BTIG Research Initiates Coverage on MGIC Investment (NYSE:MTG)

Key Points

• BTIG Research initiated coverage of MGIC Investment with a “neutral” rating. The broader analyst consensus remains “Moderate Buy,” with an average price target of $30.60.
• MGIC Investment reported quarterly EPS of $0.87, exceeding the $0.76 consensus estimate, although revenue fell 2.9% year over year to $295.39 million.
• The stock rose 0.8% to $29.69, while institutional investors own a substantial 95.58% of outstanding shares. Two executives recently sold shares under pre-arranged Rule 10b5-1 trading plans.

Research analysts at BTIG Research assumed coverage on shares of MGIC Investment (NYSE:MTG - Get Free Report) in a note issued to investors on Tuesday. The brokerage set a "neutral" rating on the insurance provider's stock.

Several other research analysts have also weighed in on MTG. Weiss Ratings upgraded MGIC Investment from a "buy (b+)" rating to a "buy (a-)" rating in a report on Wednesday, August 19th. Roth Capital restated a "buy" rating and issued a $35.00 price target on shares of MGIC Investment in a report on Thursday, July 30th. Zacks Research raised MGIC Investment from a "hold" rating to a "strong-buy" rating in a research report on Tuesday, August 25th. Royal Bank Of Canada lifted their price objective on MGIC Investment from $28.00 to $32.00 and gave the company a "sector perform" rating in a report on Friday, July 31st. Finally, Keefe, Bruyette & Woods increased their target price on MGIC Investment from $29.00 to $30.00 and gave the stock a "market perform" rating in a research note on Friday, July 31st. Two investment analysts have rated the stock with a Strong Buy rating, one has assigned a Buy rating and five have assigned a Hold rating to the stock. Based on data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average target price of $30.60.

MGIC Investment Trading Up 0.8%

MGIC Investment stock traded up $0.24 during midday trading on Tuesday, hitting $29.69. 32,471 shares of the stock were exchanged, compared to its average volume of 2,003,090. The stock has a market capitalization of $6.09 billion, a PE ratio of 9.25, a P/E/G ratio of 0.75 and a beta of 0.65. The company has a fifty day simple moving average of $30.37 and a two-hundred day simple moving average of $27.99. The company has a quick ratio of 1.19, a current ratio of 1.19 and a debt-to-equity ratio of 0.13. MGIC Investment has a 52 week low of $24.69 and a 52 week high of $31.89.

MGIC Investment (NYSE:MTG - Get Free Report) last posted its earnings results on Wednesday, July 29th. The insurance provider reported $0.87 earnings per share for the quarter, topping the consensus estimate of $0.76 by $0.11. MGIC Investment had a net margin of 59.20% and a return on equity of 13.90%. The company had revenue of $295.39 million for the quarter, compared to analyst estimates of $297.54 million. During the same period last year, the business posted $0.82 earnings per share. The business's revenue for the quarter was down 2.9% compared to the same quarter last year. Equities research analysts anticipate that MGIC Investment will post 3.24 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, EVP Paula Maggio sold 20,000 shares of the stock in a transaction on Friday, August 7th. The shares were sold at an average price of $30.30, for a total transaction of $606,000.00. Following the completion of the transaction, the executive vice president owned 149,620 shares in the company, valued at approximately $4,533,486. This represents a 11.79% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, COO Salvatore Miosi sold 30,000 shares of the firm's stock in a transaction on Tuesday, September 1st. The shares were sold at an average price of $30.73, for a total transaction of $921,900.00. Following the completion of the transaction, the chief operating officer directly owned 470,951 shares of the company's stock, valued at approximately $14,472,324.23. This trade represents a 5.99% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 1.34% of the company's stock.

Institutional Trading of MGIC Investment

A number of hedge funds and other institutional investors have recently modified their holdings of MTG. BlackRock Inc. acquired a new position in MGIC Investment during the second quarter valued at approximately $618,467,000. Geode Capital Management LLC raised its stake in shares of MGIC Investment by 2.8% during the 4th quarter. Geode Capital Management LLC now owns 5,371,470 shares of the insurance provider's stock worth $163,368,000 after purchasing an additional 146,589 shares in the last quarter. Allianz Asset Management GmbH raised its stake in shares of MGIC Investment by 1.0% during the 4th quarter. Allianz Asset Management GmbH now owns 5,010,157 shares of the insurance provider's stock worth $146,397,000 after purchasing an additional 48,064 shares in the last quarter. Caisse de depot et placement du Quebec acquired a new stake in shares of MGIC Investment in the 2nd quarter valued at approximately $98,074,000. Finally, Norges Bank acquired a new stake in shares of MGIC Investment in the 4th quarter valued at approximately $96,248,000. Institutional investors and hedge funds own 95.58% of the company's stock.

About MGIC Investment

MGIC Investment Corporation NYSE: MTG is a holding company whose principal subsidiary is Mortgage Guaranty Insurance Corporation (MGIC), a provider of private mortgage insurance in the United States. MGIC's insurance helps lenders manage the risk associated with residential mortgages made to borrowers who have limited down payments, allowing qualified homebuyers to obtain financing with less than 20% down.

MGIC primarily offers primary mortgage insurance to mortgage lenders, banks, credit unions and other residential lending institutions.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.