Magna International Inc. [NYSE: MGA] surged by $5.99 during the normal trading session on Wednesday and reaching a high of $74.60 during the day while it closed the day at $72.35. The company report on December 23, 2020 that LG and Magna Enter Joint Venture Agreement to Expand in Powertrain Electrification Market.
Combines Strengths of Two Major Players in the Electric Powertrain Space to Accelerate Time to Market and Capitalize on Electrification Emergence.
LG Electronics (“LG”) and Magna International Inc. (“Magna”) announced a joint venture (JV) to manufacture e-motors, inverters and on board chargers and, for certain automakers, related e-drive systems to support the growing global shift toward vehicle electrification. The new company, tentatively called LG Magna e-Powertrain, marries Magna’s strength in electric powertrain systems and world class automotive manufacturing with LG’s expertise in component development for e-motors and inverters, accelerating both partners’ growth in the electric powertrain market.
Magna International Inc. stock has also gained 12.22% of its value over the past 7 days. However, MGA stock has inclined by 62.58% in the 3 months of the year. Over the past six months meanwhile, it has gained 65.41% and gained 31.93% year-on date.
The market cap for MGA stock reached $22.04 billion, with 298.70 million shares outstanding and 276.96 million shares in the current float. Compared to the average trading volume of 978.71K shares, MGA reached a trading volume of 5842539 in the most recent trading day, which is why market watchdogs consider the stock to be active.
Here’s what leading stock market gurus have to say about 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 $69.18 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 2.07, with the Price to Sales ratio for MGA stock in the period of the last 12 months amounting to 0.70. The Price to Book ratio for the last quarter was 2.12, with the Price to Cash per share for the same quarter was set at 4.92. Price to Free Cash Flow for MGA in the course of the last twelve months was 19.10 with Quick ratio for the last quarter at 0.90.
MGA stock trade performance evaluation
Magna International Inc. [MGA] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 12.22. With this latest performance, MGA shares gained by 18.33% in over the last four-week period, additionally plugging by 65.41% over the last 6 months – not to mention a rise of 30.76% 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 77.16, with the RSI for the last a single of trading hit 82.44, and the three-weeks RSI is set at 73.58 for Magna International Inc. [MGA]. The present Moving Average for the last 50 days of trading for this stock 59.10, while it was recorded at 66.22 for the last single week of trading, and 47.03 for the last 200 days.
Magna International Inc. [MGA]: An insightful look at the core 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.
Earnings per share (EPS) analysis for Magna International Inc. [MGA] stock
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 9.61%.
Magna International Inc. [MGA]: Insider Ownership positions
There are presently around $12,091 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 $794.61 million in MGA stocks shares; and ROYAL BANK OF CANADA, currently with $771.06 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 167 institutional holders increased their position in Magna International Inc. [NYSE:MGA] by around 15,971,777 shares. Additionally, 177 investors decreased positions by around 12,569,851 shares, while 54 investors held positions by with 153,656,687 shares. The mentioned changes placed institutional holdings at 182,198,315 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 38 institutional investors sold positions of 1,500,872 shares during the same period.