Magna International Inc. [MGA] Revenue clocked in at $31.47 billion, up 11.60% YTD: What’s Next?

Magna International Inc. [NYSE: MGA] stock went on an upward path that rose over 0.54% on Wednesday, amounting to a one-week price increase of more than 1.88%. The company report on November 11, 2020 that TSX Accepts Notice of Intention to Make Normal Course Issuer Bid.

Magna International Inc. (TSX: MG, NYSE: MGA) today announced that the Toronto Stock Exchange (“TSX”) had accepted its Notice of Intention to Make a Normal Course Issuer Bid (the “Notice”). Pursuant to the Notice, Magna may purchase up to 29,623,300 Magna Common Shares (the “Bid”), representing approximately 10% of its public float. As at November 2, 2020, Magna had 299,263,809 issued and outstanding Common Shares, including a public float of 296,233,190 Common Shares.

The primary purposes of the Bid are purchases for cancellation, as well as purchases to fund Magna’s stock-based compensation awards or programs and/or Magna’s obligations to its deferred profit sharing plans. Magna may purchase its Common Shares, from time to time, if it believes that the market price of its Common Shares is attractive and that the purchase would be an appropriate use of corporate funds and in the best interests of the Corporation.

Over the last 12 months, MGA stock rose by 10.21%. The one-year Magna International Inc. stock forecast points to a potential upside of 8.83. The average equity rating for MGA stock is currently 2.20, trading closer to a bullish pattern in the stock market.

The market cap for the stock reached $17.88 billion, with 298.70 million shares outstanding and 276.44 million shares in the current float. Compared to the average trading volume of 944.29K shares, MGA stock reached a trading volume of 2955290 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Guru’s Opinion on Magna International Inc. [MGA]:

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for MGA shares is $67.13 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on MGA stock is a recommendation set at 2.20. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.

BMO Capital Markets have made an estimate for Magna International Inc. shares, keeping their opinion on the stock as Outperform, with their previous recommendation back on November 09, 2020. The new note on the price target was released on November 09, 2020, representing the official price target for Magna International Inc. stock. Previously, the target price had yet another drop from $55 to $50, while Credit Suisse kept a Outperform rating on MGA stock.

The Average True Range (ATR) for Magna International Inc. is set at 1.87, with the Price to Sales ratio for MGA stock in the period of the last 12 months amounting to 0.57. The Price to Book ratio for the last quarter was 1.79, with the Price to Cash per share for the same quarter was set at 5.13. Price to Free Cash Flow for MGA in the course of the last twelve months was 15.50 with Quick ratio for the last quarter at 0.90.

MGA Stock Performance Analysis:

Magna International Inc. [MGA] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 1.88. With this latest performance, MGA shares gained by 12.50% in over the last four-week period, additionally plugging by 55.73% over the last 6 months – not to mention a rise of 10.21% in the past year of trading.

Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for MGA stock in for the last two-week period is set at 71.05, with the RSI for the last a single of trading hit 71.20, and the three-weeks RSI is set at 66.69 for Magna International Inc. [MGA]. The present Moving Average for the last 50 days of trading for this stock 51.73, while it was recorded at 60.14 for the last single week of trading, and 45.24 for the last 200 days.

Insight into Magna International Inc. Fundamentals:

Operating Margin for any stock indicates how profitable investing would be, and Magna International Inc. [MGA] shares currently have an operating margin of +6.01 and a Gross Margin at +10.31. Magna International Inc.’s Net Margin is presently recorded at +4.47.

Return on Total Capital for MGA is now 14.94, given the latest momentum, and Return on Invested Capital for the company is 12.03. Return on Equity for this stock inclined to 16.34, with Return on Assets sitting at 6.80. When it comes to the capital structure of this company, Magna International Inc. [MGA] has a Total Debt to Total Equity ratio set at 46.11. Additionally, MGA Total Debt to Total Capital is recorded at 31.56, with Total Debt to Total Assets ending up at 19.36. Long-Term Debt to Equity for the company is recorded at 43.05, with the Long-Term Debt to Total Capital now at 29.47.

Reflecting on the efficiency of the workforce at the company, Magna International Inc. [MGA] managed to generate an average of $14,194 per employee. Receivables Turnover for the company is 6.27 with a Total Asset Turnover recorded at a value of 1.52.Magna International Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 0.90 and a Current Ratio set at 1.30.

MGA Stock EPS

With the latest financial reports released by the company, Magna International Inc. posted 1.41/share EPS, while the average EPS was predicted by analysts to be reported at 1.33/share. When compared, the two values demonstrate that the company surpassed the estimates by a Surprise Factor of 6.00%. The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for MGA. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Magna International Inc. go to 8.73%.

Magna International Inc. [MGA] Insider Position Details

There are presently around $11,151 million, or 72.20% of MGA stock, in the hands of institutional investors. The top three institutional holders of MGA stocks are: PRICE T ROWE ASSOCIATES INC /MD/ with ownership of 22,956,280, which is approximately 9.578% of the company’s market cap and around 1.60% of the total institutional ownership; BEUTEL, GOODMAN & CO LTD., holding 11,974,197 shares of the stock with an approximate value of $732.82 million in MGA stocks shares; and ROYAL BANK OF CANADA, currently with $711.11 million in MGA stock with ownership of nearly 4.173% of the company’s market capitalization.

Positions in Magna International Inc. stocks held by institutional investors increased at the end of November and at the time of the November reporting period, where 169 institutional holders increased their position in Magna International Inc. [NYSE:MGA] by around 16,035,218 shares. Additionally, 176 investors decreased positions by around 12,559,336 shares, while 53 investors held positions by with 153,617,005 shares. The mentioned changes placed institutional holdings at 182,211,559 shares, according to the latest SEC report filing. MGA stock had 49 new institutional investments in for a total of 2,146,774 shares, while 37 institutional investors sold positions of 1,500,542 shares during the same period.

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