“We prefer MTG as a way to play the housing recovery among legacy mortgage insurers. MTG is unencumbered by nonmortgage insurance business lines that confuse the story and the company has experienced upward estimate revisions driven by lower loss estimates, a trend that we think is more sustainable at MTG. With relationships with about 5,000 lenders and servicers, MTG has the largest customer base in the industry. The legacy book of MGIC is helped by home price appreciation, which acts as a mitigating factor in loss severity. On the new business front, MTG has pivoted toward purchase mortgages, which is a positive since purchase mortgages are 3x4x more likely to have private mortgage insurance and that refinancing activity leads to higher cancellation rates and lower persistency. MTG also has an industryleading expense ratio which should allow margins to expand.”,” Wells Fargo & Company’s analyst wrote.
Several other research analysts also recently commented on MTG. BidaskClub raised shares of MGIC Investment from a hold rating to a buy rating in a research note on Friday, August 18th. Zacks Investment Research downgraded shares of MGIC Investment from a buy rating to a hold rating in a research note on Wednesday, October 4th. MKM Partners lifted their target price on shares of MGIC Investment to $16.00 and gave the stock a buy rating in a research note on Thursday, October 19th. FBR & Co reiterated a buy rating on shares of MGIC Investment in a report on Wednesday, October 18th. Finally, Compass Point reiterated a buy rating and issued a $15.25 price target (up previously from $13.00) on shares of MGIC Investment in a report on Wednesday, October 11th. Two research analysts have rated the stock with a hold rating, eleven have assigned a buy rating and one has given a strong buy rating to the company. The company has a consensus rating of Buy and a consensus target price of $14.34.
MGIC Investment (MTG) opened at $15.38 on Friday. The company has a quick ratio of 0.27, a current ratio of 0.27 and a debt-to-equity ratio of 0.27. MGIC Investment has a one year low of $9.68 and a one year high of $15.55. The company has a market cap of $5,699.32, a price-to-earnings ratio of 12.61, a P/E/G ratio of 1.50 and a beta of 2.26.
MGIC Investment (NYSE:MTG) last issued its earnings results on Wednesday, October 18th. The insurance provider reported $0.32 EPS for the quarter, topping the consensus estimate of $0.26 by $0.06. MGIC Investment had a net margin of 41.08% and a return on equity of 16.41%. The company had revenue of $270.30 million for the quarter, compared to the consensus estimate of $267.85 million. During the same period in the previous year, the firm earned $0.14 earnings per share. The firm’s revenue for the quarter was down 1.3% on a year-over-year basis. analysts anticipate that MGIC Investment will post 1.21 EPS for the current year.
A number of large investors have recently added to or reduced their stakes in the stock. Vanguard Group Inc. boosted its holdings in shares of MGIC Investment by 9.9% during the 2nd quarter. Vanguard Group Inc. now owns 34,753,956 shares of the insurance provider’s stock valued at $389,244,000 after buying an additional 3,120,511 shares in the last quarter. BlackRock Inc. boosted its holdings in shares of MGIC Investment by 1.6% during the 2nd quarter. BlackRock Inc. now owns 25,319,890 shares of the insurance provider’s stock valued at $283,585,000 after buying an additional 397,421 shares in the last quarter. Bank of New York Mellon Corp boosted its holdings in shares of MGIC Investment by 0.9% during the 3rd quarter. Bank of New York Mellon Corp now owns 13,311,911 shares of the insurance provider’s stock valued at $166,798,000 after buying an additional 114,080 shares in the last quarter. State Street Corp boosted its holdings in shares of MGIC Investment by 0.7% during the 2nd quarter. State Street Corp now owns 12,909,795 shares of the insurance provider’s stock valued at $144,591,000 after buying an additional 86,987 shares in the last quarter. Finally, LSV Asset Management boosted its holdings in shares of MGIC Investment by 4.1% during the 2nd quarter. LSV Asset Management now owns 12,560,022 shares of the insurance provider’s stock valued at $140,672,000 after buying an additional 490,096 shares in the last quarter. Institutional investors and hedge funds own 91.31% of the company’s stock.
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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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