Should I Buy MGA? MGA 2026 Analysis

Should You Buy Magna International Inc (MGA) Today? Analysis, Price Targets, and 2026 Outlook.

Conclusion

Hold

Latest Price

54.020

1 Day change

2.60%

52 Week Range

57.550

Analysis Updated At

2026/02/05

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Not a good buy right now for an impatient entry: the setup is neutral-to-slightly bearish technically, profitability trends are weak, and there’s a near-term earnings catalyst with elevated implied volatility.
Upside exists (Street price targets $55–$58 vs. $52.86), but the stock is sitting near the pivot with no proprietary “strong buy” signal to justify chasing today.
Intellectia Proprietary Trading Signals
- AI Stock Picker: No signal on given stock today.
- SwingMax: No signal on given stock recently.
If you must act immediately: this is more of a wait/hold than an aggressive buy; a cleaner buy case would be a convincing reclaim of ~$53.72 (R1) or a pullback closer to ~$51.20 (S1).

Technical Analysis

Price/Trend: Trading around $52.86, very close to the pivot $52.46, indicating an indecisive/mean-reversion zone rather than a strong trend.
Momentum (MACD): Histogram -0.295 (below 0) but negatively contracting → bearish momentum is easing, yet not flipped bullish.
RSI(6): 48.0 (neutral) → no oversold bounce signal, no overbought risk.
Moving averages: Converging → consolidation; market is waiting for a catalyst.
Key levels:
- Resistance: $53.72 (R1) then $54.50 (R2)
- Support: $51.20 (S1) then $50.42 (S2)
Pattern-based odds (provided): skewed bullish in the near-term (reported 70% chance of gains across day/week/month), but this conflicts with the currently neutral technical read—suggesting any upside is likely event-driven (earnings) rather than trend-driven today.

Options Data

Bullish

Open Interest Put-Call Ratio

Bullish

Option Volume Put-Call Ratio

Positioning/Sentiment: Very call-heavy (OI P/C 0.23; Volume P/C 0.05) → traders are leaning bullish/speculative on upside.
Activity: Today’s options volume 758 with ~195% vs 30-day average → notable spike in attention.
Volatility: 30D IV ~41.95 vs historical vol ~24.7; IV percentile ~84.9 → options are pricing a larger move (consistent with upcoming earnings), and premiums are elevated.
Takeaway: Options flow is bullish, but elevated IV suggests the market expects a meaningful move (good or bad), increasing event risk around earnings.

Technical Summary

Sell

Buy

Positive Catalysts

- Analysts have recently raised price targets (most recently to $57–$58), implying moderate upside from current levels.
- Options market positioning is strongly bullish (call-dominant open interest and volume).
- Earnings upcoming (2026-02-13 pre-market) could be a catalyst if margins/EPS surprise positively.
- Revenue was still growing YoY in the latest reported quarter (2025/Q3 +1.77%).

Neutral/Negative Catalysts

- Latest quarter profitability weakened sharply: Net income -36.98% YoY, EPS -35.71% YoY (2025/Q3), raising concern that revenue growth isn’t translating into earnings growth.
- Analyst commentary highlights tariff-driven cost pressure and potential downside to production volumes (key driver for supplier earnings).
- Congress trading (last 90 days): 4 sells, 0 buys → influential-figure flow is net negative.
- Earnings on 2026-02-13 with high IV → the stock may gap; not ideal for an impatient “buy now” without a clear edge.
- No supportive news flow in the last week (no fresh positive catalyst to break the consolidation).

Financial Performance

Latest quarter: 2025/Q3
- Revenue: $10.462B, +1.77% YoY (modest top-line growth)
- Net Income: $305M, -36.98% YoY (significant decline)
- EPS: $1.08, -35.71% YoY (material compression)
- Gross Margin: 10.26%, +1.38% YoY (slightly better, but not enough to prevent earnings decline)
Overall: Growth is present on revenue, but the dominant trend is earnings deterioration, which weakens the “buy right now” case ahead of earnings.

Growth

Profitability

Efficiency

Analyst Ratings and Price Target Trends

Recent Street stance: predominantly Neutral / Equal Weight / In Line / Sector Perform (not a strong conviction buy).
Price targets have been revised upward over recent months:
- Scotiabank: PT $57 (from $52), Sector Perform
- Barclays: PT $58 (from $52), Equal Weight
- Citi: PT $55 (from $49), Neutral
- Evercore ISI: PT $52 (from $47), In Line
Wall Street pros: improving targets + expectation that cost pressures may be passed through; production rates described as healthy by Barclays.
Wall Street cons: tariff-related uncertainty and potential volume downside; ratings remain mostly non-bullish, suggesting upside is viewed as limited/moderate rather than high-conviction.

11 Analyst Rating

Wall Street analysts forecast MGA stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for MGA is 52.8 USD with a low forecast of 48 USD and a high forecast of 58 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.

3 Buy

8 Hold

0 Sell

Moderate Buy

Current: 52.650

Low

Averages

52.8

High

Current: 52.650

Low

Averages

52.8

High

Scotiabank

Jonathan Goldman

Sector Perform

maintain

$52 -> $57

AI Analysis

2026-01-27

Reason

Scotiabank

Jonathan Goldman

Price Target

$52 -> $57

AI Analysis

2026-01-27

maintain

Sector Perform

Reason

Scotiabank analyst Jonathan Goldman raised the firm's price target on Magna to $57 from $52 and keeps a Sector Perform rating on the shares. The firm notes that tariffs have increased vehicle production costs, which could soon start getting passed on to consumers or suppliers in 2026, the analyst tells investors. Scotiabank sees downside to production volumes, which the firm notes is the main determining factor of supplier earnings.

Barclays

Dan Levy

Equal Weight

maintain

$52 -> $58

2026-01-23

Reason

Barclays

Dan Levy

Price Target

$52 -> $58

2026-01-23

maintain

Equal Weight

Reason

Barclays analyst Dan Levy raised the firm's price target on Magna to $58 from $52 and keeps an Equal Weight rating on the shares. The firm adjusted targets in the autos and mobility group as part of a Q4 preview. Barclays continue to prefer the car markers, saying they are benefiting from "healthy" production rates and reduced electric vehicle losses.

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MGA Should I Buy

MGA Should I Buy

Should You Buy Magna International Inc (MGA) Today? Analysis, Price Targets, and 2026 Outlook.

Technical Analysis

Options Data

Technical Summary

Positive Catalysts

Neutral/Negative Catalysts

Financial Performance

Growth

Profitability

Efficiency

Analyst Ratings and Price Target Trends

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