MGIC Investment (MTG) Downgraded by Zacks Investment Research

MGIC Investment (NYSE:MTG) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research note issued on Monday.

According to Zacks, “Shares of MGIC Investment have outperformed the industry in a year. The company remains well-poised to deliver improved earnings, banking on declining delinquency, lower claims payments and improving housing market. MGIC Investment expects to write about $50 billion new business as 2018 and also estimates insurance in force to improve. This apart, the company remains focused in enhancing shareholders’ value. Also, positive credit trends, increasing persistency and low expense ratio are tailwinds. MGIC Investment has a solid track of delivering positive earnings surprise for the last seven quarters. However, a competitive environment and pressure to maintain capital at the required level will reduce the company’s capital flexibility. The company has also seen estimates for 2018 and 2019 moving south over the last 60 days.”

Several other research firms have also weighed in on MTG. B. Riley reissued a “buy” rating and issued a $19.00 target price on shares of MGIC Investment in a report on Thursday, January 18th. Wells Fargo & Co reissued a “buy” rating on shares of MGIC Investment in a report on Friday, December 8th. ValuEngine raised MGIC Investment from a “buy” rating to a “strong-buy” rating in a report on Friday, February 2nd. Royal Bank of Canada began coverage on MGIC Investment in a report on Wednesday, December 20th. They issued an “outperform” rating and a $18.00 target price on the stock. Finally, BTIG Research upped their target price on MGIC Investment from $16.00 to $18.00 and gave the company a “buy” rating in a report on Wednesday, December 20th. One equities research analyst has rated the stock with a hold rating, twelve have assigned a buy rating and one has assigned a strong buy rating to the company’s stock. MGIC Investment has a consensus rating of “Buy” and an average price target of $16.39.

MGIC Investment (NYSE:MTG) traded down $1.46 during trading hours on Monday, reaching $13.28. The company’s stock had a trading volume of 10,376,893 shares, compared to its average volume of 2,784,439. The stock has a market capitalization of $5,466.51, a PE ratio of 14.28, a price-to-earnings-growth ratio of 1.47 and a beta of 2.27. The company has a debt-to-equity ratio of 0.26, a current ratio of 0.18 and a quick ratio of 0.18. MGIC Investment has a 1 year low of $9.68 and a 1 year high of $16.21.

MGIC Investment (NYSE:MTG) last released its quarterly earnings data on Thursday, January 18th. The insurance provider reported $0.43 earnings per share (EPS) for the quarter, topping the Thomson Reuters’ consensus estimate of $0.27 by $0.16. The firm had revenue of $271.50 million during the quarter, compared to analysts’ expectations of $273.66 million. MGIC Investment had a return on equity of 17.36% and a net margin of 33.37%. MGIC Investment’s revenue was up 1.9% compared to the same quarter last year. During the same quarter in the prior year, the business posted $0.28 earnings per share. sell-side analysts anticipate that MGIC Investment will post 1.43 EPS for the current fiscal year.

Several institutional investors and hedge funds have recently bought and sold shares of MTG. Nisa Investment Advisors LLC boosted its stake in shares of MGIC Investment by 125.4% during the fourth quarter. Nisa Investment Advisors LLC now owns 7,190 shares of the insurance provider’s stock valued at $101,000 after acquiring an additional 4,000 shares during the last quarter. Wealthcare Advisory Partners LLC acquired a new stake in shares of MGIC Investment during the third quarter valued at $107,000. Eqis Capital Management Inc. acquired a new stake in shares of MGIC Investment during the fourth quarter valued at $144,000. Zeke Capital Advisors LLC acquired a new stake in shares of MGIC Investment during the third quarter valued at $150,000. Finally, Signition LP acquired a new stake in shares of MGIC Investment during the fourth quarter valued at $156,000. 92.90% of the stock is currently owned by institutional investors and hedge funds.

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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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