Magna International Inc. (NYSE:MGA) to Issue $0.50 Quarterly Dividend

Magna International Inc. (NYSE:MGA) (TSE:MG) declared a quarterly dividend on Friday, May 1st. Investors of record on Friday, May 15th will be given a dividend of 0.495 per share on Friday, May 29th. This represents a c) annualized dividend and a yield of 3.3%. The ex-dividend date is Friday, May 15th.

Magna International has decreased its dividend by an average of 0.1%per year over the last three years and has raised its dividend annually for the last 6 consecutive years. Magna International has a dividend payout ratio of 34.4% meaning its dividend is sufficiently covered by earnings. Research analysts expect Magna International to earn $7.96 per share next year, which means the company should continue to be able to cover its $1.98 annual dividend with an expected future payout ratio of 24.9%.

Magna International Stock Down 4.4%

Magna International stock traded down $2.83 during midday trading on Friday, hitting $60.84. 4,090,099 shares of the stock were exchanged, compared to its average volume of 1,611,262. Magna International has a 52-week low of $32.54 and a 52-week high of $69.94. The stock has a market capitalization of $16.69 billion, a price-to-earnings ratio of 20.62 and a beta of 1.44. The business’s 50-day moving average price is $58.59 and its 200-day moving average price is $54.25. The company has a quick ratio of 0.87, a current ratio of 1.25 and a debt-to-equity ratio of 0.36.

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

Institutional Investors Weigh In On Magna International

Several institutional investors have recently added to or reduced their stakes in the company. ARGA Investment Management LP raised its holdings in Magna International by 33.2% in the 3rd quarter. ARGA Investment Management LP now owns 4,148,133 shares of the company’s stock worth $196,557,000 after purchasing an additional 1,033,747 shares in the last quarter. Hillsdale Investment Management Inc. bought a new position in Magna International in the 3rd quarter worth $33,593,000. AGF Management Ltd. bought a new position in Magna International in the 3rd quarter worth $14,191,000. Achmea Investment Management B.V. bought a new position in Magna International in the 3rd quarter worth $8,606,000. Finally, Geode Capital Management LLC raised its holdings in Magna International by 6.8% in the 4th quarter. Geode Capital Management LLC now owns 2,426,843 shares of the company’s stock worth $128,774,000 after purchasing an additional 154,710 shares in the last quarter. Hedge funds and other 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.