MGIC Investment (NYSE:MTG) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research report issued to clients and investors 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 also recently weighed in on MTG. B. Riley reaffirmed a “buy” rating and issued a $19.00 price objective on shares of MGIC Investment in a report on Thursday, January 18th. Wells Fargo & Co reaffirmed a “buy” rating on shares of MGIC Investment in a report on Friday, December 8th. ValuEngine raised shares of 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 shares of MGIC Investment in a report on Wednesday, December 20th. They issued an “outperform” rating and a $18.00 price objective for the company. Finally, BTIG Research upped their price objective on shares of MGIC Investment from $16.00 to $18.00 and gave the stock 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 issued a strong buy rating to the company’s stock. MGIC Investment presently has a consensus rating of “Buy” and a consensus price target of $16.39.

MGIC Investment (MTG) opened at $13.32 on Monday. MGIC Investment has a 1-year low of $9.68 and a 1-year high of $16.21. The stock has a market cap of $4,950.00, a price-to-earnings ratio of 10.33, a PEG ratio of 1.47 and a beta of 2.27. The company has a current ratio of 0.18, a quick ratio of 0.18 and a debt-to-equity ratio of 0.26.

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

Hedge funds and other institutional investors have recently modified their holdings of the business. Nisa Investment Advisors LLC lifted its holdings in MGIC Investment by 125.4% in the 4th 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 MGIC Investment in the 3rd quarter valued at about $107,000. Eqis Capital Management Inc. acquired a new stake in MGIC Investment in the 4th quarter valued at about $144,000. Sciencast Management LP acquired a new stake in MGIC Investment in the 4th quarter valued at about $171,000. Finally, Signition LP acquired a new stake in MGIC Investment in the 4th quarter valued at about $156,000. 92.90% of the stock is owned by institutional investors.

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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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