Valueworks LLC Buys Shares of 1,967,228 MBIA, Inc. $MBI

Key Points

• Valueworks LLC acquired 1,967,228 MBIA shares worth approximately $12.8 million, giving it about 3.86% of the company and making MBIA 2.7% of its portfolio.
• Institutional ownership remains high at 60.95%, with several other investment firms also establishing new positions in MBIA during the second quarter.
• Analyst sentiment is mixed, resulting in a consensus “Hold” rating and a $7.00 price target. MBIA recently missed quarterly EPS expectations, reporting a loss of $0.14 per share versus the expected $0.12 loss.

Valueworks LLC bought a new position in MBIA, Inc. (NYSE:MBI - Free Report) in the second quarter, according to its most recent disclosure with the SEC. The firm bought 1,967,228 shares of the insurance provider's stock, valued at approximately $12,826,000. MBIA comprises approximately 2.7% of Valueworks LLC's portfolio, making the stock its 17th biggest position. Valueworks LLC owned about 3.86% of MBIA as of its most recent SEC filing.

Several other institutional investors have also modified their holdings of MBI. Empowered Funds LLC acquired a new position in shares of MBIA during the 2nd quarter valued at about $210,000. Bank of America Corp DE acquired a new stake in MBIA during the second quarter worth about $500,000. Bluefin Capital Management LLC purchased a new position in MBIA during the second quarter worth about $750,000. Legal & General Group Plc acquired a new position in MBIA in the 2nd quarter valued at about $28,000. Finally, The Manufacturers Life Insurance Company acquired a new position in MBIA in the 2nd quarter valued at about $89,000. Hedge funds and other institutional investors own 60.95% of the company's stock.

Wall Street Analysts Forecast Growth

A number of brokerages have recently issued reports on MBI. Keefe, Bruyette & Woods cut their price target on shares of MBIA from $7.50 to $7.00 and set an "outperform" rating for the company in a report on Thursday, August 13th. Weiss Ratings reiterated a "sell (d-)" rating on shares of MBIA in a report on Friday, July 17th. Finally, Wall Street Zen upgraded MBIA from a "sell" rating to a "hold" rating in a report on Saturday, May 16th. One equities research analyst has rated the stock with a Buy rating and one has issued a Sell rating to the company. According to MarketBeat, the company has a consensus rating of "Hold" and a consensus price target of $7.00.

MBIA Price Performance

NYSE MBI opened at $4.79 on Friday. The company has a market cap of $244.21 million, a P/E ratio of -1.66 and a beta of 1.62. The stock has a 50-day moving average of $5.76 and a two-hundred day moving average of $5.95. MBIA, Inc. has a 1-year low of $4.72 and a 1-year high of $8.25.

MBIA (NYSE:MBI - Get Free Report) last issued its quarterly earnings results on Thursday, August 6th. The insurance provider reported ($0.14) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.12) by ($0.02). The firm had revenue of $27.00 million for the quarter, compared to analyst estimates of $5.75 million. On average, analysts anticipate that MBIA, Inc. will post -0.33 EPS for the current fiscal year.

MBIA Company Profile

MBIA Inc is a financial guarantee insurance company specializing in credit enhancement and risk mitigation solutions for public finance and structured finance transactions. The company provides guaranty insurance for municipal bonds, asset-backed securities and other credit-sensitive obligations, protecting investors against the risk of payment default. Through its core insurance subsidiary, MBIA Insurance Corp., the firm offers financial guarantees, reinsurance support and customized credit solutions designed to improve the marketability and pricing of debt instruments.

Founded in 1973 as the Municipal Bond Insurance Association, MBIA built its reputation by insuring U.S.

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