MGIC Investment (NYSE:MTG) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research report issued to clients and investors 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 equities research analysts have also recently issued reports on MTG. Wells Fargo reissued a “buy” rating on shares of MGIC Investment in a research note on Wednesday, March 14th. Macquarie began coverage on shares of MGIC Investment in a research note on Wednesday, March 14th. They issued an “outperform” rating and a $17.00 price target on the stock. ValuEngine cut shares of MGIC Investment from a “strong-buy” rating to a “buy” rating in a research note on Wednesday, January 10th. Deutsche Bank raised shares of MGIC Investment from a “hold” rating to a “buy” rating and lifted their price target for the company from $15.00 to $18.00 in a research note on Monday, January 8th. Finally, B. Riley reaffirmed a “buy” rating and set a $19.00 target price on shares of MGIC Investment in a research note on Thursday, January 18th. One investment analyst has rated the stock with a sell rating, thirteen have issued a buy rating and one has given a strong buy rating to the stock. The stock has an average rating of “Buy” and a consensus target price of $16.44.
MGIC Investment (NYSE:MTG) last released its quarterly earnings results on Thursday, January 18th. The insurance provider reported $0.43 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.27 by $0.16. MGIC Investment had a net margin of 33.37% and a return on equity of 17.36%. The firm had revenue of $271.50 million for the quarter, compared to analysts’ expectations of $273.66 million. During the same quarter last year, the company earned $0.28 EPS. The firm’s revenue for the quarter was up 1.9% compared to the same quarter last year. equities analysts expect that MGIC Investment will post 1.43 earnings per share for the current fiscal year.
A number of institutional investors and hedge funds have recently made changes to their positions in the business. Xact Kapitalforvaltning AB acquired a new stake in MGIC Investment during the 4th quarter worth $451,000. Her Majesty the Queen in Right of the Province of Alberta as represented by Alberta Investment Management Corp raised its holdings in shares of MGIC Investment by 57.7% during the 4th quarter. Her Majesty the Queen in Right of the Province of Alberta as represented by Alberta Investment Management Corp now owns 220,816 shares of the insurance provider’s stock worth $3,116,000 after acquiring an additional 80,800 shares during the period. MetLife Investment Advisors LLC purchased a new position in shares of MGIC Investment during the 4th quarter worth $2,339,000. Jump Trading LLC purchased a new position in shares of MGIC Investment during the 4th quarter worth $223,000. Finally, Jane Street Group LLC raised its holdings in shares of MGIC Investment by 110.8% during the 4th quarter. Jane Street Group LLC now owns 55,306 shares of the insurance provider’s stock worth $780,000 after acquiring an additional 29,074 shares during the period. 92.75% of the stock is currently owned by institutional investors.
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MGIC Investment Company Profile
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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