MGIC Investment (NYSE:MTG) Upgraded to “Strong-Buy” at Zacks Investment Research

Zacks Investment Research upgraded shares of MGIC Investment (NYSE:MTG) from a hold rating to a strong-buy rating in a report published on Tuesday morning, Zacks.com reports. The brokerage currently has $19.00 target price on the insurance provider’s stock.

According to Zacks, “Shares of MGIC Investments have outperformed the industry in the past year. It has been witnessing an increase in new business written. Given the strong purchase market and potential share gains from FHA, the company anticipates strong writing. MGIC’s insurance in force remains solid. A decline in loss and claims payments will likely solidify its balance sheet and improve its financial profile. Improved earnings, banking on declining delinquency, lower claims payments and improved housing market should drive company’s growth. The company also flaunts solid capital position on the back of which it deploys capital effectively. However, a competitive environment and pressure to maintain capital at the required level will likely dent capital flexibility. Also, increase in underwriting and other expenses weigh on the company's margins.”

Other equities analysts have also recently issued reports about the company. Credit Suisse Group increased their price target on MGIC Investment from $15.00 to $16.00 and gave the company a neutral rating in a report on Monday, October 11th. B. Riley upped their price objective on MGIC Investment from $18.00 to $19.00 and gave the stock a buy rating in a research note on Wednesday, October 13th. Barclays upped their price objective on MGIC Investment from $19.00 to $23.00 and gave the stock an overweight rating in a research note on Monday, January 10th. Finally, Bank of America lowered MGIC Investment from a buy rating to a neutral rating and upped their price objective for the stock from $16.00 to $16.50 in a research note on Wednesday, November 17th. Three investment analysts have rated the stock with a hold rating, three have issued a buy rating and one has given a strong buy rating to the company’s stock. According to data from MarketBeat, the company currently has a consensus rating of Buy and a consensus target price of $18.07.

NYSE MTG opened at $16.46 on Tuesday. The business’s fifty day moving average price is $14.76 and its 200-day moving average price is $14.84. The stock has a market capitalization of $5.36 billion, a price-to-earnings ratio of 9.30, a PEG ratio of 1.59 and a beta of 1.71. The company has a debt-to-equity ratio of 0.26, a current ratio of 0.34 and a quick ratio of 0.34. MGIC Investment has a 1-year low of $11.56 and a 1-year high of $16.84.

MGIC Investment (NYSE:MTG) last released its quarterly earnings results on Wednesday, November 3rd. The insurance provider reported $0.46 earnings per share for the quarter, meeting the consensus estimate of $0.46. The firm had revenue of $294.74 million for the quarter. MGIC Investment had a return on equity of 12.61% and a net margin of 51.30%. During the same period in the previous year, the company earned $0.43 earnings per share. Equities research analysts anticipate that MGIC Investment will post 1.76 EPS for the current year.

The firm also recently declared a quarterly dividend, which was paid on Tuesday, November 23rd. Shareholders of record on Thursday, November 11th were paid a $0.08 dividend. The ex-dividend date was Tuesday, November 9th. This represents a $0.32 dividend on an annualized basis and a yield of 1.94%. MGIC Investment’s payout ratio is presently 18.08%.

In other MGIC Investment news, Director Daniel A. Arrigoni purchased 5,000 shares of the business’s stock in a transaction on Thursday, December 2nd. The stock was acquired at an average price of $14.19 per share, for a total transaction of $70,950.00. The transaction was disclosed in a filing with the SEC, which is accessible through this link. Corporate insiders own 0.67% of the company’s stock.

Hedge funds have recently modified their holdings of the business. JJJ Advisors Inc. increased its stake in MGIC Investment by 122.8% in the 3rd quarter. JJJ Advisors Inc. now owns 3,509 shares of the insurance provider’s stock worth $52,000 after buying an additional 1,934 shares in the last quarter. Van ECK Associates Corp boosted its holdings in shares of MGIC Investment by 129.1% during the 2nd quarter. Van ECK Associates Corp now owns 4,002 shares of the insurance provider’s stock valued at $54,000 after purchasing an additional 2,255 shares during the last quarter. William Blair Investment Management LLC bought a new position in shares of MGIC Investment during the 2nd quarter valued at about $86,000. Dark Forest Capital Management LP bought a new position in shares of MGIC Investment during the 2nd quarter valued at about $142,000. Finally, Colony Group LLC bought a new position in shares of MGIC Investment during the 2nd quarter valued at about $150,000. Institutional investors and hedge funds own 95.17% of the company’s stock.

About MGIC Investment

MGIC Investment Corp. is a private mortgage insurer that serves lenders throughout the United States, and Puerto Rico. It also provides lenders with underwriting and other services and products related to home mortgage lending through its subsidiaries, such as Mortgage Guaranty Insurance Corp. and MGIC Indemnity Corp.

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