A better buy-in window may exist right now for Magna International Inc. (MGA)

Magna International Inc. (NYSE: MGA) stock jumped 1.45% on Thursday to $56.52 against a previous-day closing price of $55.71. With 1.47 million shares changed hands, the volume of the stock remained heavier than its average volume of 1.13 million shares. During the session, the Auto Parts company that operates in wider Consumer Cyclical sector, reached to the highest price of $56.53 whereas the lowest price it dropped to was $54.69. The 52-week range on MGA shows that it touched its highest point at $68.92 and its lowest point at $45.58 during that stretch. It currently has a 1-year price target of $67.00. With its current market cap of 16.29 billion, MGA has annualized dividend of $1.84 while the current yield stands at 3.26%. Beta for the stock currently stands at 1.66.

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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 -2.05%, but this was down by -0.42% over a month. Three-month performance surged to 0.53% while six-month performance rose 11.57%. The stock lost -0.89% in the past year, while it has gained 0.61% so far this year. A look at the trailing 12-month EPS for MGA yields 3.25 with Next year EPS estimates of 6.60. For the next quarter, that number is 1.34. This implies an EPS growth rate of -59.30% for this year and 23.80% for next year. EPS is expected to grow by 27.35% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of -18.90%.

Float and Shares Shorts:

At present, 286.20 million MGA shares are outstanding with a float of 268.83 million shares on hand for trading. On Aug 30, 2023, short shares totaled 4.6 million, which was 1.61% higher than short shares on Jul 30, 2023. 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.

Institutional Ownership:

Through their ownership of 69.67% of MGA’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 37.95% of MGA, in contrast to 28.51% held by mutual funds. Shares owned by individuals account for –. As the largest shareholder in MGA with 3.00% of the stake, Managed Account Advisors LLC holds 8,584,577 shares worth 8,584,577. A second-largest stockholder of MGA, Beutel, Goodman & Co. Ltd., holds 8,278,638 shares, controlling over 2.89% of the firm’s shares. Hotchkis & Wiley Capital Manageme is the third largest shareholder in MGA, holding 7,980,744 shares or 2.79% stake. With a 1.35% stake in MGA, the Vanguard Windsor Funds – Vanguard is the largest stakeholder. A total of 3,850,532 shares are owned by the mutual fund manager. The Principal Funds, Inc. – Equity In, which owns about 1.30% of MGA stock, is the second-largest Mutual Fund holder. It holds 3,712,920 shares valued at 238.85 million. Vanguard Total International Stoc holds 1.24% of the stake in MGA, owning 3,558,866 shares worth 228.94 million.

An Overview of Recent Financials:

Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Jun 29, 2023, MGA reported revenue of $9.36B and operating income of $333.00M. The EBITDA in the recently reported quarter was $718.00M and diluted EPS was -$0.54.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for MGA since 0 analysts follow the stock currently. 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 $80.00 and a low target of $56.00, the average target price over the next 12 months is $66.24. Based on these targets, MGA could surge 41.54% to reach the target high and fall by -0.92% to reach the target low. Reaching the average price target will result in a growth of 17.2% 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.

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