MGIC Investment Corp. (MTG) Lowered to Hold at Zacks Investment Research
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.”
A number of other research firms also recently issued reports on MTG. MKM Partners reiterated a buy rating on shares of MGIC Investment Corp. in a research report on Thursday, August 25th. Deutsche Bank AG reiterated a hold rating on shares of MGIC Investment Corp. in a research report on Saturday, August 6th. FBR & Co increased their target price on shares of MGIC Investment Corp. from $7.50 to $9.00 and gave the stock an outperform rating in a research report on Wednesday, July 20th. Compass Point upgraded shares of MGIC Investment Corp. from a neutral rating to a buy rating and increased their target price for the stock from $8.50 to $9.00 in a research report on Wednesday, July 20th. Finally, BTIG Research restated a buy rating and set a $12.00 price target on shares of MGIC Investment Corp. in a research note on Tuesday, July 19th. Four analysts have rated the stock with a hold rating and seven have issued a buy rating to the company. The company currently has a consensus rating of Buy and a consensus target price of $10.09.
MGIC Investment Corp. (NYSE:MTG) opened at 7.97 on Tuesday. The firm has a market cap of $2.71 billion, a price-to-earnings ratio of 3.29 and a beta of 2.79. The firm has a 50-day moving average of $7.84 and a 200-day moving average of $7.13. MGIC Investment Corp. has a one year low of $5.36 and a one year high of $10.05.
MGIC Investment Corp. (NYSE:MTG) last released its earnings results on Tuesday, July 19th. The company reported $0.26 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.20 by $0.06. MGIC Investment Corp. had a net margin of 105.16% and a return on equity of 18.40%. The company earned $263.50 million during the quarter, compared to the consensus estimate of $255.01 million. During the same quarter in the prior year, the firm earned $0.28 EPS. Analysts anticipate that MGIC Investment Corp. will post $0.84 EPS for the current year.
Hedge funds have recently bought and sold shares of the company. Invictus RG raised its stake in MGIC Investment Corp. by 116.2% in the first quarter. Invictus RG now owns 13,322 shares of the company’s stock valued at $102,000 after buying an additional 7,160 shares in the last quarter. Envestnet Asset Management Inc. increased its position in shares of MGIC Investment Corp. by 4.7% in the first quarter. Envestnet Asset Management Inc. now owns 15,217 shares of the company’s stock valued at $117,000 after buying an additional 689 shares in the last quarter. 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 valued at $129,000 after buying an additional 333 shares in the last quarter. Pacer Advisors Inc. purchased a new position in shares of MGIC Investment Corp. during the second quarter valued at about $106,000. Finally, Stevens Capital Management LP purchased a new position in shares of MGIC Investment Corp. during the second quarter valued at about $114,000. Institutional investors own 90.84% of the company’s stock.
About MGIC Investment Corp.
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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