Magna International (NYSE:MGA) Shares Gap Down – Should You Sell?

Magna International Inc. (NYSE:MGA) (TSE:MG)’s share price gapped down before the market opened on Friday . The stock had previously closed at $39.67, but opened at $37.49. Magna International shares last traded at $38.08, with a volume of 1,077,460 shares trading hands.

Analyst Ratings Changes

Several research analysts have recently issued reports on the company. StockNews.com upgraded Magna International from a “hold” rating to a “buy” rating in a research note on Monday, November 4th. Royal Bank of Canada upgraded shares of Magna International from a “sector perform” rating to an “outperform” rating and lifted their price objective for the company from $41.00 to $52.00 in a research note on Friday, January 24th. The Goldman Sachs Group lowered shares of Magna International from a “neutral” rating to a “sell” rating and cut their price objective for the stock from $42.00 to $41.00 in a research note on Wednesday, December 11th. Wolfe Research upgraded shares of Magna International from an “underperform” rating to a “peer perform” rating in a research report on Thursday, December 5th. Finally, Scotiabank lowered their price target on shares of Magna International from $52.00 to $49.00 and set a “sector perform” rating on the stock in a report on Monday, January 27th. 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 company’s stock. Based on data from MarketBeat.com, the company has a consensus rating of “Hold” and an average target price of $50.24.

Magna International Stock Down 4.5 %

The company has a debt-to-equity ratio of 0.39, a quick ratio of 0.77 and a current ratio of 1.14. The stock has a market cap of $10.72 billion, a price-to-earnings ratio of 10.13, a PEG ratio of 0.60 and a beta of 1.61. The business’s 50 day moving average is $41.14 and its 200-day moving average is $41.67.

Magna International (NYSE:MGA) (TSE:MG) last released 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 2.52% and a return on equity of 11.88%. The firm had revenue of $10.63 billion during the quarter, compared to the consensus estimate of $10.32 billion. During the same quarter in the prior year, the firm earned $1.33 EPS. The company’s revenue for the quarter was up 1.7% on a year-over-year basis. On average, sell-side analysts predict that Magna International Inc. will post 5.23 EPS for the current fiscal year.

Magna International Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, March 14th. Investors of record on Friday, February 28th will be given a dividend of $0.485 per share. This represents a $1.94 annualized dividend and a dividend yield of 5.12%. This is a boost from Magna International’s previous quarterly dividend of $0.48. The ex-dividend date of this dividend is Friday, February 28th. Magna International’s payout ratio is presently 55.27%.

Institutional Investors Weigh In On Magna International

Several institutional investors and hedge funds have recently added to or reduced their stakes in the business. Toronto Dominion Bank boosted its position in Magna International by 1.2% during the third quarter. Toronto Dominion Bank now owns 1,627,927 shares of the company’s stock worth $66,810,000 after acquiring an additional 18,704 shares during the last quarter. Quantbot Technologies LP boosted its holdings in shares of Magna International by 12.5% during the 3rd quarter. Quantbot Technologies LP now owns 149,327 shares of the company’s stock worth $6,128,000 after purchasing an additional 16,639 shares during the last quarter. DGS Capital Management LLC grew its position in shares of Magna International by 111.0% in the fourth quarter. DGS Capital Management LLC now owns 21,048 shares of the company’s stock valued at $880,000 after purchasing an additional 11,072 shares in the last quarter. Geode Capital Management LLC increased its holdings in shares of 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 purchasing an additional 32,000 shares during the last quarter. Finally, Thurston Springer Miller Herd & Titak Inc. lifted its position in Magna International by 37.2% during the fourth quarter. Thurston Springer Miller Herd & Titak Inc. now owns 1,111 shares of the company’s stock worth $46,000 after buying an additional 301 shares in the last quarter. Institutional investors and hedge funds own 67.49% of the company’s stock.

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.