Zacks Investment Research upgraded shares of MGIC Investment Corp. (NYSE:MTG) from a hold rating to a strong-buy rating in a research report released on Wednesday. They currently have $9.25 price target on the stock.
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 equities research analysts have also recently weighed in on MTG. FBR & Co upgraded MGIC Investment Corp. from a market perform rating to an outperform rating and set a $7.50 price objective for the company in a research note on Thursday, June 30th. BTIG Research reiterated a buy rating and issued a $12.00 price target on shares of MGIC Investment Corp. in a research note on Tuesday, July 19th. Compass Point upgraded MGIC Investment Corp. from a neutral rating to a buy rating and increased their price target for the company from $8.50 to $9.00 in a research note on Wednesday, July 20th. Deutsche Bank AG reiterated a hold rating on shares of MGIC Investment Corp. in a research note on Saturday, August 6th. Finally, MKM Partners reiterated a buy rating on shares of MGIC Investment Corp. in a research note on Thursday, August 25th. Three analysts have rated the stock with a hold rating, seven have given a buy rating and one has given a strong buy rating to the company. The company currently has an average rating of Buy and an average price target of $9.89.
Shares of MGIC Investment Corp. (NYSE:MTG) traded up 0.063% on Wednesday, hitting $8.005. The company had a trading volume of 1,111,241 shares. The stock’s 50-day moving average is $8.02 and its 200 day moving average is $7.17. MGIC Investment Corp. has a 52 week low of $5.36 and a 52 week high of $10.05. The company has a market capitalization of $2.73 billion, a price-to-earnings ratio of 3.302 and a beta of 2.68.
MGIC Investment Corp. (NYSE:MTG) last issued its quarterly earnings data on Tuesday, July 19th. The company reported $0.26 earnings per share for the quarter, topping analysts’ consensus estimates of $0.20 by $0.06. The firm earned $263.50 million during the quarter, compared to analysts’ expectations of $255.01 million. MGIC Investment Corp. had a return on equity of 18.40% and a net margin of 105.16%. During the same period in the prior year, the business posted $0.28 EPS. Equities analysts expect that MGIC Investment Corp. will post $0.84 EPS for the current year.
A number of hedge funds have recently bought and sold shares of MTG. State Street Corp raised its stake in MGIC Investment Corp. by 1.9% in the first quarter. State Street Corp now owns 12,555,928 shares of the company’s stock valued at $96,303,000 after buying an additional 239,143 shares during the period. Senator Investment Group LP raised its stake in MGIC Investment Corp. by 14.6% in the second quarter. Senator Investment Group LP now owns 11,000,000 shares of the company’s stock valued at $65,450,000 after buying an additional 1,400,000 shares during the period. Platinum Investment Management Ltd. raised its stake in MGIC Investment Corp. by 5.3% in the second quarter. Platinum Investment Management Ltd. now owns 10,097,304 shares of the company’s stock valued at $60,078,000 after buying an additional 504,622 shares during the period. BlackRock Institutional Trust Company N.A. raised its stake in MGIC Investment Corp. by 2.1% in the second quarter. BlackRock Institutional Trust Company N.A. now owns 8,766,393 shares of the company’s stock valued at $52,160,000 after buying an additional 178,180 shares during the period. Finally, Marshall Wace LLP raised its stake in MGIC Investment Corp. by 13.3% in the second quarter. Marshall Wace LLP now owns 7,302,578 shares of the company’s stock valued at $43,450,000 after buying an additional 858,282 shares during the period. 90.84% of the stock is currently owned by hedge funds and other institutional investors.
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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