MGIC Investment Corp. (MTG) Downgraded by 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 Thursday.
According to Zacks, “MGIC Investment’s insurance in force has been witnessing growth owing to the addition of high quality new insurance. Per the September operating statistics, the company’s insurance in force grew 4.3% 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. However, a competitive environment and pressure to maintain capital at required level will reduce the company’s capital flexibility. The company is set to report third quarter results on Oct 18. The Zacks Consensus Estimate is pegged at $0.17 per share, down 40.5%. However, our proven model state that company will beat estimate as it has the right combination of Zacks Rank #3 that increases predictive power of a beat and Earnings ESP of 7.65%.”
MTG has been the subject of a number of other reports. FBR & Co upped their price objective on MGIC Investment Corp. from $7.50 to $9.00 and gave the stock an “outperform” rating in a research note on Wednesday, July 20th. Keefe, Bruyette & Woods upped their price objective on MGIC Investment Corp. from $9.00 to $9.50 and gave the stock an “outperform” rating in a research note on Tuesday, October 4th. BTIG Research restated a “buy” rating and set a $12.00 price objective on shares of MGIC Investment Corp. in a research note on Tuesday, July 19th. MKM Partners restated a “buy” rating on shares of MGIC Investment Corp. in a research note on Thursday, August 25th. Finally, Compass Point upgraded MGIC Investment Corp. from a “neutral” rating to a “buy” rating and upped their price objective for the stock from $8.50 to $9.00 in a research note on Wednesday, July 20th. Three investment analysts have rated the stock with a hold rating and seven have given a buy rating to the stock. MGIC Investment Corp. has a consensus rating of “Buy” and a consensus price target of $9.78.
This story is the sole property of American Banking News and it was originally published by American Banking News. If you are reading this story on another website, that means this article was illegally copied and re-published to this website in violation of U.S. and International copyright law. The original version of this article is available at https://www.americanbankingnews.com/2016/10/13/mgic-investment-corp-mtg-downgraded-by-zacks-investment-research.html
MGIC Investment Corp. (NYSE:MTG) traded down 1.422% during midday trading on Thursday, hitting $7.975. The company’s stock had a trading volume of 2,010,598 shares. The company has a market cap of $2.72 billion, a price-to-earnings ratio of 3.290 and a beta of 2.68. The company’s 50-day moving average is $8.03 and its 200 day moving average is $7.19. MGIC Investment Corp. has a one year low of $5.36 and a one year high of $10.05.
MGIC Investment Corp. (NYSE:MTG) last posted its quarterly earnings results on Tuesday, July 19th. The company reported $0.26 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.20 by $0.06. MGIC Investment Corp. had a return on equity of 18.40% and a net margin of 105.16%. The business had revenue of $263.50 million for the quarter, compared to the consensus estimate of $255.01 million. During the same quarter in the prior year, the company earned $0.28 EPS. On average, analysts predict that MGIC Investment Corp. will post $0.83 EPS for the current year.
Several hedge funds and other institutional investors have recently made changes to their positions in the company. Invictus RG boosted its position in shares of MGIC Investment Corp. by 116.2% in the first quarter. Invictus RG now owns 13,322 shares of the company’s stock valued at $102,000 after buying an additional 7,160 shares during the last quarter. Creative Planning boosted its position in shares of MGIC Investment Corp. by 3.3% in the third quarter. Creative Planning now owns 14,325 shares of the company’s stock valued at $115,000 after buying an additional 457 shares during the last quarter. Boothbay Fund Management LLC boosted its position in shares of MGIC Investment Corp. by 2.0% in the first quarter. Boothbay Fund Management LLC now owns 16,808 shares of the company’s stock valued at $129,000 after buying an additional 333 shares during the last quarter. Pacer Advisors Inc. purchased a new position in shares of MGIC Investment Corp. during the second quarter valued at about $106,000. Finally, Stevens Capital Management LP purchased a new position in shares of MGIC Investment Corp. during the second quarter valued at about $114,000. Hedge funds and other institutional investors own 90.84% of the company’s stock.
MGIC Investment Corp. Company Profile
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.
For more information about research offerings from Zacks Investment Research, visit Zacks.com
Receive News & Ratings for MGIC Investment Corp. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for MGIC Investment Corp. and related companies with MarketBeat.com's FREE daily email newsletter.