Magna International, Inc. (NYSE:MGA) on Thursday announced plans to divest its Lighting and Rooftop Systems businesses as part of a portfolio optimization strategy. The companies did not disclose the terms of the deal.

Transaction Details

Magna signed definitive agreements to sell the businesses through three separate transactions. A global investment firm will acquire Lighting operations across North America, South America, and China, while another firm will acquire European Lighting and Rooftop Systems operations.

The businesses generated approximately $1.1 billion in combined global sales in 2025, including about $1 billion from Lighting and $100 million from Rooftop Systems.

Timeline and Outlook

The company expects to close the transactions in the second half of 2026, subject to customary conditions and regulatory approvals.

Magna said the divestitures will not affect its previously issued 2026 adjusted earnings per diluted share outlook.

“Today’s announcement underscores our commitment to actively managing our portfolio in line with our guiding principles,” said CEO Swamy Kotagiri, adding the company will focus on long-term growth, margin, and returns while ensuring a smooth transition for stakeholders.

Technical Analysis

At $56.84, Magna is trading 3.4% above its 20-day simple moving average (SMA), the stock’s average price over the last 20 sessions, which suggests near-term trend support is still holding. It’s also 3.8% above its 100-day SMA, indicating the intermediate uptrend remains intact even with today’s pullback.

Moving average convergence divergence (MACD), a trend/momentum measure, is showing MACD at -0.7353 versus a signal line at -0.9998, which indicates downside momentum has been easing recently. At the same time, the stock is trading 1% below its 50-day SMA, a sign the rally is still working through overhead supply near the mid-$57 area.

  • 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.

Earnings & Analyst Outlook

Magna International is slated to provide its next financial update on May 1, 2026 (estimated).

  • EPS Estimate: $1.03 (Up from 78 cents)
  • Revenue Estimate: $10.18 Billion (Up from $10.07 Billion)
  • Valuation: P/E of 19.6x (Indicates fair valuation)

Analyst Consensus & Recent Actions: The stock carries a Hold Rating with an average price target of $58.67. Recent analyst moves include:

  • Wells Fargo: Equal-Weight (Lowers Target to $59.00) (March 31)
  • Barclays: Equal-Weight (Lowers Target to $66.00) (March 30)
  • Citigroup: Neutral (Raises Target to $58.00) (March 23)

Benzinga Edge Rankings

Below is the Benzinga Edge scorecard for Magna International, highlighting its strengths and weaknesses compared to the broader market:

  • Momentum: Bullish (Score: 83.72) — The stock’s trend has been strong versus the broader market.
  • Quality: Neutral (Score: 52.65) — Fundamentals screen as middle-of-the-pack versus peers.
  • Value: Bullish (Score: 93.21) — The valuation profile screens attractively compared with the market.
  • Growth: Neutral (Score: 67.01) — Growth metrics look solid, but not at the very top of the group.

The Verdict: Magna International’s Benzinga Edge signal reveals a value-plus-momentum profile, with especially strong Value and Momentum scores. If the stock can reclaim and hold above the $57.50 resistance zone, the scorecard suggests the longer-term trend still has room to work.

MGA Stock Price Activity: Magna International shares were down 0.72% at $56.89 at the time of publication on Thursday, according to Benzinga Pro data.

Photo by Grzegorz Czapski via Shutterstock