MGIC Investment (NYSE:MTG) Downgraded to Underperform Rating by Bank of America

Bank of America lowered shares of MGIC Investment (NYSE:MTG) from a buy rating to an underperform rating in a research report released on Monday morning, MarketBeat reports. The firm currently has $25.00 price objective on the insurance provider’s stock, down from their previous price objective of $26.00.

Other analysts have also recently issued reports about the company. Barclays upped their target price on MGIC Investment from $23.00 to $24.00 and gave the company an “equal weight” rating in a research report on Tuesday, October 8th. Royal Bank of Canada reduced their price objective on MGIC Investment from $28.00 to $27.00 and set a “sector perform” rating for the company in a research note on Wednesday, November 6th. One equities research analyst has rated the stock with a sell rating, three have assigned a hold rating and three have given a buy rating to the stock. Based on data from MarketBeat, MGIC Investment presently has a consensus rating of “Hold” and a consensus price target of $25.43.

MGIC Investment Price Performance

MTG stock opened at $24.63 on Monday. The business has a 50 day moving average price of $25.28 and a 200 day moving average price of $23.93. The company has a quick ratio of 1.25, a current ratio of 1.25 and a debt-to-equity ratio of 0.12. The stock has a market cap of $6.24 billion, a price-to-earnings ratio of 8.67, a PEG ratio of 1.82 and a beta of 1.27. MGIC Investment has a fifty-two week low of $18.04 and a fifty-two week high of $26.56.

MGIC Investment (NYSE:MTG) last issued its earnings results on Monday, November 4th. The insurance provider reported $0.77 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.66 by $0.11. MGIC Investment had a net margin of 64.09% and a return on equity of 14.99%. The business had revenue of $306.65 million during the quarter, compared to analysts’ expectations of $306.03 million. During the same quarter in the prior year, the business posted $0.64 EPS. The company’s revenue for the quarter was up 3.4% on a year-over-year basis. Equities research analysts anticipate that MGIC Investment will post 2.85 earnings per share for the current fiscal year.

MGIC Investment Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Thursday, November 21st. Shareholders of record on Thursday, November 7th were paid a $0.13 dividend. The ex-dividend date of this dividend was Thursday, November 7th. This represents a $0.52 annualized dividend and a dividend yield of 2.11%. MGIC Investment’s dividend payout ratio (DPR) is currently 18.31%.

Hedge Funds Weigh In On MGIC Investment

A number of hedge funds and other institutional investors have recently bought and sold shares of the company. Dimensional Fund Advisors LP boosted its holdings in MGIC Investment by 3.8% in the 2nd quarter. Dimensional Fund Advisors LP now owns 15,145,206 shares of the insurance provider’s stock valued at $326,375,000 after purchasing an additional 556,859 shares in the last quarter. State Street Corp lifted its holdings in shares of MGIC Investment by 0.8% in the 3rd quarter. State Street Corp now owns 9,092,453 shares of the insurance provider’s stock valued at $232,767,000 after buying an additional 73,851 shares during the period. American Century Companies Inc. boosted its stake in shares of MGIC Investment by 1.5% in the second quarter. American Century Companies Inc. now owns 3,395,208 shares of the insurance provider’s stock valued at $73,167,000 after buying an additional 50,307 shares in the last quarter. Franklin Resources Inc. grew its holdings in MGIC Investment by 6.5% during the third quarter. Franklin Resources Inc. now owns 1,621,838 shares of the insurance provider’s stock worth $41,836,000 after acquiring an additional 98,369 shares during the period. Finally, Los Angeles Capital Management LLC raised its position in MGIC Investment by 0.3% in the second quarter. Los Angeles Capital Management LLC now owns 1,438,727 shares of the insurance provider’s stock worth $31,005,000 after acquiring an additional 4,602 shares in the last quarter. 95.58% of the stock is currently owned by hedge funds and other institutional investors.

MGIC Investment Company Profile

MGIC Investment Corporation, through its subsidiaries, provides private mortgage insurance, other mortgage credit risk management solutions, and ancillary services to lenders and government sponsored entities in the United States, the District of Columbia, Puerto Rico, and Guam. The company offers primary mortgage insurance that provides mortgage default protection on individual loans, as well as covers unpaid loan principal, delinquent interest, and various expenses associated with the default and subsequent foreclosure.