Scotiabank Expects Lower Earnings for Magna International

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

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

Several other equities analysts also recently issued reports on the company. Wolfe Research raised Magna International from an “underperform” rating to a “peer perform” rating in a research report on Thursday, December 5th. StockNews.com raised Magna International from a “hold” rating to a “buy” rating in a research report on Monday, November 4th. Morgan Stanley downgraded Magna International from an “overweight” rating to an “equal weight” rating and cut their price target for the stock from $55.00 to $43.00 in a research report on Wednesday, September 25th. The Goldman Sachs Group cut Magna International from a “neutral” rating to a “sell” rating and dropped their target price for the company from $42.00 to $41.00 in a research report on Wednesday, December 11th. Finally, Royal Bank of Canada dropped their target price on Magna International from $42.00 to $41.00 and set a “sector perform” rating on the stock in a research report on Monday, November 4th. One equities research analyst has rated the stock with a sell rating, thirteen have assigned a hold rating and six have issued a buy rating to the company’s stock. According to data from MarketBeat, the stock presently has an average rating of “Hold” and a consensus price target of $49.65.

Magna International Price Performance

Shares of NYSE MGA opened at $39.50 on Friday. The company has a quick ratio of 0.77, a current ratio of 1.14 and a debt-to-equity ratio of 0.39. The stock’s 50-day simple moving average is $43.35 and its two-hundred day simple moving average is $42.29. Magna International has a twelve month low of $38.01 and a twelve month high of $59.37. The firm has a market capitalization of $11.26 billion, a P/E ratio of 10.56, a P/E/G ratio of 0.81 and a beta of 1.62.

Magna International Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Friday, November 29th. Stockholders of record on Friday, November 15th were issued a dividend of $0.475 per share. This represents a $1.90 annualized dividend and a dividend yield of 4.81%. The ex-dividend date of this dividend was Friday, November 15th. Magna International’s dividend payout ratio is currently 50.80%.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently made changes to their positions in the stock. Kennebec Savings Bank acquired a new position in shares of Magna International during the 3rd quarter worth approximately $32,000. Grove Bank & Trust boosted its holdings in shares of Magna International by 70.4% during the 3rd quarter. Grove Bank & Trust now owns 830 shares of the company’s stock worth $34,000 after purchasing an additional 343 shares during the last quarter. Massmutual Trust Co. FSB ADV lifted its holdings in Magna International by 84.4% in the third quarter. Massmutual Trust Co. FSB ADV now owns 1,121 shares of the company’s stock valued at $46,000 after acquiring an additional 513 shares during the last quarter. Tobam lifted its holdings in Magna International by 94.3% in the third quarter. Tobam now owns 4,373 shares of the company’s stock valued at $179,000 after acquiring an additional 2,122 shares during the last quarter. Finally, Arkadios Wealth Advisors acquired a new position in Magna International in the third quarter valued at approximately $216,000. 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.