Magna International (NYSE:MGA) Shares Gap Up After Earnings Beat

Magna International Inc. (NYSE:MGA) (TSE:MG) shares gapped up before the market opened on Friday following a better than expected earnings announcement. The stock had previously closed at $49.04, but opened at $53.77. Magna International shares last traded at $54.67, with a volume of 510,305 shares.

The company reported $1.46 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.34 by $0.12. The business had revenue of $10.69 billion for the quarter, compared to analyst estimates of $10.43 billion. Magna International had a return on equity of 11.63% and a net margin of 2.30%. Magna International’s revenue was up 15.3% on a year-over-year basis. During the same quarter in the prior year, the company posted $1.07 earnings per share.

Wall Street Analysts Forecast Growth

A number of brokerages have weighed in on MGA. Raymond James boosted their price target on Magna International from $56.00 to $60.00 and gave the stock a “market perform” rating in a research report on Tuesday, August 8th. TD Securities boosted their price target on Magna International from $64.00 to $74.00 and gave the stock a “buy” rating in a research report on Tuesday, August 8th. Evercore boosted their price target on Magna International from $70.00 to $75.00 and gave the stock an “outperform” rating in a research report on Tuesday, October 17th. Wells Fargo & Company decreased their target price on Magna International from $66.00 to $59.00 and set an “equal weight” rating on the stock in a research report on Tuesday, October 3rd. Finally, TheStreet raised Magna International from a “c” rating to a “b” rating in a research report on Friday, August 11th. Eight equities research analysts have rated the stock with a hold rating and eight have assigned a buy rating to the company’s stock. Based on data from MarketBeat, Magna International has a consensus rating of “Moderate Buy” and a consensus target price of $66.47.

Institutional Investors Weigh In On Magna International

A number of large investors have recently added to or reduced their stakes in the stock. Pzena Investment Management LLC boosted its holdings in shares of Magna International by 36.3% in the 2nd quarter. Pzena Investment Management LLC now owns 6,201,580 shares of the company’s stock valued at $350,017,000 after purchasing an additional 1,653,111 shares in the last quarter. Sumitomo Mitsui Trust Holdings Inc. boosted its holdings in shares of Magna International by 18.5% in the 3rd quarter. Sumitomo Mitsui Trust Holdings Inc. now owns 947,966 shares of the company’s stock valued at $50,921,000 after purchasing an additional 147,950 shares in the last quarter. Russell Investments Group Ltd. boosted its holdings in shares of Magna International by 13.6% in the 2nd quarter. Russell Investments Group Ltd. now owns 648,874 shares of the company’s stock valued at $36,621,000 after purchasing an additional 77,520 shares in the last quarter. QV Investors Inc. boosted its holdings in shares of Magna International by 14.4% in the 1st quarter. QV Investors Inc. now owns 561,975 shares of the company’s stock valued at $30,060,000 after purchasing an additional 70,613 shares in the last quarter. Finally, AGF Management Ltd. boosted its holdings in shares of Magna International by 60.2% in the 1st quarter. AGF Management Ltd. now owns 186,805 shares of the company’s stock valued at $10,006,000 after purchasing an additional 70,234 shares in the last quarter. Institutional investors and hedge funds own 62.21% of the company’s stock.

Magna International Stock Performance

The stock has a fifty day simple moving average of $53.94 and a two-hundred day simple moving average of $55.12. The stock has a market cap of $15.32 billion, a price-to-earnings ratio of 16.52, a P/E/G ratio of 0.46 and a beta of 1.69. The company has a debt-to-equity ratio of 0.36, a quick ratio of 0.77 and a current ratio of 1.12.

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.