Zacks Investment Research cut shares of MGIC Investment (NYSE:MTG) from a hold rating to a sell rating in a research report released on Tuesday.
According to Zacks, “A competitive environment and pressure to maintain capital at the required level will reduce the MGIC Investment’s capital flexibility. The company has also seen estimates for 2018 and 2019 moving south over the last 30 days. Nonetheless, 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. Also, shares of MGIC Investment have outperformed the industry in a year’s time.”
A number of other research firms also recently issued reports on MTG. Wells Fargo reissued an outperform rating and set a $17.00 price target on shares of MGIC Investment in a research report on Tuesday, November 28th. B. Riley reissued a buy rating and set a $19.00 price target on shares of MGIC Investment in a research report on Thursday, January 18th. Royal Bank of Canada initiated coverage on MGIC Investment in a research report on Wednesday, December 20th. They set an outperform rating and a $18.00 price target on the stock. ValuEngine raised MGIC Investment from a buy rating to a strong-buy rating in a research report on Friday, February 2nd. Finally, Deutsche Bank raised MGIC Investment from a hold rating to a buy rating and increased their price target for the stock from $15.00 to $18.00 in a research report on Monday, January 8th. One equities research analyst has rated the stock with a sell rating, thirteen have assigned a buy rating and one has given a strong buy rating to the company. The stock currently has a consensus rating of Buy and an average price target of $16.44.
MGIC Investment (MTG) opened at $12.25 on Tuesday. The company has a market capitalization of $4,665.45, a price-to-earnings ratio of 9.18, a price-to-earnings-growth ratio of 1.25 and a beta of 2.27. The company has a debt-to-equity ratio of 0.26, a current ratio of 0.18 and a quick ratio of 0.18. MGIC Investment has a 12-month low of $9.68 and a 12-month high of $16.21.
MGIC Investment (NYSE:MTG) last announced its quarterly earnings data on Thursday, January 18th. The insurance provider reported $0.43 EPS for the quarter, beating the Thomson Reuters’ consensus estimate of $0.27 by $0.16. The company had revenue of $271.50 million for the quarter, compared to the consensus estimate of $273.66 million. MGIC Investment had a return on equity of 17.36% and a net margin of 33.37%. MGIC Investment’s quarterly revenue was up 1.9% on a year-over-year basis. During the same quarter in the prior year, the company posted $0.28 EPS. equities research analysts expect that MGIC Investment will post 1.43 earnings per share for the current fiscal year.
A number of hedge funds have recently modified their holdings of MTG. Nationwide Fund Advisors boosted its position in MGIC Investment by 51.1% during the third quarter. Nationwide Fund Advisors now owns 941,246 shares of the insurance provider’s stock valued at $11,794,000 after purchasing an additional 318,331 shares in the last quarter. Aperio Group LLC boosted its position in MGIC Investment by 22.8% during the third quarter. Aperio Group LLC now owns 62,441 shares of the insurance provider’s stock valued at $782,000 after purchasing an additional 11,593 shares in the last quarter. American Century Companies Inc. boosted its position in MGIC Investment by 4.9% during the third quarter. American Century Companies Inc. now owns 317,059 shares of the insurance provider’s stock valued at $3,973,000 after purchasing an additional 14,835 shares in the last quarter. Swiss National Bank boosted its position in MGIC Investment by 9.1% during the third quarter. Swiss National Bank now owns 619,700 shares of the insurance provider’s stock valued at $7,765,000 after purchasing an additional 51,700 shares in the last quarter. Finally, Sei Investments Co. boosted its position in MGIC Investment by 7.0% during the third quarter. Sei Investments Co. now owns 141,481 shares of the insurance provider’s stock valued at $1,773,000 after purchasing an additional 9,283 shares in the last quarter. 92.75% of the stock is currently owned by institutional investors.
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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