Scotiabank Expects Stronger Earnings for Magna International

Magna International Inc. (NYSE:MGA) (TSE:MG) – Investment analysts at Scotiabank boosted their FY2026 EPS estimates for Magna International in a research note issued to investors on Thursday, February 19th. Scotiabank analyst J. Goldman now anticipates that the company will earn $7.07 per share for the year, up from their prior estimate of $6.00. Scotiabank currently has a “Sector Perform” rating and a $69.00 price objective on the stock. The consensus estimate for Magna International’s current full-year earnings is $5.87 per share. Scotiabank also issued estimates for Magna International’s FY2027 earnings at $8.73 EPS.

Magna International (NYSE:MGA) (TSE:MG) last posted its earnings results on Friday, February 13th. The company reported $2.18 EPS for the quarter, beating analysts’ consensus estimates of $1.81 by $0.37. The firm had revenue of $10.74 billion for the quarter, compared to analysts’ expectations of $10.54 billion. Magna International had a return on equity of 12.73% and a net margin of 1.99%.The company’s quarterly revenue was up 2.1% on a year-over-year basis. During the same period last year, the firm earned $1.69 EPS. Magna International has set its FY 2026 guidance at 6.250-7.250 EPS.

A number of other research firms have also recently weighed in on MGA. Citigroup upped their price objective on shares of Magna International from $49.00 to $55.00 and gave the stock a “neutral” rating in a research report on Friday, November 14th. BMO Capital Markets boosted their target price on shares of Magna International from $49.00 to $52.00 and gave the stock an “outperform” rating in a research note on Monday, November 3rd. JPMorgan Chase & Co. raised their price target on shares of Magna International from $53.00 to $57.00 and gave the company an “overweight” rating in a research note on Monday, November 3rd. Morgan Stanley lifted their price objective on Magna International from $54.00 to $65.00 and gave the stock an “equal weight” rating in a report on Wednesday, February 18th. Finally, Wells Fargo & Company increased their target price on Magna International from $50.00 to $58.00 and gave the company an “equal weight” rating in a report on Monday, January 12th. Four analysts have rated the stock with a Buy rating, thirteen have assigned a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat.com, the stock presently has a consensus rating of “Hold” and an average price target of $61.73.

Magna International Trading Down 1.6%

Shares of MGA stock opened at $63.89 on Monday. Magna International has a 1-year low of $30.39 and a 1-year high of $69.94. The company has a market cap of $17.82 billion, a price-to-earnings ratio of 21.66 and a beta of 1.50. The company has a debt-to-equity ratio of 0.36, a current ratio of 1.25 and a quick ratio of 0.87. The stock has a 50 day simple moving average of $56.05 and a 200-day simple moving average of $50.16.

Institutional Investors Weigh In On Magna International

Several hedge funds and other institutional investors have recently made changes to their positions in MGA. Plato Investment Management Ltd acquired a new position in Magna International in the 3rd quarter valued at about $1,880,000. ARGA Investment Management LP raised its position in shares of Magna International by 33.2% during the 3rd quarter. ARGA Investment Management LP now owns 4,148,133 shares of the company’s stock valued at $196,557,000 after buying an additional 1,033,747 shares during the period. AGF Management Ltd. acquired a new position in Magna International in the third quarter valued at approximately $14,191,000. Meritage Portfolio Management acquired a new position in Magna International in the third quarter valued at approximately $3,551,000. Finally, Western Wealth Management LLC purchased a new position in Magna International in the second quarter worth approximately $249,000. Institutional investors and hedge funds own 67.49% of the company’s stock.

Magna International Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, March 13th. Stockholders of record on Friday, February 27th will be given a $0.495 dividend. This represents a $1.98 dividend on an annualized basis and a dividend yield of 3.1%. This is a boost from Magna International’s previous quarterly dividend of $0.49. The ex-dividend date is Friday, February 27th. Magna International’s dividend payout ratio (DPR) is currently 65.76%.

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.