MGIC Investment’s (MTG) Buy Rating Reaffirmed at Wells Fargo & Company
MGIC Investment (NYSE:MTG)‘s stock had its “buy” rating reiterated by equities research analysts at Wells Fargo & Company in a research note issued on Friday.
The analysts wrote, “We prefer MTG as a way to play the housing recovery among legacy mortgage insurers. MTG is unencumbered by nonmortgage insurance business lines that confuse the story and the company has experienced upward estimate revisions driven by lower loss estimates, a trend that we think is more sustainable at MTG. With relationships with about 5,000 lenders and servicers, MTG has the largest customer base in the industry. The legacy book of MGIC is helped by home price appreciation, which acts as a mitigating factor in loss severity. On the new business front, MTG has pivoted toward purchase mortgages, which is a positive since purchase mortgages are 3x4x more likely to have private mortgage insurance and that refinancing activity leads to higher cancellation rates and lower persistency. MTG also has an industryleading expense ratio which should allow margins to expand.””
Several other analysts also recently commented on MTG. Zacks Investment Research upgraded shares of MGIC Investment from a “hold” rating to a “buy” rating and set a $15.00 target price on the stock in a report on Monday, October 23rd. Bank of America raised their target price on shares of MGIC Investment from $13.00 to $16.00 and gave the stock a “buy” rating in a report on Friday, October 20th. MKM Partners raised their target price on shares of MGIC Investment to $16.00 and gave the stock a “buy” rating in a report on Thursday, October 19th. FBR & Co reaffirmed a “buy” rating on shares of MGIC Investment in a research note on Wednesday, October 18th. Finally, BTIG Research reaffirmed a “buy” rating and set a $14.00 price target on shares of MGIC Investment in a research note on Saturday, October 14th. Two equities research analysts have rated the stock with a hold rating, eleven have issued a buy rating and one has given a strong buy rating to the company. The company currently has a consensus rating of “Buy” and a consensus price target of $14.34.
MGIC Investment (NYSE:MTG) last announced its quarterly earnings results on Wednesday, October 18th. The insurance provider reported $0.32 earnings per share for the quarter, beating analysts’ consensus estimates of $0.26 by $0.06. The business had revenue of $270.30 million for the quarter, compared to the consensus estimate of $267.85 million. MGIC Investment had a net margin of 41.08% and a return on equity of 16.41%. MGIC Investment’s revenue for the quarter was down 1.3% on a year-over-year basis. During the same period last year, the company posted $0.14 EPS. research analysts predict that MGIC Investment will post 1.21 earnings per share for the current fiscal year.
Hedge funds have recently added to or reduced their stakes in the business. Wealthcare Advisory Partners LLC bought a new position in MGIC Investment during the third quarter worth $107,000. Fox Run Management L.L.C. acquired a new stake in shares of MGIC Investment during the second quarter worth $116,000. Appleton Group LLC acquired a new stake in shares of MGIC Investment during the second quarter worth $119,000. Advisors Asset Management Inc. acquired a new stake in shares of MGIC Investment during the second quarter worth $121,000. Finally, Sawgrass Asset Management LLC acquired a new position in MGIC Investment in the second quarter valued at about $123,000. 91.31% of the stock is owned by hedge funds and other institutional investors.
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About MGIC Investment
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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