MGIC Investment (MTG) Lowered to “Underperform” at Bank of America

MGIC Investment (NYSE:MTG) was downgraded by investment analysts at Bank of America from a “neutral” rating to an “underperform” rating in a report released on Wednesday, The Fly reports.

A number of other analysts have also issued reports on the company. Zacks Investment Research raised MGIC Investment from a “strong sell” rating to a “hold” rating in a research note on Tuesday. Wells Fargo & Co reaffirmed a “hold” rating on shares of MGIC Investment in a research note on Tuesday, May 8th. ValuEngine lowered MGIC Investment from a “buy” rating to a “hold” rating in a research note on Friday, April 27th. BTIG Research reaffirmed a “buy” rating and issued a $18.00 price target on shares of MGIC Investment in a research note on Sunday, April 22nd. Finally, Barclays lowered their price target on MGIC Investment from $18.00 to $16.00 and set a “buy” rating on the stock in a research note on Wednesday, April 11th. One research analyst has rated the stock with a sell rating, four have assigned a hold rating and eleven have given a buy rating to the company. MGIC Investment has an average rating of “Buy” and a consensus price target of $15.87.

Shares of NYSE:MTG opened at $11.28 on Wednesday. The company has a current ratio of 0.25, a quick ratio of 0.25 and a debt-to-equity ratio of 0.26. The company has a market capitalization of $4.16 billion, a PE ratio of 8.29, a PEG ratio of 1.12 and a beta of 1.95. MGIC Investment has a 1 year low of $9.97 and a 1 year high of $16.21.

MGIC Investment (NYSE:MTG) last issued its quarterly earnings results on Wednesday, April 18th. The insurance provider reported $0.38 earnings per share (EPS) for the quarter, topping the Zacks’ consensus estimate of $0.35 by $0.03. The firm had revenue of $265.80 million for the quarter, compared to analyst estimates of $273.94 million. MGIC Investment had a return on equity of 17.43% and a net margin of 38.25%. The business’s revenue was up 1.9% on a year-over-year basis. During the same period in the previous year, the company posted $0.31 earnings per share. research analysts anticipate that MGIC Investment will post 1.42 EPS for the current fiscal year.

MGIC Investment declared that its Board of Directors has approved a share buyback program on Thursday, April 26th that authorizes the company to buyback $200.00 million in outstanding shares. This buyback authorization authorizes the insurance provider to reacquire up to 5.3% of its stock through open market purchases. Stock buyback programs are typically an indication that the company’s board believes its stock is undervalued.

A number of institutional investors have recently made changes to their positions in the stock. BlackRock Inc. lifted its position in MGIC Investment by 1.7% during the first quarter. BlackRock Inc. now owns 25,122,570 shares of the insurance provider’s stock worth $326,594,000 after buying an additional 415,847 shares in the last quarter. LSV Asset Management lifted its position in MGIC Investment by 3.0% during the first quarter. LSV Asset Management now owns 13,447,744 shares of the insurance provider’s stock worth $174,820,000 after buying an additional 395,200 shares in the last quarter. Northern Trust Corp lifted its position in MGIC Investment by 0.3% during the first quarter. Northern Trust Corp now owns 6,911,298 shares of the insurance provider’s stock worth $89,846,000 after buying an additional 20,934 shares in the last quarter. Clearbridge Investments LLC lifted its position in MGIC Investment by 4.1% during the fourth quarter. Clearbridge Investments LLC now owns 5,764,294 shares of the insurance provider’s stock worth $81,334,000 after buying an additional 228,163 shares in the last quarter. Finally, Point72 Asset Management L.P. purchased a new position in MGIC Investment during the first quarter worth approximately $64,928,000. Hedge funds and other institutional investors own 91.32% of the company’s stock.

About MGIC Investment

MGIC Investment Corporation, through its subsidiaries, provides private mortgage insurance and ancillary services to lenders and government sponsored entities in the United States. The company offers primary mortgage insurance that provides mortgage default protection on individual loans, as well as covers unpaid loan principal, delinquent interest, and various expenses associated with the default and subsequent foreclosure.

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