Are Investors Unfairly Punishing MGIC Investment Corporation (NYSE:MTG)?

MGIC Investment Corporation (NYSE:MTG) previous close was $8.21 while the outstanding shares total 344.05M. The firm has a beta of 1.84, a 12-month trailing P/E ratio of 4.42,. MTG’s shares traded higher over the last trading session, gaining 6.46% on 05/29/20. The shares fell to a low of $7.98 before closing at $8.74. Intraday shares traded counted 2.19 million, which was 70.55% higher than its 30-day average trading volume of 7.43M. The stock’s Relative Strength Index (RSI) is 61.45, with weekly volatility at 8.78% and ATR at 0.65. The MTG stock’s 52-week price range has touched low of $4.34 and a $15.24 high.

Investors have identified the Insurance – Specialty company MGIC Investment Corporation as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around $2.88 billion, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.

MGIC Investment Corporation (MTG) Fundamentals that are to be considered.

MTG were able to record 183.74 million as free cash flow during the third quarter of the year, this saw their quarterly net cash flow reduce by 200.47 million. In cash movements, the company had a total of 184.32 million as operating cash flow.

Potential earnings growth for MGIC Investment Corporation (MTG)

In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the third quarter of the year, MGIC Investment Corporation recorded a total of 306.89 million in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with 4.97% coming in sequential stages and their sales for the third quarter reducing by -1.54%.

What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 105.73 million trying to sell their products during the last quarter, with the result yielding a gross income of 188.24 million. This allows shareholders to hold on to 344.05M with the revenue now reading 0.44 cents per share. This is a figure that is close to analyst’s prediction for their fourth quarter (0.38 cents a share).

Having a look at the company’s valuation, the company is expected to record 1.84 total earnings per share during the next fiscal year. It is very important though to remember that the importance of trend far outweighs that of outlook. This analysis has been great and getting further updates on MTG sounds very interesting.

Is the stock of MTG attractive?

In related news, Director, Kozlak Jodee A bought 5,000 shares of the company’s stock in a transaction that recorded on May 19. The purchase was performed at an average price of 7.09, for a total value of 35,465. As the purchase deal closes, the VP-Chief Accounting Officer, Sperber Julie K. now sold 5,535 shares of the company’s stock, valued at 79,012. Also, Vice Chairman, SINKS PATRICK sold 19,803 shares of the company’s stock in a deal that was recorded on Nov 27. The shares were cost at an average price of 14.37 per share, with a total market value of 284,569. Following this completion of disposal, the Vice Chairman, SINKS PATRICK now holds 25,342 shares of the company’s stock, valued at 359,856. In the last 6 months, insiders have changed their ownership in shares of company stock by 0.80%.

10 out of 12 analysts covering the stock have rated it a Buy, while 2 have maintained a Hold recommendation on MGIC Investment Corporation. 0 analysts has assigned a Sell rating on the MTG stock. The 12-month mean consensus price target for the company’s shares has been set at $12.20.