Magna International (NYSE:MGA) Shares Down 3.3% Following Weak Earnings

Magna International Inc. (NYSE:MGA) (TSE:MG)’s share price traded down 3.3% during mid-day trading on Friday following a dissappointing earnings announcement. The company traded as low as $33.43 and last traded at $33.86. 631,440 shares changed hands during mid-day trading, a decline of 64% from the average session volume of 1,774,472 shares. The stock had previously closed at $35.01.

The company reported $0.78 EPS for the quarter, missing analysts’ consensus estimates of $0.90 by ($0.12). The company had revenue of $9.68 billion for the quarter, compared to the consensus estimate of $9.66 billion. Magna International had a return on equity of 12.78% and a net margin of 2.36%. The firm’s quarterly revenue was down 8.2% compared to the same quarter last year. During the same quarter last year, the firm posted $1.08 earnings per share.

Magna International Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Friday, March 14th. Stockholders of record on Friday, February 28th were given a dividend of $0.485 per share. The ex-dividend date of this dividend was Friday, February 28th. This is a boost from Magna International’s previous quarterly dividend of $0.48. This represents a $1.94 annualized dividend and a dividend yield of 5.87%. Magna International’s dividend payout ratio (DPR) is 55.27%.

Wall Street Analysts Forecast Growth

MGA has been the subject of several research reports. The Goldman Sachs Group decreased their target price on Magna International from $38.00 to $31.00 and set a “sell” rating for the company in a research note on Thursday, April 10th. CIBC lowered 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. TD Securities dropped their target price on shares of Magna International from $47.00 to $44.00 and set a “buy” rating on the stock in a report on Monday, April 28th. Barclays reduced their target price on shares of Magna International from $47.00 to $37.00 and set an “equal weight” rating for the company in a report on Tuesday, April 15th. Finally, Bank of America cut Magna International from a “buy” rating to a “neutral” rating and dropped their price target for the company from $52.00 to $48.00 in a report on Tuesday, March 4th. One investment analyst has rated the stock with a sell rating, fifteen have issued a hold rating and five have given a buy rating to the company’s stock. Based on data from MarketBeat.com, Magna International has an average rating of “Hold” and a consensus price target of $43.74.

Institutional Investors Weigh In On Magna International

Several large investors have recently made changes to their positions in MGA. Avior Wealth Management LLC boosted its holdings in Magna International by 2,400.0% in the fourth quarter. Avior Wealth Management LLC now owns 625 shares of the company’s stock worth $26,000 after purchasing an additional 600 shares in the last quarter. Versant Capital Management Inc acquired a new position in Magna International during the first quarter valued at approximately $27,000. Cromwell Holdings LLC boosted its holdings in shares of Magna International by 131.6% during the 1st quarter. Cromwell Holdings LLC now owns 820 shares of the company’s stock worth $28,000 after buying an additional 466 shares during the period. LRI Investments LLC grew its stake in Magna International by 2,126.5% in the 4th quarter. LRI Investments LLC now owns 757 shares of the company’s stock valued at $32,000 after buying an additional 723 shares during the last quarter. Finally, Millstone Evans Group LLC acquired a new position in Magna International during the 4th quarter worth $33,000. Institutional investors own 67.49% of the company’s stock.

Magna International Stock Down 5.6 %

The company has a debt-to-equity ratio of 0.35, a current ratio of 1.08 and a quick ratio of 0.77. The business has a 50 day moving average price of $34.69 and a 200 day moving average price of $39.38. The firm has a market capitalization of $9.31 billion, a P/E ratio of 9.42, a price-to-earnings-growth ratio of 0.63 and a beta of 1.56.

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.