Magna International (NYSE:MGA) Shares Gap Up After Dividend Announcement

Magna International Inc. (NYSE:MGA) (TSE:MG) gapped up prior to trading on Friday following a dividend announcement from the company. The stock had previously closed at $39.47, but opened at $42.10. Magna International shares last traded at $42.90, with a volume of 674,297 shares changing hands.

The newly announced dividend which will be paid on Friday, November 29th. Investors of record on Friday, November 15th will be issued a dividend of $0.475 per share. This represents a $1.90 annualized dividend and a yield of 4.53%. The ex-dividend date of this dividend is Friday, November 15th. Magna International’s dividend payout ratio (DPR) is presently 55.39%.

Analysts Set New Price Targets

Several research firms recently weighed in on MGA. Wells Fargo & Company boosted their price target on shares of Magna International from $43.00 to $44.00 and gave the stock an “equal weight” rating in a report on Friday, September 20th. Evercore ISI dropped their target price on shares of Magna International from $60.00 to $50.00 and set an “in-line” rating on the stock in a research note on Monday, July 15th. BMO Capital Markets dropped their target price on shares of Magna International from $60.00 to $55.00 and set an “outperform” rating on the stock in a research note on Monday, July 22nd. Morgan Stanley cut shares of Magna International from an “overweight” rating to an “equal weight” rating and dropped their target price for the company from $55.00 to $43.00 in a research note on Wednesday, September 25th. Finally, Citigroup dropped their target price on shares of Magna International from $52.00 to $47.00 and set a “neutral” rating on the stock in a research note on Friday, July 12th. One investment analyst has rated the stock with a sell rating, fourteen have given a hold rating and five have given a buy rating to the company. According to data from MarketBeat.com, the stock currently has a consensus rating of “Hold” and an average target price of $49.65.

Magna International Stock Up 6.3 %

The company has a market cap of $12.06 billion, a PE ratio of 12.24, a P/E/G ratio of 0.63 and a beta of 1.59. The company’s 50 day moving average is $41.34 and its 200 day moving average is $43.18. The company has a current ratio of 1.12, a quick ratio of 0.77 and a debt-to-equity ratio of 0.40.

Magna International (NYSE:MGA) (TSE:MG) last posted its quarterly earnings results on Friday, November 1st. The company reported $1.28 EPS for the quarter, missing the consensus estimate of $1.48 by ($0.20). Magna International had a return on equity of 12.53% and a net margin of 2.29%. The company had revenue of $10.28 billion during the quarter, compared to analysts’ expectations of $10.34 billion. During the same period in the prior year, the business earned $1.46 EPS. The company’s quarterly revenue was down 3.8% on a year-over-year basis. As a group, analysts predict that Magna International Inc. will post 5.4 earnings per share for the current fiscal year.

Institutional Trading of Magna International

Institutional investors have recently modified their holdings of the company. Van ECK Associates Corp raised its position in shares of Magna International by 6.6% in the 3rd quarter. Van ECK Associates Corp now owns 12,290 shares of the company’s stock valued at $517,000 after purchasing an additional 766 shares during the last quarter. Janney Montgomery Scott LLC raised its position in shares of Magna International by 11.4% in the 3rd quarter. Janney Montgomery Scott LLC now owns 210,632 shares of the company’s stock valued at $8,644,000 after purchasing an additional 21,532 shares during the last quarter. Arkadios Wealth Advisors purchased a new position in shares of Magna International in the 3rd quarter valued at approximately $216,000. Forsta AP Fonden raised its position in shares of Magna International by 20.3% in the 3rd quarter. Forsta AP Fonden now owns 84,300 shares of the company’s stock valued at $3,462,000 after purchasing an additional 14,200 shares during the last quarter. Finally, Grove Bank & Trust raised its position in shares of Magna International by 70.4% in the 3rd quarter. Grove Bank & Trust now owns 830 shares of the company’s stock valued at $34,000 after purchasing an additional 343 shares during the last quarter. 67.49% of the stock is currently owned by 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.