Magna International (NYSE:MGA) Sees Large Volume Increase – Should You Buy?

Shares of Magna International Inc. (NYSE:MGA) (TSE:MG) saw strong trading volume on Wednesday . 4,661,910 shares were traded during mid-day trading, an increase of 183% from the previous session’s volume of 1,646,984 shares.The stock last traded at $38.15 and had previously closed at $38.21.

Analyst Ratings Changes

A number of analysts have recently weighed in on MGA shares. StockNews.com raised Magna International from a “hold” rating to a “buy” rating in a research note on Monday, November 4th. Royal Bank of Canada lowered their target price on Magna International from $52.00 to $51.00 and set an “outperform” rating on the stock in a report on Tuesday, February 18th. The Goldman Sachs Group downgraded shares of Magna International from a “neutral” rating to a “sell” rating and lowered their price target for the company from $42.00 to $41.00 in a report on Wednesday, December 11th. TD Securities reduced their price objective on Magna International from $50.00 to $47.00 and set a “buy” rating on the stock in a research note on Tuesday, February 18th. Finally, UBS Group cut their price target on shares of Magna International from $44.00 to $41.00 and set a “neutral” rating on the stock in a report on Tuesday, February 18th. One investment analyst has rated the stock with a sell rating, twelve have assigned a hold rating and seven have assigned a buy rating to the stock. According to data from MarketBeat.com, the stock has a consensus rating of “Hold” and a consensus price target of $48.88.

Magna International Stock Performance

The firm’s fifty day simple moving average is $40.23 and its 200 day simple moving average is $41.57. The company has a market capitalization of $10.71 billion, a PE ratio of 10.79, a price-to-earnings-growth ratio of 0.63 and a beta of 1.61. The company has a debt-to-equity ratio of 0.35, a current ratio of 1.08 and a quick ratio of 0.77.

Magna International (NYSE:MGA) (TSE:MG) last posted its quarterly earnings results on Friday, February 14th. The company reported $1.69 earnings per share for the quarter, topping the consensus estimate of $1.46 by $0.23. Magna International had a net margin of 2.36% and a return on equity of 12.78%. The firm had revenue of $10.63 billion for the quarter, compared to the consensus estimate of $10.32 billion. During the same period last year, the firm posted $1.33 earnings per share. The company’s revenue for the quarter was up 1.7% on a year-over-year basis. On average, research analysts predict that Magna International Inc. will post 5.87 EPS for the current year.

Magna International Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, March 14th. Shareholders of record on Friday, February 28th will be issued a dividend of $0.485 per share. This is an increase from Magna International’s previous quarterly dividend of $0.48. The ex-dividend date is Friday, February 28th. This represents a $1.94 annualized dividend and a yield of 5.11%. Magna International’s dividend payout ratio is 55.27%.

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the business. Avior Wealth Management LLC raised its position in Magna International by 2,400.0% in the 4th quarter. Avior Wealth Management LLC now owns 625 shares of the company’s stock valued at $26,000 after purchasing an additional 600 shares during the last quarter. Kennebec Savings Bank purchased a new position in shares of Magna International during the 3rd quarter worth approximately $32,000. LRI Investments LLC lifted its stake in shares of Magna International by 2,126.5% during the fourth 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 period. Millstone Evans Group LLC acquired a new position in Magna International during the fourth quarter worth approximately $33,000. Finally, Lindbrook Capital LLC raised its holdings in Magna International by 43.1% in the fourth quarter. Lindbrook Capital LLC now owns 1,036 shares of the company’s stock valued at $43,000 after buying an additional 312 shares during the period. Hedge funds and other institutional investors own 67.49% of the company’s stock.

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.