Stock analysts at Compass Point lifted target price for MGIC Investment Corporation (NYSE:MTG) shares but reaffirmed their Buy recommendation for the stock in their opinion released on October 22. The price target has been increased from $14.50 to $16.50. BofA/Merrill analysts have downgraded their rating of MTG shares from Neutral to Underperform in a separate flash note to investors on June 13. Analysts at Wells Fargo downgraded the company stock to a Market Perform call from its previous Outperform stance, in a flash note that dated back to April 19.
Let’s take a glimpse at some insider activity at MGIC Investment Corporation (NYSE:MTG) and observe the pattern. The earliest insider trade happened on 11/27/2019. SINKS PATRICK parted with a total of 19.8 thousand shares of the firm at average share price of $14.37. The total amount for the sale was set at $284.57 thousand. On completing this exchange, the Vice Chairman account balance was 1.46 million shares. The stock grew 3.27 percent from that insider sale. On 11/19/2019, SINKS PATRICK, Vice Chairman, did a sale of 25.34 thousand shares at a price of $14.2 per share. This got rid of 359.86 thousand shares from the insider’s fortune and the stock experienced a 4.51 percent rally in price since the news became public. This exchange saw 1.48 million shares get out from the Vice Chairman account. On 11/15/2019, Vice Chairman SINKS PATRICK recorded a sale transaction valued at $1.05 million. The sale at $14.2 a share has eliminated 74.09 thousand shares from the insider’s portfolio position. Meanwhile, shares price witnessed 4.51 percent increase since the transaction reporting date. The company insider is left with 1.5 million shares remaining in the account. SINKS PATRICK, who works as Vice Chairman at the company, performed a sale of 111.26 thousand shares in a transaction worth $1.57 million. The disposal recorded on 11/13/2019 was priced at $14.13 per share. The stock price soared 5.02 percent since the transaction. SINKS PATRICK currently holds a stake of 1.57 million in MTG stock which is worth $22.73 million after the insider selling.
MGIC Investment Corporation (MTG) is most likely going to rise 18.85 percent in the coming 12 months, as per price target approximations compiled by finviz. Nevertheless, they have set the price target at a $20 as 12-month high price target. This represents a whopping 38.6 percent increase from the current trading price of shares. The 52-week median price target given by the analysts is $18, which means a return possibility of 24.74 percent in comparison with the closing price of the stock of $14.43 in recent trading session. The lowest price set for the stock is $13.5 which is just above -6.44 percent from MTG share’s price at the end of session.
The stock is lingering around the initial support level of $13.89. After this, the following support is at the zone of $13.52. Up until the time the MTG stock hit levels beyond the current one, bulls should have no alarm. In terms of its momentum, the stock’s RSI hit 65 on the daily chart, and this may be a cause for concern. In case the price goes below $13.52 level on closing basis, there may be more profit booking with the stock growing weaker. Still, getting to the $14.94 level may cause a pull-back move approaching $15.61 mark.
In the recent trading session, MGIC Investment Corporation (NYSE:MTG) shares gained 1.16% or 0.17 points to reach at $14.43 with a thin trading volume of 1.566 million shares. It opened the trading session at $14.68, the shares rose to $15.24 and dropped to $14.195, the range by which the price of stock traded the whole session. The company now has a market cap of $5.01 billion and currently has 351.24 million outstanding shares. MGIC Investment Corporation (MTG) stock has accumulated 1.49 percent of market value in 21 trading days.
MTG stock’s trailing 3-year beta is 1.46, meaning there will be a greater rate of return, although posing a higher risk. The part of a firm’s profit given to each outstanding share of regular stock was $1.79 share in the trailing 52 weeks. The stock’s value surged 0.64 percent year to date (YTD) compared to a rise of 13.63 percent in 52 week’s period. The firm’s shares are still trading -5.35 percent below its 1-year high of $15.24 and 21.73 percent up from 52-week low of $11.85. The average consensus ranking on the company is 2.1, on a ranging where 5 is equal to a consensus sell rating. In other words, the mean analyst recommendations are ranking this stock as a sell.
MGIC Investment Corporation (MTG) shares are trading at a P/E ratio of 7.72 times earnings posted in the trailing 12 months. The industry MTG deals with has an average P/E of 7.98. Its P/B ratio is standing at 1.2X compared to the 2 industry average. It is additionally sporting a 3.69 on the Price-to-Sales ratio, compared to the industry’s P/S average of 0.11.
Past records have indicated that shares in MGIC Investment Corporation rose on 27 different earnings reaction days and we have yet to see whether this trend will play out and remain in place when the company reports upcoming earnings. Investors will get the next hint of MTG’s Q1 earnings on April 15. Analysts are predicting revenue to climb 5.5 percent to $308M in the financial first quarter, while EPS will soar by about 7.14 percent to $0.45 per share. In the last quarter, it’s earnings of $0.49 per share came better than the $0.4334, adjusted, expected by Thomson Reuters consensus estimate. Revenue for the quarter was $311.63M, topping the $307.1M analysts had expected. Earnings are seen to rise by 39 percent this year, 1.51 percent in the coming year and the trend continues by 3.15 percent every year in the next 5 years.