Bank of America cut shares of MGIC Investment (NYSE:MTG) from a neutral rating to an underperform rating in a research note released on Wednesday morning, MarketBeat Ratings reports.
Several other brokerages have also recently issued reports on MTG. Barclays reduced their price objective on MGIC Investment from $18.00 to $16.00 and set a buy rating for the company in a report on Wednesday, April 11th. Zacks Investment Research cut MGIC Investment from a buy rating to a hold rating in a report on Monday, March 12th. Royal Bank of Canada cut MGIC Investment from an outperform rating to a sector perform rating and lifted their price objective for the stock from $12.00 to $20.00 in a report on Tuesday, April 10th. Wells Fargo & Co reaffirmed a buy rating on shares of MGIC Investment in a report on Thursday, March 8th. Finally, ValuEngine cut MGIC Investment from a strong-buy rating to a buy rating in a report on Monday, April 9th. One research analyst has rated the stock with a sell rating, four have assigned a hold rating and eleven have issued a buy rating to the stock. The company has an average rating of Buy and an average price target of $15.87.
MTG opened at $11.07 on Wednesday. The company has a quick ratio of 0.25, a current ratio of 0.25 and a debt-to-equity ratio of 0.26. The company has a market capitalization of $4.16 billion, a PE ratio of 8.14, a price-to-earnings-growth ratio of 1.12 and a beta of 1.95. MGIC Investment has a 12 month low of $9.97 and a 12 month high of $16.21.
MGIC Investment (NYSE:MTG) last posted its quarterly earnings results on Wednesday, April 18th. The insurance provider reported $0.38 EPS for the quarter, beating the consensus estimate of $0.35 by $0.03. The business had revenue of $265.80 million during the quarter, compared to analysts’ expectations of $273.94 million. MGIC Investment had a return on equity of 17.43% and a net margin of 38.25%. The company’s quarterly revenue was up 1.9% compared to the same quarter last year. During the same period last year, the firm earned $0.31 EPS. research analysts forecast that MGIC Investment will post 1.42 EPS for the current fiscal year.
MGIC Investment declared that its board has authorized a stock repurchase program on Thursday, April 26th that authorizes the company to buyback $200.00 million in shares. This buyback authorization authorizes the insurance provider to reacquire up to 5.3% of its shares through open market purchases. Shares buyback programs are usually a sign that the company’s board believes its stock is undervalued.
A number of institutional investors have recently added to or reduced their stakes in MTG. Point72 Asset Management L.P. purchased a new position in MGIC Investment during the first quarter worth $64,928,000. Old Mutual Global Investors UK Ltd. purchased a new position in MGIC Investment during the first quarter worth $55,644,000. Eaton Vance Management purchased a new position in MGIC Investment during the first quarter worth $29,275,000. Russell Investments Group Ltd. increased its position in MGIC Investment by 75.6% during the first quarter. Russell Investments Group Ltd. now owns 2,373,084 shares of the insurance provider’s stock worth $30,837,000 after buying an additional 1,021,359 shares in the last quarter. Finally, Investec Asset Management LTD increased its position in MGIC Investment by 88.8% during the fourth quarter. Investec Asset Management LTD now owns 1,914,606 shares of the insurance provider’s stock worth $27,015,000 after buying an additional 900,552 shares in the last quarter. 91.32% of the stock is owned by institutional investors.
About MGIC Investment
MGIC Investment Corporation, through its subsidiaries, provides private mortgage insurance and ancillary services to lenders and government sponsored entities in the United States. The company offers primary mortgage insurance that provides mortgage default protection on individual loans, as well as covers unpaid loan principal, delinquent interest, and various expenses associated with the default and subsequent foreclosure.
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