MGIC Investment Corp. (MTG) Downgraded by Zacks Investment Research to “Hold”
According to Zacks, “MGIC Investment’s insurance in force has been witnessing growth owing to the addition of high quality new insurance. Per the September operating statistics, the company’s insurance in force grew 4.3% 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. However, a competitive environment and pressure to maintain capital at required level will reduce the company’s capital flexibility. The company is set to report third quarter results on Oct 18. The Zacks Consensus Estimate is pegged at $0.17 per share, down 40.5%. However, our proven model state that company will beat estimate as it has the right combination of Zacks Rank #3 that increases predictive power of a beat and Earnings ESP of 7.65%.”
Other research analysts have also issued research reports about the company. Deutsche Bank AG reiterated a hold rating on shares of MGIC Investment Corp. in a report on Saturday, August 6th. BTIG Research restated a buy rating and issued a $12.00 price objective on shares of MGIC Investment Corp. in a report on Tuesday, July 19th. FBR & Co upgraded shares of MGIC Investment Corp. from a market perform rating to an outperform rating and set a $7.50 price objective on the stock in a report on Thursday, June 30th. Compass Point upgraded shares of MGIC Investment Corp. from a neutral rating to a buy rating and boosted their price objective for the company from $8.50 to $9.00 in a report on Wednesday, July 20th. Finally, Keefe, Bruyette & Woods boosted their price objective on shares of MGIC Investment Corp. from $9.00 to $9.50 and gave the company an outperform rating in a report on Tuesday, October 4th. Three research analysts have rated the stock with a hold rating and seven have assigned a buy rating to the stock. MGIC Investment Corp. presently has a consensus rating of Buy and an average target price of $9.78.
Shares of MGIC Investment Corp. (NYSE:MTG) traded up 0.817% on Thursday, reaching $8.025. 1,509,173 shares of the company’s stock traded hands. The firm has a market capitalization of $2.73 billion, a P/E ratio of 3.311 and a beta of 2.68. The firm’s 50 day moving average is $8.03 and its 200 day moving average is $7.19. MGIC Investment Corp. has a 52 week low of $5.36 and a 52 week high of $10.05.
MGIC Investment Corp. (NYSE:MTG) last posted its quarterly earnings results on Tuesday, July 19th. The company reported $0.26 EPS for the quarter, topping the consensus estimate 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 business had revenue of $263.50 million for the quarter, compared to analyst estimates of $255.01 million. During the same quarter in the previous year, the firm earned $0.28 EPS. Analysts expect that MGIC Investment Corp. will post $0.83 earnings per share for the current fiscal year.
A number of institutional investors have recently made changes to their positions in the stock. Invictus RG increased its position in shares of MGIC Investment Corp. by 116.2% in the first quarter. Invictus RG now owns 13,322 shares of the company’s stock worth $102,000 after buying an additional 7,160 shares during the period. Creative Planning increased its position in shares of MGIC Investment Corp. by 3.3% in the third quarter. Creative Planning now owns 14,325 shares of the company’s stock worth $115,000 after buying an additional 457 shares during the period. Boothbay Fund Management LLC increased its position in shares of MGIC Investment Corp. by 2.0% in the first quarter. Boothbay Fund Management LLC now owns 16,808 shares of the company’s stock worth $129,000 after buying an additional 333 shares during the period. Pacer Advisors Inc. acquired a new position in shares of MGIC Investment Corp. during the second quarter worth about $106,000. Finally, Stevens Capital Management LP acquired a new position in shares of MGIC Investment Corp. during the second quarter worth about $114,000. 90.84% of the stock is owned by hedge funds and other institutional investors.
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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