Magna International Inc. (NYSE: MGA) stock fell -7.21% on Tuesday to $60.74 against a previous-day closing price of $65.46. With 3.45 million shares changed hands, the volume of the stock remained heavier than its average volume of 1.09 million shares. During the session, the Auto Parts company that operates in wider Consumer Cyclical sector, reached to the highest price of $62.97 whereas the lowest price it dropped to was $59.16. The 52-week range on MGA shows that it touched its highest point at $83.68 and its lowest point at $45.58 during that stretch. It currently has a 1-year price target of $71.71. With its current market cap of 17.12 billion, MGA has annualized dividend of $1.80 while the current yield stands at 2.96%. Beta for the stock currently stands at 1.56.
Price Performance and Earnings:
Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of MGA was down-trending over the past week, with a drop of -6.77%, but this was up by 7.41% over a month. Three-month performance surged to 17.51% while six-month performance fell -1.49%. The stock lost -22.42% in the past year, while it has gained 8.12% so far this year. A look at the trailing 12-month EPS for MGA yields 3.23 with Next year EPS estimates of 6.11. For the next quarter, that number is 1.39. This implies an EPS growth rate of 98.40% for this year and 33.59% for next year. EPS is expected to grow by 23.50% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of -0.60%.
Float and Shares Shorts:
At present, 287.90 million MGA shares are outstanding with a float of 285.60 million shares on hand for trading. On Oct 13, 2022, short shares totaled 4.64 million, which was 1.61% higher than short shares on Sep 14, 2022. In addition to Mr. Seetarama Swamy Kotagiri M.Sc. as the firm’s CEO & Director, Mr. Vincent Joseph Galifi B.Com., C.A. serves as its Pres.
Through their ownership of 66.86% of MGA’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 38.27% of MGA, in contrast to 25.88% held by mutual funds. Shares owned by individuals account for –. As the largest shareholder in MGA with 3.01% of the stake, RBC Global Asset Management, Inc. holds 8,602,616 shares worth 8,602,616. A second-largest stockholder of MGA, Beutel, Goodman & Co. Ltd., holds 8,302,998 shares, controlling over 2.91% of the firm’s shares. Jarislowsky, Fraser Ltd. is the third largest shareholder in MGA, holding 8,133,446 shares or 2.85% stake. With a 1.39% stake in MGA, the Principal Investors – Equity Inco is the largest stakeholder. A total of 3,971,881 shares are owned by the mutual fund manager. The Vanguard Windsor Funds – Vanguard, which owns about 1.30% of MGA stock, is the second-largest Mutual Fund holder. It holds 3,725,732 shares valued at 209.31 million. Vanguard Total International Stoc holds 1.24% of the stake in MGA, owning 3,535,888 shares worth 198.65 million.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for MGA since 19 analysts follow the stock currently. There are 10 analysts who recommend BUY ratings, while 1 suggest SELL ratings. Of the remaining analysts, 7 believe that the stock is worth HOLDING, 1 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With MGA analysts setting a high price target of $85.00 and a low target of $51.00, the average target price over the next 12 months is $69.75. Based on these targets, MGA could surge 39.94% to reach the target high and fall by -16.04% to reach the target low. Reaching the average price target will result in a growth of 14.83% from current levels.
EPS: Estimates vs Actual
It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. MGA will report FY 2022 earnings on 02/23/2024. Analysts have provided yearly estimates in a range of $4.69 being high and $3.99 being low. For MGA, this leads to a yearly average estimate of $4.43. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Magna International Inc. surprised analysts by -$0.04 when it reported $1.07 EPS against a consensus estimate of $1.11. The surprise factor in the prior quarter was -$0.12. Based on analyst estimates, the high estimate for the next quarter is $1.51 and the low estimate is $0.78. The average estimate for the next quarter is thus $1.25.