGA Investment Management LP lifted its holdings in Magna International by 158.1% during the 4th quarter. ARGA Investment Management LP now owns 2,561,491 shares of the company’s stock worth $107,049,000 after buying an additional 1,568,953 shares during the last quarter. Russell Investments Group Ltd. raised its position in shares of Magna International by 52.3% during the 4th quarter. Russell Investments Group Ltd. now owns 2,395,373 shares of the company’s stock worth $100,087,000 after acquiring an additional 822,375 shares in the last quarter. Toronto Dominion Bank lifted its stake in Magna International by 1.2% during the third quarter. Toronto Dominion Bank now owns 1,627,927 shares of the company’s stock worth $66,810,000 after purchasing an additional 18,704 shares during the last quarter. Geode Capital Management LLC boosted its holdings in Magna International by 32.2% in the fourth quarter. Geode Capital Management LLC now owns 1,523,196 shares of the company’s stock valued at $63,280,000 after purchasing an additional 371,437 shares in the last quarter. Finally, Mufg Securities Canada LTD. boosted its holdings in shares of Magna International by 72.1% in the 4th quarter. Mufg Securities Canada LTD. now owns 412,454 shares of the company’s stock valued at $17,228,000 after buying an additional 172,754 shares in the last quarter. Institutional investors and hedge funds own 67.49% of the company’s stock.

Magna International Company Profile

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.