On January 31, 2025, Richard Pzena (Trades, Portfolio) executed a significant transaction involving Magna International Inc. The firm added 1,967,458 shares to its holdings at a price of $39.67 per share, bringing the total to 28,289,811 shares. This move underscores a strategic decision to capitalize on the perceived undervaluation of Magna International, a leading player in the automotive supply industry. The transaction reflects Pzena's investment philosophy of acquiring undervalued shares of fundamentally strong businesses.

Richard Pzena (Trades, Portfolio): A Profile of Investment Acumen

Richard Pzena (Trades, Portfolio) is the founder and Co-Chief Investment Officer of Pzena Investment Management, LLC, a firm established in 1995. With a background that includes a BS summa cum laude from the Wharton School and an MBA from the University of Pennsylvania, Pzena has built a reputation for a disciplined investment approach. The firm's philosophy involves ranking companies based on their share price relative to long-term earnings power, focusing on purchasing shares of good businesses at low prices. This approach often involves assessing whether price drops are temporary or permanent, allowing the firm to make informed investment decisions.

Magna International Inc.: A Global Automotive Leader

Magna International Inc., headquartered in Aurora, Ontario, is a prominent automotive supplier with a diverse product range and a strong global presence. The company boasts a market capitalization of $10.98 billion and is considered significantly undervalued according to GuruFocus metrics. Magna's product offerings include exteriors, interiors, seating, roof systems, and more, with a substantial portion of its revenue derived from North America, Europe, and Asia. The company's top customers include automotive giants like GM, Mercedes, and BMW, highlighting its integral role in the automotive supply chain.

Transaction Details and Portfolio Impact

The recent transaction increased Pzena's position in Magna International to 10% of the firm's holdings, representing 3.61% of the portfolio. This strategic move had a 0.25% impact on the portfolio, indicating a calculated effort to leverage the stock's undervaluation. The decision aligns with Pzena's investment philosophy, focusing on long-term value creation through strategic acquisitions.

Financial Metrics and Valuation Insights

Magna International's current stock price stands at $38.08, with a [GF Value](https://www.gurufocus.com/term/gf-value/MGA) of $62.83, suggesting significant undervaluation. The stock has a [GF Score](https://www.gurufocus.com/term/gf-score/MGA) of 79/100, indicating likely average performance. The company's [Financial Strength](https://www.gurufocus.com/term/rank-balancesheet/MGA) is ranked 6/10, while its [Profitability Rank](https://www.gurufocus.com/term/rank-profitability/MGA) is 7/10. Despite recent price declines, Magna's revenue growth over the past three years has been robust at 12.90%, reflecting its strong market position and operational efficiency.

Market Performance and Analysis

Magna International has experienced a year-to-date price change of -7.68% and a price gain of -4.01% since the transaction. Despite these declines, the company's revenue growth remains strong, supported by a three-year EBITDA growth of 14.30% and earnings growth of 13.30%. The firm's [interest coverage](https://www.gurufocus.com/term/interest-coverage/MGA) ratio of 6.81 and [Altman Z score](https://www.gurufocus.com/term/zscore/MGA) of 2.30 further underscore its financial stability.

Other Notable Investors in Magna International

In addition to Richard Pzena (Trades, Portfolio), other prominent investors in Magna International include HOTCHKIS & WILEY, Bill Nygren (Trades, Portfolio), and Joel Greenblatt (Trades, Portfolio). Among these investors, Pzena Investment Management LLC holds the largest share percentage, reflecting the firm's confidence in Magna's long-term potential.

Conclusion: Strategic Implications of the Transaction

The acquisition of additional shares in Magna International by Richard Pzena (Trades, Portfolio) signifies a strategic move to capitalize on the stock's undervaluation. This transaction not only enhances the firm's portfolio but also aligns with its investment philosophy of identifying and investing in undervalued, high-quality businesses. As Magna continues to navigate market challenges, its strong financial metrics and global presence position it well for future growth.

This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.