Magna International (NYSE:MGA) Sets New 52-Week Low on Disappointing Earnings

Magna International Inc. (NYSE:MGA) (TSE:MG)’s share price reached a new 52-week low during trading on Friday after the company announced weaker than expected quarterly earnings. The company traded as low as $46.11 and last traded at $47.37, with a volume of 1092785 shares. The stock had previously closed at $48.42.

The company reported $1.08 earnings per share 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 analyst estimates of $10.97 billion. Magna International had a return on equity of 13.15% and a net margin of 2.83%. Magna International’s quarterly revenue was up 2.8% compared to the same quarter last year. During the same period last year, the firm earned $1.11 EPS.

Magna International Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, March 8th. Stockholders of record on Friday, February 23rd were given a $0.475 dividend. This is an increase from Magna International’s previous quarterly dividend of $0.46. The ex-dividend date of this dividend was Thursday, February 22nd. This represents a $1.90 annualized dividend and a dividend yield of 4.07%. Magna International’s dividend payout ratio is presently 45.02%.

Analyst Upgrades and Downgrades

Several equities analysts have recently commented on the company. Royal Bank of Canada decreased their target price on Magna International from $61.00 to $60.00 and set a “sector perform” rating on the stock in a research report on Monday, February 12th. UBS Group upped their target price on Magna International from $59.00 to $60.00 and gave the company a “neutral” rating in a research report on Wednesday, January 17th. Citigroup decreased their target price on Magna International from $60.00 to $57.00 and set a “neutral” rating on the stock in a research report on Monday, February 12th. StockNews.com raised Magna International from a “hold” rating to a “buy” rating in a research report on Thursday. Finally, Evercore downgraded Magna International from an “outperform” rating to an “in-line” rating and decreased their target price for the company from $75.00 to $62.00 in a research report on Monday, April 15th. Eleven investment analysts have rated the stock with a hold rating and five have assigned a buy rating to the company. Based on data from MarketBeat.com, the stock presently has an average rating of “Hold” and a consensus target price of $62.50.

Institutional Investors Weigh In On Magna International

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Sunbelt Securities Inc. lifted its stake in Magna International by 2,179.2% during the first quarter. Sunbelt Securities Inc. now owns 547 shares of the company’s stock worth $30,000 after purchasing an additional 523 shares during the last quarter. Massmutual Trust Co. FSB ADV lifted its stake in shares of Magna International by 332.9% in the 4th quarter. Massmutual Trust Co. FSB ADV now owns 684 shares of the company’s stock valued at $40,000 after acquiring an additional 526 shares during the last quarter. Dixon Mitchell Investment Counsel Inc. bought a new position in shares of Magna International in the 1st quarter valued at $49,000. S.A. Mason LLC lifted its stake in shares of Magna International by 24.4% in the 4th quarter. S.A. Mason LLC now owns 1,166 shares of the company’s stock valued at $69,000 after acquiring an additional 229 shares during the last quarter. Finally, Parallel Advisors LLC lifted its stake in shares of Magna International by 50.8% in the 4th quarter. Parallel Advisors LLC now owns 2,611 shares of the company’s stock valued at $154,000 after acquiring an additional 879 shares during the last quarter. 67.49% of the stock is currently owned by institutional investors.

Magna International Stock Down 3.5 %

The company has a market capitalization of $13.42 billion, a P/E ratio of 11.07, a PEG ratio of 0.48 and a beta of 1.69. The company has a current ratio of 1.06, a quick ratio of 0.71 and a debt-to-equity ratio of 0.34. The stock has a 50 day moving average price of $52.00 and a 200 day moving average price of $53.92.

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.