MGIC Investment (NYSE:MTG) Stock Rating Lowered by Zacks Research

Key Points

• Zacks Research downgraded MGIC Investment from “strong buy” to “hold.” The broader analyst consensus is also “hold,” with an average price target of $30.80.
• MGIC Investment reported quarterly EPS of $0.87, exceeding estimates of $0.76, while revenue of $295.39 million fell slightly short of expectations and declined 2.9% year over year.
• Company insiders sold 217,114 shares worth approximately $5.9 million over the past 90 days, while institutional investors own 95.58% of the stock.

MGIC Investment (NYSE:MTG - Get Free Report) was downgraded by investment analysts at Zacks Research from a "strong-buy" rating to a "hold" rating in a report released on Monday, Zacks reports.

Several other research analysts have also commented on MTG. Royal Bank Of Canada boosted their price objective on shares of MGIC Investment from $28.00 to $32.00 and gave the stock a "sector perform" rating in a research note on Friday, July 31st. Barclays increased their target price on shares of MGIC Investment from $28.00 to $29.00 and gave the company an "equal weight" rating in a research report on Monday, October 5th. Roth Capital restated a "buy" rating and issued a $35.00 target price on shares of MGIC Investment in a research note on Thursday, July 30th. Keefe, Bruyette & Woods lifted their price target on shares of MGIC Investment from $29.00 to $30.00 and gave the stock a "market perform" rating in a report on Friday, July 31st. Finally, Weiss Ratings raised shares of MGIC Investment from a "buy (b+)" rating to a "buy (a-)" rating in a report on Wednesday, August 19th. One equities research analyst has rated the stock with a Strong Buy rating, one has issued a Buy rating and six have assigned a Hold rating to the company. According to MarketBeat, the company currently has a consensus rating of "Hold" and an average target price of $30.80.

MGIC Investment Price Performance

Shares of MTG stock opened at $28.14 on Monday. The stock's 50-day moving average is $29.45 and its 200 day moving average is $28.21. MGIC Investment has a 1-year low of $24.69 and a 1-year high of $31.89. The company has a debt-to-equity ratio of 0.13, a current ratio of 1.19 and a quick ratio of 1.19. The company has a market cap of $5.77 billion, a P/E ratio of 8.64, a PEG ratio of 0.70 and a beta of 0.67.

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

Insiders Place Their Bets

In other news, EVP Paula C. Maggio sold 20,000 shares of the company's stock in a transaction dated Friday, August 7th. The shares were sold at an average price of $30.30, for a total transaction of $606,000.00. Following the transaction, the executive vice president owned 149,620 shares in the company, valued at $4,533,486. This represents a 11.79% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, COO Salvatore A. Miosi sold 30,000 shares of the company's stock in a transaction dated Thursday, October 1st. The shares were sold at an average price of $26.06, for a total transaction of $781,800.00. Following the transaction, the chief operating officer owned 440,951 shares in the company, valued at approximately $11,491,183.06. This trade represents a 6.37% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders sold 217,114 shares of company stock valued at $5,906,200. 1.34% of the stock is currently owned by corporate insiders.

Institutional Trading of MGIC Investment

Institutional investors have recently bought and sold shares of the stock. Elevation Wealth Partners LLC lifted its position in MGIC Investment by 345.6% during the third quarter. Elevation Wealth Partners LLC now owns 1,123 shares of the insurance provider's stock valued at $29,000 after purchasing an additional 871 shares during the period. V Square Quantitative Management LLC boosted its holdings in MGIC Investment by 91.2% in the third quarter. V Square Quantitative Management LLC now owns 1,363 shares of the insurance provider's stock valued at $35,000 after purchasing an additional 650 shares during the last quarter. Mitsubishi UFJ Asset Management Co. Ltd. purchased a new stake in MGIC Investment in the second quarter valued at $62,000. Harbor Investment Advisory LLC grew its position in MGIC Investment by 613.0% during the 2nd quarter. Harbor Investment Advisory LLC now owns 2,574 shares of the insurance provider's stock worth $73,000 after purchasing an additional 2,213 shares during the period. Finally, Root Financial Partners LLC grew its position in MGIC Investment by 100.7% during the 1st quarter. Root Financial Partners LLC now owns 3,022 shares of the insurance provider's stock worth $79,000 after purchasing an additional 1,516 shares during the period. 95.58% of the stock is currently owned by institutional investors and hedge funds.

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 protect mortgage lenders and investors against losses when borrowers default, enabling qualified homebuyers to obtain mortgages with smaller down payments.

MGIC primarily offers primary mortgage insurance for residential loans, working with mortgage lenders, banks and other housing-finance institutions.

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