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Magna Completes a Couple of Common Share Repurchase Programs

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Magna International Inc. (MGA - Free Report) has concluded the second program of its two share repurchase initiatives, announced on Nov 21, 2017. The two programs followed two separate issuer bid exemption orders issued by the Ontario Securities Commission.

Magna planned to cancel the common shares purchased through these two programs.

On completing the first program announced on Dec 6, the company repurchased a total of 1,472,000 common shares for an aggregate price of $101.2 million.

Magna International, Inc. Price and Consensus

In the second program announced on Dec 29, it bought back 395,100 common shares for an approximate price of CAD $27.5 million. Shares acquired from both the programs have been canceled.

These buyback programs are part of Magna’s normal course issuer bid for up to 35,800,000 common shares.

Prior to this, in the third quarter of 2017, Magna repurchased shares worth 8.7 million for $422 million. Further, it paid a dividend of $99 million.

The company regularly undertakes such capital deployment strategies, focusing on improving shareholder value and also to increase share prices.

Price Performance

Shares of Magna have gained 5.3% in the last three months, outperforming the 0.4% gain of the industry it belongs to.



Zacks Rank & Key Picks

Magna carries a Zacks Rank #3 (Hold). A few better-ranked stocks in the auto space are Toyota Motor Corporation (TM - Free Report) , Oshkosh Corporation (OSK - Free Report) and Allison Transmission Holdings, Inc. (ALSN - Free Report) . While Toyota and Oshkosh sport a Zacks Rank #1 (Strong Buy), Allison Transmission carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Toyota has an expected long-term growth rate of 6.2%. The stock has seen the Zacks Consensus Estimate for current fiscal earnings being raised 5.6% over the last 60 days.

Oshkosh has an expected long-term growth rate of 16.5%. In the last three months, shares of the company have gained 9%.

Allison Transmission has an expected long-term growth rate of 10%. In the last three months, shares of the company have rallied 17.4%.

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