Zacks Investment Research Lowers MGIC Investment Corporation (MTG) to Hold
Zacks Investment Research cut shares of MGIC Investment Corporation (NYSE:MTG) from a buy rating to a hold rating in a report released on Wednesday morning.
According to Zacks, “Shares of MGIC Investment have outperformed the industry, year to date. The company also seen its 2017 and 2018 estimates moving north over the last 60 days. MGIC Investment remains well poised to deliver improved earnings banking on declining delinquency, lower claims payments and improving housing market. The company expects to write about the same amount of new business as 2016, and also estimates insurance in force to improve in 2017. This apart, the company remains focused in enhancing shareholders’ value and is a major contributor to housing finance policy. Also, positive credit trends, low expense ratio are tailwinds. However, a competitive environment and pressure to maintain capital at required level will reduce the company’s capital flexibility.”
Several other equities research analysts also recently weighed in on MTG. BidaskClub raised shares of MGIC Investment Corporation from a hold rating to a buy rating in a research note on Wednesday, June 14th. Deutsche Bank AG increased their price objective on shares of MGIC Investment Corporation from $13.00 to $13.50 and gave the company a buy rating in a research report on Friday, July 21st. BTIG Research reissued a buy rating and issued a $14.00 price objective (up from $12.00) on shares of MGIC Investment Corporation in a research report on Saturday, July 22nd. Finally, Keefe, Bruyette & Woods reissued a buy rating and issued a $13.00 price objective on shares of MGIC Investment Corporation in a research report on Thursday, August 31st. Two equities research analysts have rated the stock with a hold rating, nine have issued a buy rating and one has given a strong buy rating to the stock. The stock currently has an average rating of Buy and a consensus target price of $12.25.
MGIC Investment Corporation (MTG) traded down 0.87% during trading on Wednesday, hitting $12.47. 1,763,468 shares of the stock were exchanged. MGIC Investment Corporation has a 12 month low of $7.84 and a 12 month high of $12.65. The stock’s 50 day moving average price is $11.75 and its 200 day moving average price is $11.16. The stock has a market cap of $4.62 billion, a P/E ratio of 12.84 and a beta of 2.16.
MGIC Investment Corporation (NYSE:MTG) last announced its earnings results on Thursday, July 20th. The insurance provider reported $0.31 earnings per share for the quarter, topping the consensus estimate of $0.25 by $0.06. MGIC Investment Corporation had a net margin of 34.99% and a return on equity of 16.56%. The firm had revenue of $263.31 million for the quarter, compared to the consensus estimate of $263.43 million. During the same period in the prior year, the firm earned $0.26 EPS. The firm’s revenue for the quarter was down .1% on a year-over-year basis. Analysts forecast that MGIC Investment Corporation will post $1.14 EPS for the current fiscal year.
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Large investors have recently made changes to their positions in the business. BlackRock Inc. boosted its holdings in shares of MGIC Investment Corporation by 26,215.6% in the 1st quarter. BlackRock Inc. now owns 24,922,469 shares of the insurance provider’s stock valued at $252,464,000 after buying an additional 24,827,763 shares in the last quarter. MARSHALL WACE ASIA Ltd acquired a new position in shares of MGIC Investment Corporation in the 1st quarter valued at $52,793,000. AJO LP acquired a new position in shares of MGIC Investment Corporation in the 2nd quarter valued at $54,935,000. Janus Henderson Group PLC acquired a new position in shares of MGIC Investment Corporation in the 2nd quarter valued at $45,117,000. Finally, Vanguard Group Inc. boosted its holdings in shares of MGIC Investment Corporation by 9.9% in the 2nd quarter. Vanguard Group Inc. now owns 34,753,956 shares of the insurance provider’s stock valued at $389,244,000 after buying an additional 3,120,511 shares in the last quarter. 89.58% of the stock is currently owned by institutional investors.
About MGIC Investment Corporation
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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