Investment firm TD Securities has raised its price target for Magna International (NYSE:MGA) stock from $57.00 to $58.00, as outlined in a research report released on Monday. The updated target suggests a potential upside of approximately 18.42% from the stock’s previous closing price, indicating strong market confidence in the company’s future performance.
Analysts from other brokerages have also recently adjusted their outlooks on Magna International. Wells Fargo & Company increased its target price from $45.00 to $51.00, maintaining an “equal weight” rating. Meanwhile, CIBC reaffirmed a “neutral” rating, raising its target to $47.00 from $46.00. Similarly, Royal Bank of Canada adjusted its target price upwards from $47.00 to $48.00, assigning a “sector perform” rating. Additionally, Citigroup and Cfra Research have both upgraded their ratings to “hold” in recent reports.
Overall, the consensus among analysts indicates a balanced perspective on Magna International’s stock, with three analysts rating it as a “buy,” fifteen issuing a “hold” rating, and one recommending a “sell.” According to data from MarketBeat.com, the average rating for Magna International is “hold,” with a mean price target of $48.57.
Quarterly Performance Exceeds Expectations
Magna International recently announced its quarterly earnings on October 31, 2023. The company reported earnings per share (EPS) of $1.33, surpassing the consensus estimate of $1.24 by $0.09. Revenue for the quarter reached $10.50 billion, exceeding analysts’ expectations of $10.03 billion. The firm’s revenue represents a year-over-year increase of 1.8%, while it recorded a net margin of 2.91% and a return on equity of 11.89%.
Looking ahead, Magna International has provided guidance for its fiscal year 2025, with analysts projecting an EPS of $5.87 for the current fiscal year.
Institutional Investment Activity
Recent activity among institutional investors has also influenced Magna International’s stock dynamics. Bank of New York Mellon Corp increased its stake in the company by 5.5% during the first quarter, now owning 252,500 shares valued at approximately $8.58 million after acquiring an additional 13,220 shares. ARK Investment Management LLC has also entered the fray, purchasing a new stake worth around $5.48 million.
Furthermore, ARGA Investment Management LP boosted its holdings by 17.0%, bringing its total to 2,997,857 shares, valued at approximately $101.89 million. Quantbot Technologies LP made a notable increase as well, raising its position by 3,849.3% to own 165,908 shares, worth around $5.64 million.
Currently, hedge funds and institutional investors collectively hold approximately 67.49% of Magna International’s stock, reflecting significant investor interest in the company.
Magna International Inc. is a prominent player in the automotive sector, designing, engineering, and manufacturing a diverse range of components and systems for vehicle manufacturers worldwide. The company operates across four segments: Body Exteriors & Structures, Power & Vision, Seating Systems, and Complete Vehicles. As it navigates the evolving automotive landscape, Magna continues to attract attention from both analysts and institutional investors alike.
