MGIC Investment Corp. (MTG) Rating Lowered 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 research note issued to investors 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.”
Several other equities analysts have also recently weighed in on MTG. Deutsche Bank AG reiterated a “hold” rating on shares of MGIC Investment Corp. in a research report on Saturday, August 6th. FBR & Co lifted their target price on shares of MGIC Investment Corp. from $7.50 to $9.00 and gave the company an “outperform” rating in a research note on Wednesday, July 20th. BTIG Research reissued a “buy” rating and set a $12.00 target price on shares of MGIC Investment Corp. in a research note on Tuesday, July 19th. MKM Partners reissued a “buy” rating on shares of MGIC Investment Corp. in a research note on Thursday, August 25th. Finally, Compass Point raised shares of MGIC Investment Corp. from a “neutral” rating to a “buy” rating and lifted their target price for the company from $8.50 to $9.00 in a research note on Wednesday, July 20th. Four investment analysts have rated the stock with a hold rating and seven have given a buy rating to the company. The stock currently has an average rating of “Buy” and a consensus target price of $10.09.
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Shares of MGIC Investment Corp. (NYSE:MTG) traded down 0.12% during mid-day trading on Tuesday, hitting $8.01. The stock had a trading volume of 1,766,629 shares. The stock has a 50-day moving average price of $7.82 and a 200 day moving average price of $7.13. The stock has a market cap of $2.73 billion, a P/E ratio of 3.30 and a beta of 2.79. MGIC Investment Corp. has a 52 week low of $5.36 and a 52 week high of $10.05.
MGIC Investment Corp. (NYSE:MTG) last posted its quarterly earnings data on Tuesday, July 19th. The company reported $0.26 earnings per share for the quarter, topping the consensus estimate of $0.20 by $0.06. MGIC Investment Corp. had a net margin of 105.16% and a return on equity of 18.40%. The firm had revenue of $263.50 million for the quarter, compared to analysts’ expectations of $255.01 million. During the same period in the previous year, the company posted $0.28 EPS. On average, equities analysts forecast that MGIC Investment Corp. will post $0.84 EPS for the current fiscal year.
A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Capital Fund Management S.A. purchased a new position in MGIC Investment Corp. during the fourth quarter worth $3,371,000. Oxbow Advisors LLC raised its position in MGIC Investment Corp. by 0.8% in the fourth quarter. Oxbow Advisors LLC now owns 309,940 shares of the company’s stock worth $2,737,000 after buying an additional 2,560 shares in the last quarter. American Century Companies Inc. raised its position in MGIC Investment Corp. by 7.1% in the fourth quarter. American Century Companies Inc. now owns 10,841,434 shares of the company’s stock worth $95,730,000 after buying an additional 722,451 shares in the last quarter. Gargoyle Investment Advisor L.L.C. raised its position in MGIC Investment Corp. by 106.8% in the fourth quarter. Gargoyle Investment Advisor L.L.C. now owns 356,022 shares of the company’s stock worth $3,144,000 after buying an additional 183,828 shares in the last quarter. Finally, Chartwell Investment Partners LLC raised its position in MGIC Investment Corp. by 12.4% in the fourth quarter. Chartwell Investment Partners LLC now owns 9,912,826 shares of the company’s stock worth $87,530,000 after buying an additional 1,094,225 shares in the last quarter. 90.87% of the stock is owned by hedge funds and other institutional investors.
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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