MBIA Sees Unusually Large Options Volume (NYSE:MBI)

Key Points

• MBIA saw unusually heavy bearish options activity: Traders purchased 12,896 put options, an 1,833% increase over the average daily volume of 667.
• The stock fell 3.4% to $4.80, near its 52-week low of $4.79, and trades below both its 50-day and 200-day moving averages.
• Analyst sentiment remains mixed, with a consensus “Hold” rating and a $7.00 price target; MBIA also reported a quarterly EPS loss of $0.14, missing estimates by $0.02.

MBIA, Inc. (NYSE:MBI - Get Free Report) was the recipient of some unusual options trading activity on Wednesday. Traders purchased 12,896 put options on the company. This is an increase of 1,833% compared to the average daily volume of 667 put options.

Analyst Upgrades and Downgrades

Several equities research analysts have commented on the stock. Wall Street Zen upgraded shares of MBIA from a "sell" rating to a "hold" rating in a research note on Saturday, May 16th. Keefe, Bruyette & Woods reduced their price objective on MBIA from $7.50 to $7.00 and set an "outperform" rating for the company in a research report on Thursday, August 13th. Finally, Weiss Ratings reissued a "sell (d-)" rating on shares of MBIA in a report on Friday, July 17th. One analyst has rated the stock with a Buy rating and one has assigned a Sell rating to the company. According to MarketBeat, MBIA currently has a consensus rating of "Hold" and a consensus price target of $7.00.

MBIA Trading Down 3.4%

MBI stock traded down $0.17 during trading on Wednesday, hitting $4.80. The company had a trading volume of 402,557 shares, compared to its average volume of 377,232. The business has a 50 day moving average of $5.94 and a 200 day moving average of $6.03. The firm has a market capitalization of $244.51 million, a price-to-earnings ratio of -1.66 and a beta of 1.62. MBIA has a fifty-two week low of $4.79 and a fifty-two week high of $8.26.

MBIA (NYSE:MBI - Get Free Report) last released its earnings results on Thursday, August 6th. The insurance provider reported ($0.14) EPS for the quarter, missing the consensus estimate of ($0.12) by ($0.02). The business had revenue of $27.00 million for the quarter, compared to analysts' expectations of $5.75 million. As a group, equities analysts predict that MBIA will post -0.33 EPS for the current year.

Hedge Funds Weigh In On MBIA

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Legal & General Group Plc bought a new stake in shares of MBIA in the 2nd quarter worth $28,000. Quarry LP bought a new position in MBIA during the third quarter valued at about $37,000. Dynamic Technology Lab Private Ltd acquired a new position in MBIA during the third quarter worth about $77,000. AQR Capital Management LLC acquired a new position in MBIA during the fourth quarter worth about $83,000. Finally, The Manufacturers Life Insurance Company bought a new stake in MBIA in the second quarter worth about $89,000. 60.95% of the stock is owned by institutional investors.

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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