Stock Traders Buy High Volume of MBIA Put Options (NYSE:MBI)

MBIA Inc. (NYSE:MBI) was the target of some unusual options trading on Thursday. Traders purchased 45,386 put options on the company. This represents an increase of 6,042% compared to the average daily volume of 739 put options.

In related news, Director Joseph W. Brown purchased 50,000 shares of the company’s stock in a transaction dated Tuesday, December 19th. The stock was acquired at an average cost of $7.25 per share, for a total transaction of $362,500.00. Following the completion of the transaction, the director now directly owns 2,399,634 shares of the company’s stock, valued at $17,397,346.50. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. 4.11% of the stock is owned by corporate insiders.

Several hedge funds and other institutional investors have recently made changes to their positions in the company. Financial Partners Capital Management LLC increased its holdings in MBIA by 12.4% in the second quarter. Financial Partners Capital Management LLC now owns 11,294 shares of the insurance provider’s stock valued at $107,000 after buying an additional 1,250 shares during the last quarter. Tower Research Capital LLC TRC purchased a new position in MBIA in the second quarter valued at $116,000. Nine Chapters Capital Management LLC purchased a new position in MBIA in the third quarter valued at $111,000. Intl Fcstone Inc. purchased a new position in MBIA in the second quarter valued at $127,000. Finally, Prudential Financial Inc. increased its holdings in MBIA by 2.7% in the second quarter. Prudential Financial Inc. now owns 14,415 shares of the insurance provider’s stock valued at $136,000 after buying an additional 380 shares during the last quarter.

Shares of MBIA (MBI) traded up $0.75 during midday trading on Wednesday, hitting $8.41. The stock had a trading volume of 5,273,010 shares, compared to its average volume of 1,529,942. The firm has a market capitalization of $671.98, a PE ratio of -0.57 and a beta of 2.36. The company has a debt-to-equity ratio of 1.94, a quick ratio of 2.09 and a current ratio of 2.09. MBIA has a twelve month low of $6.04 and a twelve month high of $10.89.

MBIA announced that its Board of Directors has initiated a stock repurchase plan on Tuesday, November 7th that authorizes the company to repurchase $250.00 million in outstanding shares. This repurchase authorization authorizes the insurance provider to repurchase shares of its stock through open market purchases. Stock repurchase plans are usually an indication that the company’s management believes its shares are undervalued.

A number of research analysts recently commented on the company. ValuEngine upgraded MBIA from a “hold” rating to a “buy” rating in a report on Friday, December 1st. Keefe, Bruyette & Woods started coverage on MBIA in a report on Monday, February 5th. They issued a “market perform” rating on the stock. One equities research analyst has rated the stock with a sell rating, two have assigned a hold rating and two have issued a buy rating to the stock. The company has an average rating of “Hold” and a consensus price target of $14.50.

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MBIA Company Profile

MBIA Inc is a holding company. The Company, through its subsidiaries, is engaged in the financial guarantee insurance businesses in the industry. The Company manages its business within three segments: United States (U.S.) public finance insurance; corporate, and international and structured finance insurance.

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