Magna International (NYSE:MGA) Shares Gap Down - Here's Why

Magna International Inc. (NYSE:MGA - Get Free Report) TSE: MG shares gapped down prior to trading 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 traded.

Wall Street Analyst Weigh In

MGA has been the topic of several recent research reports. The Goldman Sachs Group downgraded Magna International from a "neutral" rating to a "sell" rating and cut their price target for the stock from $42.00 to $41.00 in a research note on Wednesday, December 11th. Scotiabank cut their target price on Magna International from $49.00 to $45.00 and set a "sector perform" rating on the stock in a research note on Tuesday. Royal Bank of Canada lowered their price target on Magna International from $52.00 to $51.00 and set an "outperform" rating for the company in a research report on Tuesday. CIBC upped their price objective on Magna International from $46.00 to $51.00 in a research report on Monday, January 13th. Finally, Wolfe Research upgraded Magna International from an "underperform" rating to a "peer perform" rating in a research note on Thursday, December 5th. One equities research analyst has rated the stock with a sell rating, twelve have given a hold rating and seven have assigned a buy rating to the stock. According to data from MarketBeat.com, the stock has an average rating of "Hold" and an average target price of $48.88.

Magna International Stock Performance

The company has a market cap of $10.77 billion, a PE ratio of 10.18, a P/E/G ratio of 0.60 and a beta of 1.61. 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 business's fifty day moving average is $40.99 and its 200-day moving average is $41.61.

Magna International (NYSE:MGA - Get Free Report) TSE: MG last issued its quarterly earnings data on Friday, February 14th. The company reported $1.69 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.46 by $0.23. The firm had revenue of $10.63 billion during the quarter, compared to the consensus estimate of $10.32 billion. Magna International had a net margin of 2.52% and a return on equity of 11.88%. The company's revenue for the quarter was up 1.7% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $1.33 EPS. As a group, research analysts predict that Magna International Inc. will post 5.23 EPS for the current fiscal year.

Magna International Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, March 14th. Shareholders of record on Friday, February 28th will be given a $0.485 dividend. 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. This represents a $1.94 dividend on an annualized basis and a yield of 5.10%. Magna International's dividend payout ratio is presently 50.80%.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in MGA. Avior Wealth Management LLC lifted its holdings in Magna International by 2,400.0% during the fourth quarter. Avior Wealth Management LLC now owns 625 shares of the company's stock valued at $26,000 after purchasing an additional 600 shares in the last quarter. Kennebec Savings Bank purchased a new position in shares of Magna International during the 3rd quarter valued at $32,000. LRI Investments LLC lifted its stake in shares of Magna International by 2,126.5% during the 4th quarter. LRI Investments LLC now owns 757 shares of the company's stock valued at $32,000 after buying an additional 723 shares in the last quarter. Millstone Evans Group LLC bought a new position in Magna International in the 4th quarter worth $33,000. Finally, Lindbrook Capital LLC increased its stake in Magna International by 43.1% in the 4th quarter. Lindbrook Capital LLC now owns 1,036 shares of the company's stock worth $43,000 after buying an additional 312 shares in 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.