Magna International (NYSE:MGA) Shares Down 7.8% – Time to Sell?

Magna International Inc. (NYSE:MGA) (TSE:MG) fell 7.8% during trading on Thursday . The company traded as low as $34.56 and last traded at $34.71. 740,386 shares changed hands during mid-day trading, a decline of 56% from the average session volume of 1,684,318 shares. The stock had previously closed at $37.65.

Wall Street Analyst Weigh In

Several research firms have recently weighed in on MGA. CIBC reduced their target price on Magna International from $44.00 to $36.50 and set a “neutral” rating for the company in a report on Wednesday, March 5th. Wolfe Research upgraded Magna International from an “underperform” rating to a “peer perform” rating in a research report on Thursday, December 5th. The Goldman Sachs Group cut Magna International from a “neutral” rating to a “sell” rating and lowered their price target for the stock from $42.00 to $41.00 in a report on Wednesday, December 11th. Scotiabank reduced their price target on shares of Magna International from $49.00 to $45.00 and set a “sector perform” rating on the stock in a report on Tuesday, February 18th. Finally, TD Securities reduced their target price on shares of Magna International from $50.00 to $47.00 and set a “buy” rating on the stock in a report on Tuesday, February 18th. One analyst has rated the stock with a sell rating, thirteen have given a hold rating and six have assigned a buy rating to the company. According to data from MarketBeat.com, the company presently has a consensus rating of “Hold” and a consensus price target of $47.03.

Magna International Stock Down 7.8 %

The firm’s 50-day moving average is $38.26 and its two-hundred day moving average is $40.94. The company has a debt-to-equity ratio of 0.35, a quick ratio of 0.77 and a current ratio of 1.08. The stock has a market cap of $9.78 billion, a P/E ratio of 9.88, a PEG ratio of 0.63 and a beta of 1.65.

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

Magna International Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, March 14th. Investors of record on Friday, February 28th were paid a dividend of $0.485 per share. The ex-dividend date of this dividend was Friday, February 28th. This is a boost from Magna International’s previous quarterly dividend of $0.48. This represents a $1.94 dividend on an annualized basis and a dividend yield of 5.59%. Magna International’s payout ratio is 55.27%.

Hedge Funds Weigh In On Magna International

Institutional investors have recently modified their holdings of the stock. Avior Wealth Management LLC grew its stake in Magna International by 2,400.0% in the fourth quarter. Avior Wealth Management LLC now owns 625 shares of the company’s stock valued at $26,000 after acquiring an additional 600 shares during the period. LRI Investments LLC increased its stake in Magna International by 2,126.5% during the 4th quarter. LRI Investments LLC now owns 757 shares of the company’s stock worth $32,000 after purchasing an additional 723 shares in the last quarter. Millstone Evans Group LLC acquired a new stake in Magna International during the 4th quarter worth approximately $33,000. Lindbrook Capital LLC lifted its stake 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 in the last quarter. Finally, Thurston Springer Miller Herd & Titak Inc. lifted its position in Magna International by 37.2% in the 4th quarter. Thurston Springer Miller Herd & Titak Inc. now owns 1,111 shares of the company’s stock valued at $46,000 after acquiring an additional 301 shares in the last quarter. 67.49% of the stock is currently owned by institutional investors and hedge funds.

About Magna International

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.