Magna International (NYSE:MGA) Shares Gap Up on Better-Than-Expected Earnings

Posted by Defense World Staff on May 6th, 2023

Magna International Inc. (NYSE:MGA – Get Rating) (TSE:MG)’s stock price gapped up prior to trading on Friday after the company announced better than expected quarterly earnings. The stock had previously closed at $50.22, but opened at $54.08. Magna International shares last traded at $52.72, with a volume of 635,020 shares.

The company reported $1.11 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.98 by $0.13. The company had revenue of $10.67 billion for the quarter, compared to analysts’ expectations of $9.90 billion. Magna International had a net margin of 1.56% and a return on equity of 10.49%. The business’s revenue was up 10.7% on a year-over-year basis. During the same quarter in the prior year, the firm earned $1.28 EPS.

Magna International Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, March 10th. Stockholders of record on Friday, February 24th were given a dividend of $0.46 per share. This represents a $1.84 dividend on an annualized basis and a dividend yield of 3.41%. The ex-dividend date of this dividend was Thursday, February 23rd. This is a boost from Magna International’s previous quarterly dividend of $0.45. Magna International’s dividend payout ratio is 91.54%.

Analyst Upgrades and Downgrades

A number of equities analysts have recently issued reports on the stock. Wells Fargo & Company increased their price objective on shares of Magna International from $51.00 to $52.00 and gave the stock an “equal weight” rating in a research report on Monday, April 10th. Citigroup dropped their price target on shares of Magna International from $66.00 to $53.00 and set a “neutral” rating on the stock in a research report on Monday, February 13th. Raymond James dropped their price target on shares of Magna International from $62.00 to $56.00 and set a “market perform” rating on the stock in a research report on Monday, February 13th. BMO Capital Markets dropped their price target on shares of Magna International from C$74.00 to C$65.00 and set an “outperform” rating on the stock in a research report on Monday, February 13th. Finally, Morgan Stanley dropped their price target on shares of Magna International from $72.00 to $65.00 and set an “overweight” rating on the stock in a research report on Thursday, February 16th. Eight analysts have rated the stock with a hold rating and four have given a buy rating to the stock. According to MarketBeat, the stock has a consensus rating of “Hold” and a consensus price target of $61.58.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of the business. Knights of Columbus Asset Advisors LLC lifted its stake in Magna International by 6.7% in the third quarter. Knights of Columbus Asset Advisors LLC now owns 3,017 shares of the company’s stock worth $143,000 after purchasing an additional 189 shares during the last quarter. Lyell Wealth Management LP bought a new position in shares of Magna International in the fourth quarter worth approximately $225,000. SG Americas Securities LLC lifted its stake in shares of Magna International by 19.0% in the fourth quarter. SG Americas Securities LLC now owns 20,965 shares of the company’s stock worth $1,178,000 after buying an additional 3,344 shares in the last quarter. Strengthening Families & Communities LLC lifted its stake in shares of Magna International by 4.4% in the fourth quarter. Strengthening Families & Communities LLC now owns 26,667 shares of the company’s stock worth $1,497,000 after buying an additional 1,117 shares in the last quarter. Finally, Quantbot Technologies LP lifted its position in Magna International by 177.5% during the third quarter. Quantbot Technologies LP now owns 33,038 shares of the company’s stock valued at $1,566,000 after purchasing an additional 21,134 shares during the period. 59.63% of the stock is currently owned by hedge funds and other institutional investors.

Magna International Trading Up 7.5 %

The company has a market cap of $15.44 billion, a P/E ratio of 26.86, a P/E/G ratio of 0.58 and a beta of 1.59. The company has a debt-to-equity ratio of 0.25, a current ratio of 1.14 and a quick ratio of 0.76. The stock’s 50-day moving average is $52.81 and its two-hundred day moving average is $56.93.

About Magna International

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Magna International, Inc is a mobility technology company, which engages in the design, engineering, and manufacturing of automotive supplies. It operates through the following segments: Body Exteriors and Structures, Power and Vision, Seating Systems, and Complete Vehicles. The Body Exteriors and Structures segment includes body and chassis systems, exterior systems, and roof systems operations.