Magna International stock hits 52-week low at $34.28

Magna International Inc (TSX:MG). (MGA) stock has reached a new 52-week low, touching down at $34.28, with technical indicators from InvestingPro suggesting the stock is in oversold territory. The company maintains a healthy 5.49% dividend yield and trades at an attractive Price-to-Book ratio of 0.88. This latest price movement reflects a significant downturn for the automotive supplier, as investors respond to market pressures and company-specific challenges. Over the past year, Magna International (NYSE:MGA) has seen its stock value decrease by 34.66%, indicating a tough period for the company amidst a challenging economic landscape for the auto industry. According to InvestingPro’s Fair Value analysis, the stock appears undervalued at current levels, with the company maintaining a GOOD overall financial health score. The 52-week low serves as a critical marker for the company, as it navigates through the headwinds of supply chain disruptions, shifting consumer demands, and the global transition to electric vehicles. Despite these challenges, the company trades at a modest P/E ratio of 10.38 and has maintained dividend payments for 34 consecutive years. Discover more insights about MGA and 1,400+ other stocks with InvestingPro’s comprehensive research reports.

In other recent news, Magna International Inc . has filed its annual report with the Securities and Exchange Commission, detailing its financial performance for the year ending December 31, 2024. This report, verified by Deloitte LLP, includes audited financial statements and reflects the company’s compliance with regulatory standards. Meanwhile, analysts have been adjusting their price targets for Magna. JPMorgan reduced its price target to $53, maintaining an Overweight rating due to Magna’s competitive valuation and strong cash generation prospects. Raymond (NSE:RYMD) James also lowered its target to $50, citing a cautious outlook due to potential trade and tariff impacts, while maintaining a Market Perform rating.

Scotiabank (TSX:BNS) adjusted its price target to $49, keeping a Sector Perform rating, and noted Magna’s proactive cost-cutting measures and share repurchase activities. BMO Capital Markets, however, increased its price target to $55, retaining an Outperform rating, highlighting potential gains from cost reductions and favorable contract launches. These developments come as Magna continues to navigate a challenging automotive sector, with analysts offering mixed views on its future performance.

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