Magna International (NYSE:MGA) Stock Price Down 6.1% – Here’s Why

Magna International Inc. (NYSE:MGA) (TSE:MG) fell 6.1% on Friday . The stock traded as low as $57.48 and last traded at $59.7780. 2,000,397 shares changed hands during mid-day trading, an increase of 6% from the average session volume of 1,890,797 shares. The stock had previously closed at $63.67.

Key Stories Impacting Magna International

Here are the key news stories impacting Magna International this week:

• Positive Sentiment: Adjusted performance beat expectations — Adjusted EPS of $1.38 topped consensus, Adjusted EBIT rose 58% and adjusted margin expanded materially, signaling underlying operational improvement. GlobeNewswire Q1 Release
• Positive Sentiment: Revenue and cash flow resilience — Sales grew ~3% to $10.4B despite a 7% global light-vehicle production decline, and free cash flow turned positive, supporting buybacks and the dividend. GlobeNewswire Q1 Release
• Neutral Sentiment: Full‑year outlook maintained but mixed vs. Street — Magna kept FY 2026 adjusted EPS guidance at $6.25–$7.25 and unchanged margin/free-cash flow ranges; the EPS band’s midpoint is close to consensus but the low end is below Street expectations, leaving interpretation mixed. GlobeNewswire Q1 Release
• Negative Sentiment: GAAP headline loss and one‑time charge weighed on sentiment — Magna reported a net loss attributable to the company (~$12M) driven by a $485M pre‑tax loss on assets held for sale tied to planned disposals in Power & Vision, which flagged near‑term GAAP volatility. GlobeNewswire Q1 Release
• Negative Sentiment: Softer production assumptions — Management nudged down North American and European light‑vehicle production assumptions versus prior guidance, implying potential near‑term volume pressure for auto suppliers like Magna. QuiverQuant Coverage
• Negative Sentiment: Analyst / price‑target pressure — At least one broker note reaffirmed a sector‑perform view with a sub‑current price target, which can add selling pressure after the report. MarketScreener: RBC Note

Analyst Upgrades and Downgrades

Several brokerages have recently weighed in on MGA. Wells Fargo & Company reduced their price target on Magna International from $69.00 to $59.00 and set an “equal weight” rating for the company in a research report on Tuesday, March 31st. Scotiabank upgraded Magna International from a “sector perform” rating to a “sector outperform” rating and boosted their target price for the stock from $69.00 to $72.00 in a research report on Friday, April 24th. Royal Bank Of Canada restated a “sector perform” rating and set a $57.00 target price on shares of Magna International in a research report on Wednesday. Morgan Stanley boosted their target price on Magna International from $54.00 to $65.00 and gave the stock an “equal weight” rating in a research report on Wednesday, February 18th. Finally, Zacks Research upgraded Magna International from a “hold” rating to a “strong-buy” rating in a research report on Thursday, March 5th. One equities research analyst has rated the stock with a Strong Buy rating, six have given a Buy rating, ten have given a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock presently has a consensus rating of “Hold” and an average target price of $62.40.

Magna International Stock Performance

The company has a debt-to-equity ratio of 0.36, a current ratio of 1.25 and a quick ratio of 0.87. The company has a 50 day simple moving average of $58.59 and a 200-day simple moving average of $54.32. The stock has a market cap of $16.69 billion, a P/E ratio of 25.46 and a beta of 1.44.

Magna International (NYSE:MGA) (TSE:MG) last issued its quarterly earnings results on Friday, May 1st. The company reported $1.38 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.01 by $0.37. Magna International had a return on equity of 12.73% and a net margin of 1.99%.The firm had revenue of $10.13 billion during the quarter, compared to analyst estimates of $10.14 billion. During the same quarter in the previous year, the company posted $0.78 earnings per share. The company’s revenue was up 3.1% compared to the same quarter last year. Magna International has set its FY 2026 guidance at 6.250-7.250 EPS. On average, equities analysts expect that Magna International Inc. will post 6.81 earnings per share for the current fiscal year.

Magna International Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, May 29th. Shareholders of record on Friday, May 15th will be paid a dividend of $0.495 per share. The ex-dividend date of this dividend is Friday, May 15th. This represents a $1.98 annualized dividend and a yield of 3.3%. Magna International’s payout ratio is 67.12%.

Institutional Investors Weigh In On Magna International

A number of hedge funds and other institutional investors have recently modified their holdings of MGA. ARGA Investment Management LP lifted its stake in shares of Magna International by 33.2% in the 3rd quarter. ARGA Investment Management LP now owns 4,148,133 shares of the company’s stock valued at $196,557,000 after acquiring an additional 1,033,747 shares during the last quarter. Hillsdale Investment Management Inc. bought a new position in Magna International during the 3rd quarter valued at approximately $33,593,000. AGF Management Ltd. bought a new position in Magna International during the 3rd quarter valued at approximately $14,191,000. Achmea Investment Management B.V. bought a new position in Magna International during the 3rd quarter valued at approximately $8,606,000. Finally, Geode Capital Management LLC raised its position in Magna International by 6.8% during the 4th quarter. Geode Capital Management LLC now owns 2,426,843 shares of the company’s stock valued at $128,774,000 after purchasing an additional 154,710 shares during the last quarter. Institutional investors own 67.49% of the company’s stock.

About Magna International

Magna International Inc is a leading global automotive supplier specializing in the design, engineering, and manufacturing of vehicle systems, assemblies, modules, and components. Headquartered in Aurora, Ontario, the company partners with major original equipment manufacturers (OEMs) to develop technologies and solutions that enhance vehicle performance, safety, comfort, and fuel efficiency. Magna’s broad portfolio encompasses body exteriors and structures, powertrain systems, seating and interiors, roof systems, mirror systems, and advanced driver assistance systems (ADAS).

The company operates more than 350 manufacturing and assembly facilities and over 100 innovation centers across 27 countries, serving customers in North America, Europe, Asia, South America, and Africa.