Zacks Investment Research Lowers MGIC Investment Corp. (MTG) to Hold
MGIC Investment Corp. (NYSE:MTG) was downgraded by Zacks Investment Research from a “strong-buy” rating to a “hold” rating in a research report issued 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%.”
Several other research analysts have also weighed in on MTG. FBR & Co upgraded shares of MGIC Investment Corp. from a “market perform” rating to an “outperform” rating and set a $7.50 target price on the stock in a research report on Thursday, June 30th. BTIG Research reaffirmed a “buy” rating and issued a $12.00 price target on shares of MGIC Investment Corp. in a report on Tuesday, July 19th. Compass Point raised shares of MGIC Investment Corp. from a “neutral” rating to a “buy” rating and upped their price target for the company from $8.50 to $9.00 in a report on Wednesday, July 20th. Deutsche Bank AG reaffirmed a “hold” rating on shares of MGIC Investment Corp. in a report on Saturday, August 6th. Finally, MKM Partners reaffirmed a “buy” rating on shares of MGIC Investment Corp. in a report on Thursday, August 25th. Three investment analysts have rated the stock with a hold rating and seven have issued a buy rating to the company. MGIC Investment Corp. has a consensus rating of “Buy” and a consensus price target of $9.78.
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Shares of MGIC Investment Corp. (NYSE:MTG) traded down 1.36% during mid-day trading on Thursday, hitting $7.98. The company had a trading volume of 2,119,018 shares. The firm has a 50-day moving average price of $8.03 and a 200 day moving average price of $7.19. MGIC Investment Corp. has a 52-week low of $5.36 and a 52-week high of $10.05. The firm has a market capitalization of $2.72 billion, a price-to-earnings ratio of 3.29 and a beta of 2.68.
MGIC Investment Corp. (NYSE:MTG) last issued its earnings results 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 company had revenue of $263.50 million for the quarter, compared to analyst estimates of $255.01 million. During the same period in the prior year, the business posted $0.28 earnings per share. Analysts expect that MGIC Investment Corp. will post $0.83 earnings per share for the current year.
A number of institutional investors have recently modified their holdings of MTG. State Street Corp raised its position in shares of 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 during the period. Prudential Financial Inc. raised its position in shares of MGIC Investment Corp. by 3,447.9% in the first quarter. Prudential Financial Inc. now owns 1,008,320 shares of the company’s stock valued at $7,734,000 after buying an additional 979,900 shares during the period. Bank of Montreal Can bought a new position in shares of MGIC Investment Corp. during the second quarter valued at approximately $953,000. Goldentree Asset Management LP raised its position in shares of MGIC Investment Corp. by 6.3% in the first quarter. Goldentree Asset Management LP now owns 1,775,227 shares of the company’s stock valued at $13,616,000 after buying an additional 105,714 shares during the period. Finally, KBC Group NV raised its position in shares of MGIC Investment Corp. by 80.3% in the second quarter. KBC Group NV now owns 324,094 shares of the company’s stock valued at $1,928,000 after buying an additional 144,341 shares during the period. 90.84% 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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