Magna International (NYSE:MGA) Sees Unusually-High Trading Volume - Still a Buy?

Shares of Magna International Inc. (NYSE:MGA - Get Free Report) TSE: MG saw strong trading volume on Wednesday . 4,661,910 shares traded hands during mid-day trading, an increase of 183% from the previous session's volume of 1,646,984 shares.The stock last traded at $38.15 and had previously closed at $38.21.

Analysts Set New Price Targets

Several equities research analysts have recently weighed in on the company. Wells Fargo & Company reduced their price objective on Magna International from $46.00 to $44.00 and set an "equal weight" rating for the company in a research report on Monday, December 16th. Royal Bank of Canada reduced their price objective on Magna International from $52.00 to $51.00 and set an "outperform" rating for the company in a research report on Tuesday, February 18th. UBS Group reduced their target price on Magna International from $44.00 to $41.00 and set a "neutral" rating for the company in a research report on Tuesday, February 18th. CIBC raised their target price on Magna International from $46.00 to $51.00 in a research report on Monday, January 13th. Finally, The Goldman Sachs Group cut Magna International from a "neutral" rating to a "sell" rating and reduced their target price for the stock from $42.00 to $41.00 in a research report on Wednesday, December 11th. One analyst has rated the stock with a sell rating, twelve have issued a hold rating and seven have given a buy rating to the stock. According to data from MarketBeat, the stock currently has a consensus rating of "Hold" and an average target price of $48.88.

Magna International Stock Performance

The company has a market capitalization of $10.28 billion, a price-to-earnings ratio of 10.38, a price-to-earnings-growth ratio of 0.63 and a beta of 1.61. The company has a debt-to-equity ratio of 0.35, a current ratio of 1.08 and a quick ratio of 0.77. The stock has a 50 day moving average price of $39.96 and a two-hundred day moving average price of $41.52.

Magna International (NYSE:MGA - Get Free Report) TSE: MG last announced its earnings results on Friday, February 14th. The company reported $1.69 earnings per share for the quarter, beating analysts' consensus estimates of $1.46 by $0.23. Magna International had a return on equity of 12.78% and a net margin of 2.36%. The company had revenue of $10.63 billion during the quarter, compared to analyst estimates of $10.32 billion. During the same period last year, the company posted $1.33 earnings per share. The firm's quarterly revenue was up 1.7% compared to the same quarter last year. On average, analysts predict that Magna International Inc. will post 5.87 EPS for the current fiscal year.

Magna International Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, March 14th. Investors of record on Friday, February 28th will be given a $0.485 dividend. This represents a $1.94 dividend on an annualized basis and a yield of 5.33%. This is a positive change from Magna International's previous quarterly dividend of $0.48. The ex-dividend date of this dividend is Friday, February 28th. Magna International's dividend payout ratio (DPR) is presently 55.27%.

Institutional Trading of Magna International

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in MGA. Avior Wealth Management LLC increased its position in Magna International by 2,400.0% in the fourth quarter. Avior Wealth Management LLC now owns 625 shares of the company's stock worth $26,000 after purchasing an additional 600 shares during the period. Kennebec Savings Bank acquired a new stake in Magna International in the third quarter worth about $32,000. LRI Investments LLC increased its position in Magna International by 2,126.5% in the fourth quarter. LRI Investments LLC now owns 757 shares of the company's stock worth $32,000 after purchasing an additional 723 shares during the period. Millstone Evans Group LLC acquired a new stake in Magna International in the fourth quarter worth about $33,000. Finally, Lindbrook Capital LLC increased its position in Magna International by 43.1% in the fourth quarter. Lindbrook Capital LLC now owns 1,036 shares of the company's stock worth $43,000 after purchasing an additional 312 shares during the period. 67.49% of the stock is currently owned by institutional investors and hedge funds.

Magna International Company Profile

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.