Zacks Investment Research downgraded shares of Magna International (NYSE:MGA) (TSE:MG) from a hold rating to a sell rating in a report released on Tuesday, Zacks.com reports. The firm currently has $51.00 target price on the stock.
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. “
A number of other analysts have also commented on the company. ValuEngine raised VESTAS WIND SYS/ADR from a hold rating to a buy rating in a research note on Thursday, May 9th. Seaport Global Securities reaffirmed a buy rating on shares of Magna International in a research note on Tuesday, April 16th. Citigroup lowered Barrick Gold to a neutral rating in a research note on Thursday, May 23rd. BMO Capital Markets reaffirmed a sell rating on shares of Bonterra Energy in a research note on Thursday, March 21st. Finally, Wolfe Research downgraded Magna International from an outperform rating to a peer perform rating in a research report on Wednesday, May 1st. Three analysts have rated the stock with a sell rating, six have given a hold rating and five have issued a buy rating to the company. Magna International currently has an average rating of Hold and a consensus target price of $57.56.
Magna International (NYSE:MGA) (TSE:MG) last posted its 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). The firm had revenue of $10.59 billion during the quarter, compared to analyst estimates of $10.60 billion. Magna International had a net margin of 6.75% and a return on equity of 19.01%. The firm’s revenue for the quarter was down 1.9% on a year-over-year basis. During the same period last year, the company posted $1.84 EPS. Sell-side analysts anticipate that Magna International will post 6.41 EPS for the current fiscal year.
A number of hedge funds and other institutional investors have recently added to or reduced their stakes in MGA. MU Investments Co. Ltd. raised its holdings in Magna International by 2.0% in the 2nd quarter. MU Investments Co. Ltd. now owns 122,100 shares of the company’s stock valued at $6,049,000 after acquiring an additional 2,400 shares in the last quarter. SevenBridge Financial Group LLC grew its stake in shares of Magna International by 223.3% in the 2nd quarter. SevenBridge Financial Group LLC now owns 679 shares of the company’s stock valued at $34,000 after purchasing an additional 469 shares during the period. Cardinal Capital Management Inc. grew its stake in shares of Magna International by 3.0% in the 2nd quarter. Cardinal Capital Management Inc. now owns 739,946 shares of the company’s stock valued at $36,816,000 after purchasing an additional 21,515 shares during the period. Horizon Investments LLC bought a new stake in shares of Magna International in the 1st quarter valued at approximately $2,090,000. Finally, Cerebellum GP LLC bought a new stake in shares of Magna International in the 1st quarter valued at approximately $329,000. 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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