MGIC Investment Corp. (MTG) Upgraded by Zacks Investment Research to Strong-Buy
Zacks Investment Research upgraded shares of MGIC Investment Corp. (NYSE:MTG) from a hold rating to a strong-buy rating in a research report sent to investors on Wednesday morning. The firm currently has $9.25 target price on the stock.
According to Zacks, “MGIC Investment’s insurance in force has been witnessing growth owing to the addition of high quality new insurance. Notably, in the second quarter the metric rose 5.2% year-over-year. Per the August operating statistics, the company’s insurance in force grew 4.6% 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. While, the Zacks Consensus Estimate for 2016 remained stable over the last 60 days, the same has been moving north for 2017 over the same time frame. However, a competitive environment and pressure to maintain capital at required level will reduce the company’s capital flexibility.”
Other analysts have also issued research reports about the company. Deutsche Bank AG reaffirmed a hold rating on shares of MGIC Investment Corp. in a research note on Saturday, August 6th. BTIG Research reaffirmed a buy rating and issued a $12.00 price target on shares of MGIC Investment Corp. in a research note on Tuesday, July 19th. FBR & Co raised MGIC Investment Corp. from a market perform rating to an outperform rating and set a $7.50 price target for the company in a research note on Thursday, June 30th. Keefe, Bruyette & Woods raised their price target on MGIC Investment Corp. from $9.00 to $9.50 and gave the stock an outperform rating in a research note on Tuesday. Finally, Compass Point raised MGIC Investment Corp. from a neutral rating to a buy rating and raised their price target for the stock from $8.50 to $9.00 in a research note on Wednesday, July 20th. Three research analysts have rated the stock with a hold rating, seven have issued a buy rating and one has given a strong buy rating to the company. The company has a consensus rating of Buy and an average target price of $9.89.
MGIC Investment Corp. (NYSE:MTG) traded up 0.063% during mid-day trading on Wednesday, hitting $8.005. 1,111,241 shares of the stock traded hands. MGIC Investment Corp. has a 52-week low of $5.36 and a 52-week high of $10.05. The firm has a market cap of $2.73 billion, a P/E ratio of 3.302 and a beta of 2.68. The firm’s 50-day moving average is $8.02 and its 200 day moving average is $7.17.
MGIC Investment Corp. (NYSE:MTG) last announced its quarterly earnings results on Tuesday, July 19th. The company reported $0.26 EPS for the quarter, topping analysts’ consensus estimates of $0.20 by $0.06. MGIC Investment Corp. had a return on equity of 18.40% and a net margin of 105.16%. The company earned $263.50 million during the quarter, compared to analyst estimates of $255.01 million. During the same quarter last year, the firm posted $0.28 earnings per share. Equities analysts predict that MGIC Investment Corp. will post $0.84 EPS for the current fiscal year.
Large investors have recently added to or reduced their stakes in the stock. State Street Corp increased its stake in MGIC Investment Corp. by 1.9% in the first quarter. State Street Corp now owns 12,555,928 shares of the company’s stock worth $96,303,000 after buying an additional 239,143 shares in the last quarter. Senator Investment Group LP increased its position in shares of MGIC Investment Corp. by 14.6% in the second quarter. Senator Investment Group LP now owns 11,000,000 shares of the company’s stock worth $65,450,000 after buying an additional 1,400,000 shares during the period. Platinum Investment Management Ltd. increased its position in shares of MGIC Investment Corp. by 5.3% in the second quarter. Platinum Investment Management Ltd. now owns 10,097,304 shares of the company’s stock worth $60,078,000 after buying an additional 504,622 shares during the period. BlackRock Institutional Trust Company N.A. increased its position in shares of MGIC Investment Corp. by 2.1% in the second quarter. BlackRock Institutional Trust Company N.A. now owns 8,766,393 shares of the company’s stock worth $52,160,000 after buying an additional 178,180 shares during the period. Finally, Marshall Wace LLP increased its position in shares of MGIC Investment Corp. by 13.3% in the second quarter. Marshall Wace LLP now owns 7,302,578 shares of the company’s stock worth $43,450,000 after buying an additional 858,282 shares during the period. Institutional investors and hedge funds own 90.84% of the company’s stock.
MGIC Investment Corp. Company Profile
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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