Shares of MGIC Investment Corp. (NYSE: MTG) were downgraded by analysts at Zacks Investment Research in a note to their investors today. With a rating of Hold on the shares, the company has a 52-week high of $10.05. The one-year price target of $9.65 is higher than the opening price of $8.07, that has caused a number of other analysts to issue statements on the stock recently. Important and crucial changes in the company’s operations, future ision or industry can cause downgrades as the analysts believe that the future prospects for the security have weakened from the initial recommendation.
U.S. stocks closed higher Tuesday as investors anticipate the results of meetings from the Federal Reserve and the Bank of Japan.
The Dow Jones Industrial Average DJIA, +0.05% rose 9.79 points, or less than 0.1%, to close at 18,129.96.
The S&P 500 index SPX, +0.03% advanced 0.64 points to finish at 2,139.76, led by gains in the health-care and consumer-staples sectors.
The Nasdaq Composite index COMP, +0.12% gained 6.33 points, or 0.1%, to close at 5,241.35.
Shares of MGIC Investment Corp. (NYSE: MTG) opened at $8.07 yesterday and traded in a range between, $7.95 and $8.08, and last traded at $7.97, a drop of $0.05 compared to the previous closing price.
MGIC Investment Corp. (NYSE: MTG) currently has a market cap of 2.71B.
The stock’s average daily volume is 6,236,340 shares out of a total float 316,656,000 and some 2,712,555 shares traded hands yesterday, 36 percent lower than the norm. Investors often use upticks in trading volume to pinpoint substantial volume aggregation or dissemination by institutional investors, so look for trading volume to pick up in the coming days.
While an increase in trading for one day will not mean much, conversely, a trend of heavy trading volume on the buy side over a series of days or weeks expresses a positive cue to market traders that institutions may be moving in, so institutional sponsorship is critical.
Institutional sponsorship is defined by ownership of a stock by mutual funds, banks, pension funds and other large institutions.
Professional investors such as these retain teams of analysts researching thousands of stocks, so it is good validation to see them buying a stock you’re researching.
By identifying trends, moving averages allow traders to make those trends work in their favor and increase the number of successful trades.
Trades for MGIC Investment Corp. (NYSE: MTG) have ranged from $5.36 – 10.05, and the stock now has a 50-day MA of $7.84 and 200-day MA of $7.13. Today’s last price is 0.21% under the 52 week high of $10.05.
Indeed, earnings growth is among the most important things to look at in regards to stock investing and, accordingly, investors watch for companies that have increased their earnings by at least 25% for a 3 year period.
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