Magna International (NYSE:MGA) Lowered to Sell at Zacks Investment Research

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Magna International (NYSE:MGA) (TSE:MG) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a report released on Tuesday, Zacks.com reports. They presently have a $51.00 price target on the stock. Zacks Investment Research‘s price objective suggests a potential upside of 6.63% from the company’s current price.

According to Zacks, “Magna’s estimates for the current quarter and fiscal have undergone negative revisions lately. For 2019, Magna anticipates net income to be $1.9-$2.1 billion, lower than the prior expectation of $2.1-$2.3 billion due to higher costs. Fluctuating foreign currencies and a stronger U.S. dollar along with customer price concessions are likely to hurt the bottom line. Softening vehicle production across major markets and lower-than-expected equity income from a transmission joint venture in China adds to its woes. Nevertheless, Magna will benefit from innovation and technological development for growth and program launches to meet the rising demand for crossover & SUVs. Business expansion through joint ventures and hub openings while divesting non-core units, will also aid growth. “

Other equities research analysts also recently issued reports about the company. Credit Suisse Group assumed coverage on Magna International in a report on Wednesday, June 26th. They set a “neutral” rating and a $55.00 price target for the company. BMO Capital Markets reaffirmed a “sell” rating on shares of Bonterra Energy in a report on Thursday, March 21st. CIBC reaffirmed a “market perform” rating on shares of CVS Health in a report on Monday, April 15th. Wolfe Research downgraded Magna International from an “outperform” rating to a “peer perform” rating in a report on Wednesday, May 1st. Finally, Veritas Investment Research raised Magna International from a “sell” rating to a “buy” rating in a report on Wednesday, June 19th. Three analysts have rated the stock with a sell rating, six have issued a hold rating and five have assigned a buy rating to the company’s stock. The company currently has an average rating of “Hold” and an average target price of $57.44.

Shares of NYSE MGA opened at $47.83 on Tuesday. The company has a current ratio of 1.22, a quick ratio of 0.87 and a debt-to-equity ratio of 0.26. The business’s fifty day moving average is $46.88. Magna International has a 1-year low of $42.51 and a 1-year high of $61.65. The firm has a market capitalization of $15.35 billion, a P/E ratio of 7.45, a PEG ratio of 1.26 and a beta of 1.62.

Magna International (NYSE:MGA) (TSE:MG) last issued its quarterly earnings results on Thursday, May 9th. The company reported $1.63 earnings per share for the quarter, missing the Thomson Reuters’ consensus estimate of $1.73 by ($0.10). Magna International had a return on equity of 19.01% and a net margin of 6.75%. The company had revenue of $10.59 billion for the quarter, compared to analyst estimates of $10.60 billion. During the same period in the prior year, the business earned $1.84 earnings per share. Magna International’s revenue for the quarter was down 1.9% compared to the same quarter last year. On average, research analysts expect that Magna International will post 6.41 EPS for the current year.

A number of large investors have recently added to or reduced their stakes in the business. Squar Milner Financial Services LLC raised its position in Magna International by 5.7% in the first quarter. Squar Milner Financial Services LLC now owns 3,504 shares of the company’s stock worth $170,000 after acquiring an additional 188 shares in the last quarter. Greenleaf Trust raised its position in Magna International by 3.2% in the first quarter. Greenleaf Trust now owns 6,917 shares of the company’s stock worth $337,000 after acquiring an additional 212 shares in the last quarter. CLARET ASSET MANAGEMENT Corp raised its position in Magna International by 3.4% in the first quarter. CLARET ASSET MANAGEMENT Corp now owns 8,862 shares of the company’s stock worth $431,000 after acquiring an additional 289 shares in the last quarter. SevenBridge Financial Group LLC raised its position in Magna International by 223.3% in the second quarter. SevenBridge Financial Group LLC now owns 679 shares of the company’s stock worth $34,000 after acquiring an additional 469 shares in the last quarter. Finally, Liberty Wealth Management LLC purchased a new position in Magna International in the fourth quarter worth $32,000. Hedge funds and other institutional investors own 57.57% of the company’s stock.

Magna International Company Profile

Magna International Inc designs, develops, and manufactures automotive systems, assemblies, modules, and components in North America, Europe, Asia Pacific, and internationally. The Body Exteriors & Structures segment provides body structures; chassis structures, such as frame and structural assemblies, chassis subframes, and suspension systems; exterior systems and modules, including hoods, roofs, door panels, front end modules, liftgate modules, polycarbonate roof panels, liftgate sensor integration systems, and fascia; trim and automotive jewelry comprises engineered glass, trim and roof racks, and running boards; non-visible and visible active grille shutters, active air deflectors, and underbody panels; and fuel systems, pipes and components, and alternative energy storage systems.

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