Magna International (NYSE:MGA) Cut to Sector Perform at Royal Bank of Canada

Royal Bank of Canada cut shares of Magna International (NYSE:MGA) (TSE:MG) from an outperform rating to a sector perform rating in a research report sent to investors on Friday morning, Marketbeat reports. Royal Bank of Canada currently has $32.00 price objective on the stock, down from their previous price objective of $51.00.

A number of other brokerages have also issued reports on MGA. Scotiabank lowered their target price on shares of Magna International from $49.00 to $45.00 and set a “sector perform” rating on the stock in a research report on Tuesday, February 18th. Wells Fargo & Company lowered their price objective on shares of Magna International from $46.00 to $44.00 and set an “equal weight” rating on the stock in a research report on Monday, December 16th. CIBC dropped their price objective on shares of Magna International from $44.00 to $36.50 and set a “neutral” rating on the stock in a research note on Wednesday, March 5th. Bank of America downgraded shares of Magna International from a “buy” rating to a “neutral” rating and decreased their target price for the stock from $52.00 to $48.00 in a research note on Tuesday, March 4th. Finally, TD Securities cut their price target on Magna International from $50.00 to $47.00 and set a “buy” rating for the company in a research note on Tuesday, February 18th. One investment analyst has rated the stock with a sell rating, fourteen have given a hold rating and five have assigned a buy rating to the stock. According to MarketBeat, Magna International has an average rating of “Hold” and an average price target of $44.91.

Magna International Stock Performance

Shares of Magna International stock opened at $32.21 on Friday. The firm has a market capitalization of $9.07 billion, a P/E ratio of 9.18, a P/E/G ratio of 0.63 and a beta of 1.56. The company has a quick ratio of 0.77, a current ratio of 1.08 and a debt-to-equity ratio of 0.35. Magna International has a 52 week low of $30.39 and a 52 week high of $50.36. The firm’s 50 day moving average is $36.25 and its two-hundred day moving average is $40.17.

Magna International (NYSE:MGA) (TSE:MG) last announced its quarterly earnings results on Friday, February 14th. The company reported $1.69 EPS for the quarter, topping the consensus estimate of $1.46 by $0.23. Magna International had a net margin of 2.36% and a return on equity of 12.78%. The firm had revenue of $10.63 billion for the quarter, compared to analyst estimates of $10.32 billion. During the same period last year, the business earned $1.33 EPS. Magna International’s revenue for the quarter was up 1.7% compared to the same quarter last year. Research analysts forecast that Magna International will post 5.87 EPS for the current fiscal year.

Magna International Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, March 14th. Shareholders of record on Friday, February 28th were given a dividend of $0.485 per share. This represents a $1.94 dividend on an annualized basis and a yield of 6.02%. This is an increase from Magna International’s previous quarterly dividend of $0.48. The ex-dividend date was Friday, February 28th. Magna International’s payout ratio is presently 55.27%.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in MGA. Avior Wealth Management LLC grew its stake in Magna International by 2,400.0% in the 4th quarter. Avior Wealth Management LLC now owns 625 shares of the company’s stock valued at $26,000 after acquiring an additional 600 shares during the last quarter. LRI Investments LLC lifted its holdings in shares of Magna International by 2,126.5% in the fourth quarter. LRI Investments LLC now owns 757 shares of the company’s stock valued at $32,000 after purchasing an additional 723 shares in the last quarter. Versant Capital Management Inc acquired a new stake in shares of Magna International in the first quarter valued at approximately $27,000. Millstone Evans Group LLC acquired a new stake in shares of Magna International in the fourth quarter valued at approximately $33,000. Finally, Lindbrook Capital LLC increased its stake in shares of Magna International by 43.1% during the 4th quarter. Lindbrook Capital LLC now owns 1,036 shares of the company’s stock worth $43,000 after purchasing an additional 312 shares in the last quarter. Hedge funds and other institutional investors 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.