Scotiabank Expects Weaker Earnings for Magna International

Magna International Inc. (NYSE:MGA) (TSE:MG) – Equities research analysts at Scotiabank cut their FY2024 earnings per share (EPS) estimates for Magna International in a research note issued on Wednesday, January 8th. Scotiabank analyst J. Goldman now expects that the company will earn $5.39 per share for the year, down from their previous estimate of $5.41. Scotiabank has a “Sector Perform” rating and a $52.00 price target on the stock. The consensus estimate for Magna International’s current full-year earnings is $5.22 per share.

MGA has been the topic of a number of other research reports. Wolfe Research raised shares of Magna International from an “underperform” rating to a “peer perform” rating in a research note on Thursday, December 5th. UBS Group upped their price objective on Magna International from $44.00 to $45.00 and gave the stock a “neutral” rating in a research note on Monday, November 4th. The Goldman Sachs Group downgraded Magna International from a “neutral” rating to a “sell” rating and decreased their target price for the company from $42.00 to $41.00 in a research note on Wednesday, December 11th. TD Securities decreased their target price on shares of Magna International from $53.00 to $52.00 and set a “buy” rating on the stock in a research report on Monday, September 30th. Finally, Royal Bank of Canada cut their target price on Magna International from $42.00 to $41.00 and set a “sector perform” rating on the stock in a research note on Monday, November 4th. One investment analyst has rated the stock with a sell rating, thirteen have assigned a hold rating and six have assigned a buy rating to the company. According to data from MarketBeat.com, Magna International has an average rating of “Hold” and an average target price of $49.65.

Magna International Price Performance

MGA opened at $40.33 on Friday. The company has a debt-to-equity ratio of 0.39, a current ratio of 1.14 and a quick ratio of 0.77. The stock’s 50 day simple moving average is $43.38 and its 200 day simple moving average is $42.32. The firm has a market cap of $11.50 billion, a price-to-earnings ratio of 10.78, a PEG ratio of 0.81 and a beta of 1.62. Magna International has a 1 year low of $38.01 and a 1 year high of $59.37.

Magna International (NYSE:MGA) (TSE:MG) last issued its quarterly earnings results on Friday, November 1st. The company reported $1.28 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $1.48 by ($0.20). The business had revenue of $10.28 billion for the quarter, compared to the consensus estimate of $10.34 billion. Magna International had a net margin of 2.52% and a return on equity of 11.88%. The business’s revenue was down 3.8% compared to the same quarter last year. During the same quarter last year, the business posted $1.46 EPS.

Magna International Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Friday, November 29th. Stockholders of record on Friday, November 15th were issued a $0.475 dividend. This represents a $1.90 dividend on an annualized basis and a dividend yield of 4.71%. The ex-dividend date of this dividend was Friday, November 15th. Magna International’s dividend payout ratio is presently 50.80%.

Institutional Trading of Magna International

Several large investors have recently made changes to their positions in MGA. DGS Capital Management LLC grew its position in Magna International by 25.5% during the third quarter. DGS Capital Management LLC now owns 9,976 shares of the company’s stock valued at $409,000 after buying an additional 2,027 shares during the period. Toronto Dominion Bank grew its holdings in shares of Magna International by 1.2% in the third quarter. Toronto Dominion Bank now owns 1,627,927 shares of the company’s stock valued at $66,810,000 after purchasing an additional 18,704 shares during the period. Geode Capital Management LLC lifted its holdings in Magna International by 2.9% in the third quarter. Geode Capital Management LLC now owns 1,151,759 shares of the company’s stock valued at $46,799,000 after acquiring an additional 32,000 shares during the last quarter. Public Employees Retirement System of Ohio acquired a new position in Magna International in the third quarter valued at about $1,040,000. Finally, ARGA Investment Management LP purchased a new position in shares of Magna International during the third quarter worth $40,710,000. 67.49% of the stock is owned by hedge funds and other institutional investors.

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.