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

Magna International Inc. (NYSE:MGA) (TSE:MG)’s share price gapped up prior to trading on Friday following a stronger than expected earnings report. The stock had previously closed at $57.82, but opened at $63.19. Magna International shares last traded at $68.3820, with a volume of 2,044,163 shares trading hands.

The company reported $2.18 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.81 by $0.37. Magna International had a net margin of 2.50% and a return on equity of 11.88%. The firm had revenue of $10.74 billion for the quarter, compared to analysts’ expectations of $10.54 billion. During the same quarter last year, the business posted $1.69 earnings per share. The company’s revenue for the quarter was up 2.1% compared to the same quarter last year. Magna International has set its FY 2026 guidance at 6.250-7.250 EPS.

Magna International Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, March 13th. Stockholders of record on Friday, February 27th will be issued a $0.495 dividend. This represents a $1.98 annualized dividend and a dividend yield of 2.9%. This is a positive change from Magna International’s previous quarterly dividend of $0.49. The ex-dividend date of this dividend is Friday, February 27th. Magna International’s payout ratio is presently 53.01%.

More Magna International News

Here are the key news stories impacting Magna International this week:

• Positive Sentiment: Q4 beat — Magna reported adjusted EPS of $2.18 vs. consensus ~$1.81 and revenue of $10.74B vs. ~$10.54B, driven by improved adjusted EBIT and margin expansion; the print and conference materials provide the operational detail investors cheered. MarketBeat Q4 transcript
• Positive Sentiment: Raised FY2026 guidance — Magna updated EPS guidance to $6.25–$7.25 (vs. ~5.73 consensus) and revenue guidance of $41.9B–$43.5B, signaling confidence in top-line growth and margin progression for the year. GlobeNewswire – Q4 results & 2026 outlook
• Positive Sentiment: Dividend increase — the board raised the quarterly dividend to $0.495 (a 2.1% hike), continuing a long dividend-growth track record and supporting income-focused investor demand. Ex-dividend date and payment timing were announced with the increase. Seeking Alpha – Dividend raise
• Positive Sentiment: Strong cash generation — Magna reported ~$2.0B cash from operations and ~$1.3B free cash flow in Q4 and finished the year with ~$1.6B of cash, supporting the balance sheet and buyback/dividend flexibility. GlobeNewswire – cash flow details
• Neutral Sentiment: Sector reaction — auto-parts and OEM peers rallied following Magna’s print, so some of the stock’s move reflects a broader sector re-rating on improving auto demand/earnings. Investing.com – sector reaction
• Negative Sentiment: Large non-cash impairment — the quarter included a $615M non-cash impairment that pushed GAAP diluted EPS to ~$0.00 and kept reported net margin modest; investors should separate one-time items from underlying operating performance. GlobeNewswire – impairment & GAAP EPS

Analyst Ratings Changes

A number of analysts have issued reports on the company. Wall Street Zen raised Magna International from a “buy” rating to a “strong-buy” rating in a research note on Monday, January 19th. TD Securities raised their target price on shares of Magna International from $57.00 to $58.00 and gave the company a “buy” rating in a report on Monday, November 3rd. Royal Bank Of Canada upped their price target on shares of Magna International from $47.00 to $48.00 and gave the company a “sector perform” rating in a research note on Monday, November 3rd. Canadian Imperial Bank of Commerce increased their price objective on shares of Magna International from $50.00 to $56.00 and gave the company a “neutral” rating in a research report on Monday, January 5th. Finally, Evercore boosted their target price on shares of Magna International from $47.00 to $52.00 and gave the stock an “in-line” rating in a report on Monday, November 24th. Three analysts have rated the stock with a Buy rating, fourteen have issued a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, the company currently has a consensus rating of “Hold” and an average price target of $52.80.

Hedge Funds Weigh In On Magna International

Several hedge funds have recently added to or reduced their stakes in the company. Community Bank N.A. purchased a new position in shares of Magna International during the third quarter valued at approximately $29,000. EverSource Wealth Advisors LLC boosted its holdings in Magna International by 35.7% during the 4th quarter. EverSource Wealth Advisors LLC now owns 779 shares of the company’s stock valued at $42,000 after acquiring an additional 205 shares during the period. IFC & Insurance Marketing Inc. bought a new position in Magna International in the 4th quarter valued at $49,000. Danske Bank A S bought a new position in Magna International in the 3rd quarter valued at $112,000. Finally, Farther Finance Advisors LLC increased its stake in Magna International by 98.4% in the third quarter. Farther Finance Advisors LLC now owns 2,839 shares of the company’s stock worth $134,000 after purchasing an additional 1,408 shares during the period. 67.49% of the stock is currently owned by institutional investors.

Magna International Stock Performance

The firm has a market capitalization of $19.12 billion, a P/E ratio of 18.74 and a beta of 1.50. The company has a debt-to-equity ratio of 0.38, a current ratio of 1.18 and a quick ratio of 0.83. The firm has a 50-day moving average price of $54.22 and a two-hundred day moving average price of $49.01.

Magna International Company Profile

Magna International Inc is a leading global automotive supplier specializing in the design, engineering, and manufacturing of vehicle systems, assemblies, modules, and components. Headquartered in Aurora, Ontario, the company partners with major original equipment manufacturers (OEMs) to develop technologies and solutions that enhance vehicle performance, safety, comfort, and fuel efficiency. Magna’s broad portfolio encompasses body exteriors and structures, powertrain systems, seating and interiors, roof systems, mirror systems, and advanced driver assistance systems (ADAS).

The company operates more than 350 manufacturing and assembly facilities and over 100 innovation centers across 27 countries, serving customers in North America, Europe, Asia, South America, and Africa.