Magna International Inc. to Issue Quarterly Dividend of $0.48 (NYSE:MGA)

Magna International Inc. (NYSE:MGA) (TSE:MG) declared a quarterly dividend on Friday, August 2nd, Zacks reports. Shareholders of record on Friday, August 16th will be paid a dividend of 0.475 per share on Friday, August 30th. This represents a $1.90 annualized dividend and a dividend yield of 4.70%. The ex-dividend date of this dividend is Friday, August 16th.

Magna International has raised its dividend by an average of 4.8% per year over the last three years. Magna International has a dividend payout ratio of 29.1% meaning its dividend is sufficiently covered by earnings. Research analysts expect Magna International to earn $6.87 per share next year, which means the company should continue to be able to cover its $1.90 annual dividend with an expected future payout ratio of 27.7%.

Magna International Stock Performance

Shares of MGA stock traded down $2.58 during midday trading on Friday, hitting $40.43. The company had a trading volume of 3,694,438 shares, compared to its average volume of 1,528,292. The company’s 50 day simple moving average is $43.40 and its 200 day simple moving average is $49.21. Magna International has a 52-week low of $40.11 and a 52-week high of $65.27. The stock has a market cap of $11.62 billion, a price-to-earnings ratio of 11.49, a PEG ratio of 0.59 and a beta of 1.59. The company has a debt-to-equity ratio of 0.38, a current ratio of 1.09 and a quick ratio of 0.76.

Magna International (NYSE:MGA) (TSE:MG) last announced its earnings results on Friday, August 2nd. The company reported $1.35 earnings per share for the quarter, missing the consensus estimate of $1.46 by ($0.11). Magna International had a net margin of 2.35% and a return on equity of 12.96%. The company had revenue of $10.96 billion during the quarter, compared to analysts’ expectations of $11.01 billion. During the same quarter last year, the business posted $1.50 earnings per share. The company’s revenue for the quarter was down .2% compared to the same quarter last year. Research analysts anticipate that Magna International will post 5.68 earnings per share for the current fiscal year.

Analyst Ratings Changes

Several research analysts have weighed in on the company. Citigroup lowered their target price on Magna International from $52.00 to $47.00 and set a “neutral” rating on the stock in a research note on Friday, July 12th. Morgan Stanley reduced their price target on Magna International from $65.00 to $60.00 and set an “overweight” rating for the company in a report on Friday, May 10th. The Goldman Sachs Group reduced their price target on Magna International from $56.00 to $48.00 and set a “neutral” rating for the company in a report on Monday, May 6th. BMO Capital Markets reduced their price target on Magna International from $60.00 to $55.00 and set an “outperform” rating for the company in a report on Monday, July 22nd. Finally, Raymond James reduced their price target on Magna International from $60.00 to $57.00 and set a “market perform” rating for the company in a report on Monday, May 6th. Twelve analysts have rated the stock with a hold rating and seven have given a buy rating to the company. Based on data from MarketBeat.com, Magna International currently has a consensus rating of “Hold” and an average target price of $53.82.

Magna International Company Profile

Magna International Inc designs, engineers, and manufactures components, assemblies, systems, subsystems, and modules for original equipment manufacturers of vehicles and light trucks worldwide. It operates through four segments: Body Exteriors & Structures, Power & Vision, Seating Systems, and Complete Vehicles.