MGIC Investment Corp. (MTG) Downgraded to Hold at Zacks Investment Research
MGIC Investment Corp. (NYSE:MTG) was downgraded by Zacks Investment Research from a “strong-buy” rating to a “hold” rating in a report released on Tuesday.
According to Zacks, “MGIC Investment’s insurance in force has been witnessing growth owing to the addition of high quality new insurance. Notably, in the second quarter the metric rose 5.2% year-over-year. Per the August operating statistics, the company’s insurance in force grew 4.6% year over year. Going ahead, we expect this metric to rise further. Also, positive credit trends, low expense ratio are tailwinds. Moreover, an improving housing market as well as declining delinquency will boost the company’s earnings in the coming quarters. While, the Zacks Consensus Estimate for 2016 remained stable over the last 60 days, the same has been moving north for 2017 over the same time frame. However, a competitive environment and pressure to maintain capital at required level will reduce the company’s capital flexibility.”
A number of other brokerages have also weighed in on MTG. Deutsche Bank AG reissued a “hold” rating on shares of MGIC Investment Corp. in a report on Saturday, August 6th. FBR & Co raised shares of MGIC Investment Corp. from a “market perform” rating to an “outperform” rating and set a $7.50 target price for the company in a report on Thursday, June 30th. Compass Point raised shares of MGIC Investment Corp. from a “neutral” rating to a “buy” rating and lifted their target price for the stock from $8.50 to $9.00 in a report on Wednesday, July 20th. MKM Partners reaffirmed a “buy” rating on shares of MGIC Investment Corp. in a report on Thursday, August 25th. Finally, BTIG Research reaffirmed a “buy” rating and set a $12.00 target price on shares of MGIC Investment Corp. in a report on Tuesday, July 19th. Four research analysts have rated the stock with a hold rating and seven have given a buy rating to the company. The stock has a consensus rating of “Buy” and an average target price of $10.09.
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Shares of MGIC Investment Corp. (NYSE:MTG) traded down 0.187% during mid-day trading on Tuesday, hitting $8.005. The company had a trading volume of 1,817,812 shares. The firm’s 50-day moving average price is $7.82 and its 200 day moving average price is $7.13. MGIC Investment Corp. has a one year low of $5.36 and a one year high of $10.05. The company has a market capitalization of $2.73 billion, a P/E ratio of 3.302 and a beta of 2.79.
MGIC Investment Corp. (NYSE:MTG) last issued its quarterly earnings results on Tuesday, July 19th. The company reported $0.26 earnings per share for the quarter, beating analysts’ consensus estimates of $0.20 by $0.06. The business earned $263.50 million during the quarter, compared to analyst estimates of $255.01 million. MGIC Investment Corp. had a net margin of 105.16% and a return on equity of 18.40%. During the same quarter last year, the business posted $0.28 earnings per share. Analysts predict that MGIC Investment Corp. will post $0.84 earnings per share for the current fiscal year.
A number of large investors have recently bought and sold shares of the stock. State Street Corp boosted its stake in MGIC Investment Corp. by 1.9% in the first quarter. State Street Corp now owns 12,555,928 shares of the company’s stock valued at $96,303,000 after buying an additional 239,143 shares in the last quarter. Senator Investment Group LP boosted its stake in MGIC Investment Corp. by 14.6% in the second quarter. Senator Investment Group LP now owns 11,000,000 shares of the company’s stock valued at $65,450,000 after buying an additional 1,400,000 shares in the last quarter. Platinum Investment Management Ltd. boosted its stake in MGIC Investment Corp. by 5.3% in the second quarter. Platinum Investment Management Ltd. now owns 10,097,304 shares of the company’s stock valued at $60,078,000 after buying an additional 504,622 shares in the last quarter. BlackRock Institutional Trust Company N.A. boosted its stake in MGIC Investment Corp. by 2.1% in the second quarter. BlackRock Institutional Trust Company N.A. now owns 8,766,393 shares of the company’s stock valued at $52,160,000 after buying an additional 178,180 shares in the last quarter. Finally, Marshall Wace LLP boosted its stake in MGIC Investment Corp. by 13.3% in the second quarter. Marshall Wace LLP now owns 7,302,578 shares of the company’s stock valued at $43,450,000 after buying an additional 858,282 shares in the last quarter. 90.87% of the stock is currently owned by institutional investors and hedge funds.
About MGIC Investment Corp.
MGIC Investment Corporation is a holding company. The Company, through its subsidiaries, provides private mortgage insurance and ancillary services. The Company provides mortgage insurance to lenders throughout the United States and to government sponsored entities to protect against loss from defaults on low down payment residential mortgage loans.
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