Zacks Research Upgrades MGIC Investment (NYSE:MTG) to "Strong-Buy"

Key Points

• Zacks Research upgraded MGIC Investment from “hold” to “strong buy.” Across analysts, the stock carries a “Moderate Buy” consensus rating with an average price target of $30.60.
• MGIC Investment shares opened at $31.27, near their 52-week high of $31.89. The company’s latest quarterly earnings were $0.87 per share, beating estimates of $0.76, while revenue of $295.39 million fell slightly short of expectations.
• Institutional investors own approximately 95.58% of MGIC Investment’s stock, while insiders sold 70,937 shares worth about $1.9 million during the last quarter under pre-arranged trading plans.

MGIC Investment (NYSE:MTG - Get Free Report) was upgraded by research analysts at Zacks Research from a "hold" rating to a "strong-buy" rating in a research note issued to investors on Tuesday,Zacks.com reports.

A number of other equities research analysts have also recently weighed in on the company. Weiss Ratings raised MGIC Investment from a "buy (b+)" rating to a "buy (a-)" rating in a report on Wednesday, August 19th. Barclays cut their target price on MGIC Investment from $29.00 to $28.00 and set an "equal weight" rating on the stock in a research note on Friday, May 1st. Royal Bank Of Canada boosted their price target on MGIC Investment from $28.00 to $32.00 and gave the stock a "sector perform" rating in a research report on Friday, July 31st. Roth Capital reissued a "buy" rating and issued a $35.00 price target on shares of MGIC Investment in a research note on Thursday, July 30th. Finally, Keefe, Bruyette & Woods increased their price target 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 analysts have rated the stock with a Strong Buy rating, one has assigned a Buy rating and four have issued a Hold rating to the stock. Based on data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average target price of $30.60.

MGIC Investment Stock Up 0.1%

MGIC Investment stock opened at $31.27 on Tuesday. The company has a 50-day simple moving average of $29.31 and a 200-day simple moving average of $27.50. The firm has a market capitalization of $6.41 billion, a P/E ratio of 9.77, a P/E/G ratio of 0.79 and a beta of 0.66. The company has a debt-to-equity ratio of 0.13, a quick ratio of 1.19 and a current ratio of 1.19. MGIC Investment has a one year low of $24.69 and a one year high of $31.89.

MGIC Investment (NYSE:MTG - Get Free Report) last issued its quarterly earnings data on Wednesday, July 29th. The insurance provider reported $0.87 earnings per share for the quarter, beating the consensus estimate of $0.76 by $0.11. The firm had revenue of $295.39 million for the quarter, compared to the consensus estimate of $297.54 million. MGIC Investment had a net margin of 59.20% and a return on equity of 13.90%. MGIC Investment's quarterly revenue was down 2.9% compared to the same quarter last year. During the same period last year, the firm posted $0.82 EPS. As a group, equities analysts expect that MGIC Investment will post 3.24 earnings per share for the current year.

Insider Activity

In other news, EVP Paula C. Maggio sold 20,000 shares of the stock in a transaction on Friday, August 7th. The stock was sold at an average price of $30.30, for a total transaction of $606,000.00. Following the completion of the sale, 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 position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible 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 business's stock in a transaction on Monday, June 8th. The stock was sold at an average price of $25.38, for a total value of $761,400.00. Following the sale, the chief operating officer directly owned 560,951 shares in the company, valued at $14,236,936.38. This trade represents a 5.08% decrease in their ownership of the stock. 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. Over the last quarter, insiders sold 70,937 shares of company stock worth $1,902,340. 1.34% of the stock is owned by company insiders.

Institutional Trading of MGIC Investment

A number of hedge funds have recently bought and sold shares of the company. Jefferies Financial Group Inc. grew its position in MGIC Investment by 245.3% during the fourth quarter. Jefferies Financial Group Inc. now owns 364,650 shares of the insurance provider's stock valued at $10,655,000 after purchasing an additional 259,039 shares in the last quarter. Geode Capital Management LLC grew its holdings 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 valued at $163,368,000 after acquiring an additional 146,589 shares in the last quarter. Arbejdsmarkedets Tillaegspension acquired a new position in shares of MGIC Investment in the fourth quarter worth $24,456,000. Norges Bank purchased a new stake in shares of MGIC Investment during the fourth quarter worth $96,248,000. Finally, Hsbc Holdings PLC boosted its position in MGIC Investment by 24.5% during the fourth quarter. Hsbc Holdings PLC now owns 207,412 shares of the insurance provider's stock valued at $6,089,000 after purchasing an additional 40,751 shares during the last quarter. 95.58% of the stock is owned by hedge funds and other institutional investors.

About MGIC Investment

MGIC Investment Corporation NYSE: MTG is a leading provider of private mortgage insurance in the United States. Established in 1957 as the nation's first private mortgage insurer, MGIC helps lenders manage credit risk and facilitates homeownership by protecting mortgage loans against default. Headquartered in Milwaukee, Wisconsin, the company operates through its principal subsidiary, Mortgage Guaranty Insurance Corporation, and maintains relationships with a broad network of originators and servicers nationwide.

The company's primary business activity involves issuing mortgage insurance policies that enable borrowers to purchase homes with down payments below traditional lending thresholds.

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