MGIC Investment Corp. (MTG) Lowered to Hold at Zacks Investment Research
MGIC Investment Corp. (NYSE:MTG) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research report issued on Thursday.
According to Zacks, “MGIC Investment’s first-quarter 2017 earnings beat the Zacks Consensus Estimate and also improved significantly on a year-over-year basis. The company expects to write about the same amount of new business as 2016, and also estimates insurance in force to improve in 2017. This apart, the company remains focused in enhancing shareholders’ value and be a major contributor to housing finance policy. Also, positive credit trends, low expense ratio are tailwinds. Moreover, an improving housing market and 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. Shares of MGIC Investment have underperformed the Zacks categorized Multi line industry, since the release of first-quarter results.”
Other research analysts have also recently issued reports about the company. Compass Point raised MGIC Investment Corp. from a “neutral” rating to a “buy” rating in a research note on Wednesday, April 12th. MKM Partners reissued a “buy” rating and issued a $13.00 target price (up from $10.00) on shares of MGIC Investment Corp. in a research note on Tuesday, April 25th. FBR & Co boosted their target price on MGIC Investment Corp. from $12.00 to $13.00 and gave the company an “outperform” rating in a research note on Monday, February 13th. TheStreet raised MGIC Investment Corp. from a “c+” rating to a “b” rating in a research note on Wednesday, February 22nd. Finally, Credit Suisse Group AG set a $10.00 target price on MGIC Investment Corp. and gave the company a “hold” rating in a research note on Wednesday, February 8th. Two research analysts have rated the stock with a hold rating and eight have given a buy rating to the company. The company presently has an average rating of “Buy” and a consensus price target of $11.55.
Shares of MGIC Investment Corp. (NYSE:MTG) traded up 2.55% on Thursday, hitting $10.85. The stock had a trading volume of 2,133,190 shares. The firm has a 50 day moving average price of $10.43 and a 200-day moving average price of $10.11. The company has a market cap of $4.02 billion, a price-to-earnings ratio of 11.73 and a beta of 2.52. MGIC Investment Corp. has a 52 week low of $5.36 and a 52 week high of $11.35.
MGIC Investment Corp. (NYSE:MTG) last posted its earnings results on Thursday, April 20th. The insurance provider reported $0.31 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.24 by $0.07. MGIC Investment Corp. had a return on equity of 15.98% and a net margin of 32.24%. The firm had revenue of $260.90 million during the quarter, compared to analysts’ expectations of $262.97 million. During the same period in the previous year, the firm earned $0.17 earnings per share. The company’s revenue was up .9% on a year-over-year basis. Analysts anticipate that MGIC Investment Corp. will post $1.05 EPS for the current year.
Hedge funds and other institutional investors have recently bought and sold shares of the company. Chicago Equity Partners LLC bought a new position in shares of MGIC Investment Corp. during the third quarter valued at approximately $2,092,000. Quantbot Technologies LP bought a new position in shares of MGIC Investment Corp. during the third quarter valued at approximately $850,000. Blue Rock Advisors LLC bought a new position in shares of MGIC Investment Corp. during the third quarter valued at approximately $604,000. BlackRock Inc. boosted its position in shares of MGIC Investment Corp. by 8.3% in the third quarter. BlackRock Inc. now owns 129,365 shares of the insurance provider’s stock valued at $1,035,000 after buying an additional 9,968 shares during the period. Finally, BlackRock Fund Advisors boosted its position in shares of MGIC Investment Corp. by 6.7% in the third quarter. BlackRock Fund Advisors now owns 9,104,726 shares of the insurance provider’s stock valued at $72,838,000 after buying an additional 574,189 shares during the period. 90.48% of the stock is owned by 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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