Sometimes, even the biggest companies need to tidy up. Magna International Inc. (MGA), the auto parts behemoth, announced on Thursday that it's selling off its Lighting and Rooftop Systems businesses. Think of it as a strategic garage sale—part of a broader effort to optimize its portfolio. The company didn't put a price tag on the deals, but it did lay out the plan.
The sale is happening through three separate transactions. One global investment firm is snapping up the Lighting operations in North America, South America, and China. Another firm is taking the European Lighting and Rooftop Systems businesses off Magna's hands. Together, these units rang up about $1.1 billion in global sales last year, with Lighting accounting for roughly $1 billion of that and Rooftop Systems making up the remaining $100 million.
Magna expects to wrap up the sales in the second half of 2026, pending the usual regulatory nods and closing conditions. Importantly, the company says getting rid of these businesses won't mess with its previously issued 2026 adjusted earnings per share outlook. So, it's a cleanup that's not expected to dent the bottom-line forecast.
"Today's announcement underscores our commitment to actively managing our portfolio in line with our guiding principles," said CEO Swamy Kotagiri. He added that the company will stay focused on long-term growth, margins, and returns while making sure the transition is smooth for everyone involved.
What's the Stock Doing?
Alright, so the company is making moves. What does the market think? Let's look at the charts. As of this writing, Magna shares were trading around $56.84, down about 0.72% on the day. In the grand scheme of things, that's a pretty muted reaction to a portfolio shuffle of this size.
Technically, the picture is a bit mixed, which might explain the calm. The stock is trading 3.4% above its 20-day simple moving average (SMA) and 3.8% above its 100-day SMA. That suggests the near-term and intermediate-term uptrends are still, broadly, holding up. But it's also trading 1% below its 50-day SMA, hinting that there's some overhead supply—traders looking to sell—around the mid-$57 area that's capping the rally for now.
A key momentum gauge, the Moving Average Convergence Divergence (MACD), shows the MACD line at -0.7353 versus a signal line at -0.9998. For the non-chartists, that essentially means downside momentum has been easing up recently.
Traders are watching two key levels:
Key Resistance: $57.50 — a level where recent rallies have tended to stall.
Key Support: $51.00 — an area where buyers have previously stepped in.
What Are the Analysts Saying?
Magna is scheduled to give its next financial update on May 1, 2026. The consensus estimates are looking for earnings per share (EPS) of $1.03, up from 78 cents, on revenue of $10.18 billion, up from $10.07 billion. The stock trades at a P/E ratio of 19.6x, which generally signals a fair valuation—not screaming cheap, but not overly expensive either.
The analyst community seems to be in a "wait and see" mode. The stock carries a consensus Hold rating with an average price target of $58.67, which is only a modest premium to the current price. Recent analyst actions have been a mix of small target adjustments:
Wells Fargo: Equal-Weight (Lowers Target to $59.00) on March 31.
Barclays: Equal-Weight (Lowers Target to $66.00) on March 30.
Citigroup: Neutral (Raises Target to $58.00) on March 23.
How Does Magna Stack Up?
Beyond the single-stock view, how does Magna look compared to the broader market? A review of its profile reveals a value-plus-momentum story. The stock shows especially strong scores in Value and Momentum versus the market. Its Growth and Quality metrics, however, screen more as neutral—solid, but not top-tier among its peers.
The takeaway from this profile? If Magna's stock can convincingly break through and hold above that $57.50 resistance zone, the underlying scorecard suggests the longer-term positive trend could have more room to run. For now, it's a company doing some strategic housekeeping, with the market taking a measured view of the proceedings.
