Magna International (NYSE:MGA) Reaches New 12-Month High – Should You Buy?

Magna International Inc. (NYSE:MGA) (TSE:MG) shares hit a new 52-week high on Wednesday . The stock traded as high as $69.99 and last traded at $69.5830, with a volume of 238837 shares changing hands. The stock had previously closed at $69.02.

Wall Street Analyst Weigh In

A number of equities research analysts have weighed in on MGA shares. The Goldman Sachs Group decreased their target price on shares of Magna International from $60.00 to $52.00 and set a “sell” rating for the company in a research note on Tuesday, April 14th. Zacks Research downgraded Magna International from a “strong-buy” rating to a “hold” rating in a research note on Friday, May 1st. UBS Group boosted their target price on Magna International from $62.00 to $64.00 and gave the stock a “neutral” rating in a research report on Thursday, July 9th. Scotiabank lifted their price target on Magna International from $72.00 to $74.00 and gave the stock a “sector outperform” rating in a research report on Monday, July 20th. Finally, Veritas raised shares of Magna International to a “strong-buy” rating in a research report on Monday, May 4th. One equities research analyst has rated the stock with a Strong Buy rating, eight have issued a Buy rating, ten have issued a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, the company has an average rating of “Hold” and a consensus target price of $65.73.

Magna International Price Performance

The stock has a market cap of $18.53 billion, a price-to-earnings ratio of 28.98, a price-to-earnings-growth ratio of 0.92 and a beta of 1.44. The stock’s 50 day moving average price is $65.45 and its two-hundred day moving average price is $60.78. The company has a quick ratio of 0.88, a current ratio of 1.22 and a debt-to-equity ratio of 0.38.

Magna International (NYSE:MGA) (TSE:MG) last posted its earnings results on Friday, May 1st. The company reported $1.38 earnings per share for the quarter, beating the consensus estimate of $1.01 by $0.37. Magna International had a net margin of 1.60% and a return on equity of 14.01%. The firm had revenue of $10.13 billion during the quarter, compared to analyst estimates of $10.14 billion. During the same period in the previous year, the firm earned $0.78 EPS. The business’s quarterly revenue was up 3.1% on a year-over-year basis. Magna International has set its FY 2026 guidance at 6.250-7.250 EPS. Equities research analysts forecast that Magna International Inc. will post 6.82 EPS for the current fiscal year.

Magna International Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Friday, May 29th. Stockholders of record on Friday, May 15th were given a dividend of $0.495 per share. The ex-dividend date of this dividend was Friday, May 15th. This represents a $1.98 annualized dividend and a dividend yield of 2.9%. Magna International’s payout ratio is presently 82.85%.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the company. Hillsdale Investment Management Inc. increased its holdings in Magna International by 2.3% during the 4th quarter. Hillsdale Investment Management Inc. now owns 725,425 shares of the company’s stock worth $38,741,000 after purchasing an additional 16,255 shares during the period. Plato Investment Management Ltd increased its holdings in shares of Magna International by 74.5% in the 4th quarter. Plato Investment Management Ltd now owns 69,752 shares of the company’s stock valued at $3,741,000 after acquiring an additional 29,785 shares during the period. Public Employees Retirement System of Ohio lifted its holdings in shares of Magna International by 43.5% during the first quarter. Public Employees Retirement System of Ohio now owns 199,358 shares of the company’s stock worth $11,095,000 after purchasing an additional 60,432 shares during the period. Mediolanum International Funds Ltd raised its stake in shares of Magna International by 83.1% during the 1st quarter. Mediolanum International Funds Ltd now owns 134,736 shares of the company’s stock worth $7,210,000 after buying an additional 61,151 shares in the last quarter. Finally, ARGA Investment Management LP lifted its stake in shares of Magna International by 1.1% in the fourth quarter. ARGA Investment Management LP now owns 4,193,129 shares of the company’s stock valued at $223,512,000 after purchasing an additional 44,996 shares during the period. 67.49% of the stock is currently owned by institutional investors and hedge funds.

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.