Today: MGIC Investment Corp. (MTG) Receives “Hold” Rating from Credit Suisse Group AG

Today: MGIC Investment Corp. (MTG) Receives “Hold” Rating from Credit Suisse Group AG

MGIC Investment Corp. (NYSE:MTG)‘s stock had its “hold” rating restated by stock analysts at Credit Suisse Group AG in a report released on Monday. They currently have a $10.00 target price on the stock. Credit Suisse Group AG’s price target would indicate a potential upside of 8.46% from the stock’s previous close.

The analysts wrote, “We are increasing our 2017-18 EPS estimates to reflect our updated share repurchase outlook, and are raising our target price to $10 (from $8). We see three paths to be able to fund the buyback: 1. Cash on hand: As of 9/30, MTG had $330 million of hold co cash, of which $145 million is being held for the 2017 debt maturity and $40 million for completing the buyback as part of the 3Q debt issuance/convert repurchase. This leaves MTG with about $145 million of available cash. With no near-term debt maturities (2023 is next), and the dividend from the MI subsidiary covering interest, MTG has limited needs to hold substantial hold co cash.””

Other equities analysts also recently issued reports about the stock. Deutsche Bank AG restated a “hold” rating on shares of MGIC Investment Corp. in a report on Saturday, August 6th. Compass Point downgraded shares of MGIC Investment Corp. from a “buy” rating to a “hold” rating and set a $10.00 target price on the stock. in a report on Wednesday, October 19th. Keefe, Bruyette & Woods boosted their target price on shares of MGIC Investment Corp. from $9.00 to $9.50 and gave the stock an “outperform” rating in a report on Tuesday, October 4th. Zacks Investment Research downgraded shares of MGIC Investment Corp. from a “strong-buy” rating to a “hold” rating in a report on Tuesday, September 20th. Finally, Bank of America Corp. began coverage on shares of MGIC Investment Corp. in a report on Monday, October 17th. They set a “buy” rating and a $10.00 target price on the stock. Four investment analysts have rated the stock with a hold rating and seven have assigned a buy rating to the stock. The company currently has a consensus rating of “Buy” and an average target price of $9.89.

MGIC Investment Corp. (NYSE:MTG) opened at 9.22 on Monday. The firm has a market cap of $3.14 billion, a PE ratio of 11.14 and a beta of 2.41. MGIC Investment Corp. has a 52 week low of $5.36 and a 52 week high of $9.66. The stock has a 50 day moving average of $8.49 and a 200-day moving average of $7.46.

MGIC Investment Corp. (NYSE:MTG) last posted its quarterly earnings data on Tuesday, October 18th. The company reported $0.25 earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of $0.19 by $0.06. MGIC Investment Corp. had a net margin of 32.02% and a return on equity of 16.64%. The company had revenue of $273.90 million for the quarter, compared to the consensus estimate of $259.57 million. During the same period last year, the company earned $0.29 earnings per share. The firm’s revenue was up 1.6% compared to the same quarter last year. Analysts expect that MGIC Investment Corp. will post $0.86 earnings per share for the current year.

Large investors have recently made changes to their positions in the stock. Senator Investment Group LP boosted its stake in shares of MGIC Investment Corp. by 14.6% in the second quarter. Senator Investment Group LP now owns 11,000,000 shares of the company’s stock worth $65,450,000 after buying an additional 1,400,000 shares during the last quarter. Platinum Investment Management Ltd. boosted its stake in MGIC Investment Corp. by 5.3% in the second quarter. Platinum Investment Management Ltd. now owns 10,097,304 shares of the company’s stock valued at $60,078,000 after buying an additional 504,622 shares in the last quarter. BlackRock Fund Advisors boosted its stake in MGIC Investment Corp. by 6.7% in the third quarter. BlackRock Fund Advisors now owns 9,104,726 shares of the company’s stock valued at $72,838,000 after buying an additional 574,189 shares in the last quarter. BlackRock Institutional Trust Company N.A. boosted its stake in MGIC Investment Corp. by 3.8% in the third quarter. BlackRock Institutional Trust Company N.A. now owns 9,099,416 shares of the company’s stock valued at $72,795,000 after buying an additional 333,023 shares in the last quarter. Finally, Marshall Wace LLP boosted its stake in MGIC Investment Corp. by 13.3% in the second quarter. Marshall Wace LLP now owns 7,302,578 shares of the company’s stock valued at $43,450,000 after buying an additional 858,282 shares in the last quarter. 89.17% of the stock is owned by institutional investors.

About MGIC Investment Corp.

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