MGIC Investment Corporation [MTG] Stock trading around $8.60 per share: What’s Next?

MGIC Investment Corporation [NYSE: MTG] surged by $0.24 during the normal trading session on Friday and reaching a high of $8.62 during the day while it closed the day at $8.60. The company report on August 6, 2020 that MGIC Investment Corporation Announces Cash Tender Offer for its Outstanding 5.750% Senior Notes Due 2023.

MGIC Investment Corporation (NYSE: MTG) (the “Company”) today announced that it has commenced a cash tender offer (the “Tender Offer”) to purchase any and all of its 5.750% Senior Notes due 2023 (CUSIP No. 552848AF0) (the “2023 Notes”) having an aggregate outstanding principal amount of $425.0 million. The Tender Offer is being made on the terms and subject to the conditions set forth in the Offer to Purchase dated August 6, 2020 (the “Offer to Purchase”).

The Tender Offer will expire at 5:00 p.m., New York City time, on August 12, 2020, unless extended or earlier terminated as described in the Offer to Purchase (such time and date, as they may be extended, the “Expiration Time”). Tenders of the 2023 Notes must be properly made before the Expiration Time and may be withdrawn at any time before the Withdrawal Deadline (as defined in the Offer to Purchase). Holders of the 2023 Notes will receive $1,082.50 per $1,000 principal amount of 2023 Notes validly tendered and accepted for purchase (the “Tender Consideration”), plus accrued and unpaid interest to, but not including, the Settlement Date (as defined below) (“Accrued Interest”). The Company expects to pay the Tender Consideration, together with any Accrued Interest, for Notes validly tendered at or prior to the Expiration Time and not validly withdrawn and accepted for purchase by the Company to the respective holders thereof on August 13, 2020, the first business day after the Expiration Time (the “Settlement Date”). The Company expects to pay the Tender Consideration and Accrued Interest for the 2023 Notes validly tendered pursuant to the guaranteed delivery procedures described in the Offer to Purchase and accepted for payment (to the extent that such 2023 Notes are not delivered at or prior to the Expiration Time) on August 17, 2020, the third business day following the Expiration Time. For the avoidance of doubt, the Company will not pay accrued interest for any periods following the Settlement Date in respect of any 2023 Notes accepted in the Tender Offer.

MGIC Investment Corporation stock has also gained 3.99% of its value over the past 7 days. However, MTG stock has inclined by 20.62% in the 3 months of the year. Over the past six months meanwhile, it has lost -39.65% and lost -39.31% year-on date.

The market cap for MTG stock reached $2.83 billion, with 338.59 million shares outstanding and 332.92 million shares in the current float. Compared to the average trading volume of 6.13M shares, MTG reached a trading volume of 3708052 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Here’s what leading stock market gurus have to say about MGIC Investment Corporation [MTG]:

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for MTG shares is $12.30 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on MTG stock is a recommendation set at 1.90. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.

Keefe Bruyette have made an estimate for MGIC Investment Corporation shares, keeping their opinion on the stock as Mkt Perform, with their previous recommendation back on June 09, 2020. The new note on the price target was released on April 01, 2020, representing the official price target for MGIC Investment Corporation stock. Previously, the target price had yet another raise from $14.50 to $16.50, while Compass Point kept a Buy rating on MTG stock.

The Average True Range (ATR) for MGIC Investment Corporation is set at 0.36, with the Price to Sales ratio for MTG stock in the period of the last 12 months amounting to 2.30. The Price to Book ratio for the last quarter was 0.66, with the Price to Cash per share for the same quarter was set at 1.11. Price to Free Cash Flow for MTG in the course of the last twelve months was 4.15.

MTG stock trade performance evaluation

MGIC Investment Corporation [MTG] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 3.99. With this latest performance, MTG shares gained by 19.11% in over the last four-week period, additionally sinking by -39.65% over the last 6 months – not to mention a drop of -32.55% in the past year of trading.

Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for MTG stock in for the last two-week period is set at 59.27, with the RSI for the last a single of trading hit 68.26, and the three-weeks RSI is set at 56.60 for MGIC Investment Corporation [MTG]. The present Moving Average for the last 50 days of trading for this stock 8.24, while it was recorded at 8.40 for the last single week of trading, and 10.56 for the last 200 days.

MGIC Investment Corporation [MTG]: An insightful look at the core fundamentals

Operating Margin for any stock indicates how profitable investing would be, and MGIC Investment Corporation [MTG] shares currently have an operating margin of +74.19. MGIC Investment Corporation’s Net Margin is presently recorded at +55.50.

Return on Total Capital for MTG is now 18.85, given the latest momentum, and Return on Invested Capital for the company is 14.10. Return on Equity for this stock inclined to 17.08, with Return on Assets sitting at 11.25. When it comes to the capital structure of this company, MGIC Investment Corporation [MTG] has a Total Debt to Total Equity ratio set at 19.32. Additionally, MTG Total Debt to Total Capital is recorded at 16.19, with Total Debt to Total Assets ending up at 13.24. Long-Term Debt to Equity for the company is recorded at 19.32, with the Long-Term Debt to Total Capital now at 16.19.

Reflecting on the efficiency of the workforce at the company, MGIC Investment Corporation [MTG] managed to generate an average of $930,612 per employee.

Earnings per share (EPS) analysis for MGIC Investment Corporation [MTG] stock

With the latest financial reports released by the company, MGIC Investment Corporation posted 0.48/share EPS, while the average EPS was predicted by analysts to be reported at 0.42/share. When compared, the two values demonstrate that the company surpassed the estimates by a Surprise Factor of 14.30%. The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for MTG. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for MGIC Investment Corporation go to 0.57%.

MGIC Investment Corporation [MTG]: Insider Ownership positions

There are presently around $2,697 million, or 93.80% of MTG stock, in the hands of institutional investors. The top three institutional holders of MTG stocks are: VANGUARD GROUP INC with ownership of 36,806,616, which is approximately 4.199% of the company’s market cap and around 0.80% of the total institutional ownership; FMR LLC, holding 22,640,139 shares of the stock with an approximate value of $194.71 million in MTG stocks shares; and BLACKROCK INC., currently with $153.42 million in MTG stock with ownership of nearly -0.709% of the company’s market capitalization.

Positions in MGIC Investment Corporation stocks held by institutional investors increased at the end of August and at the time of the August reporting period, where 142 institutional holders increased their position in MGIC Investment Corporation [NYSE:MTG] by around 49,306,722 shares. Additionally, 199 investors decreased positions by around 53,040,547 shares, while 41 investors held positions by with 211,273,557 shares. The mentioned changes placed institutional holdings at 313,620,826 shares, according to the latest SEC report filing. MTG stock had 41 new institutional investments in for a total of 6,187,775 shares, while 67 institutional investors sold positions of 7,356,226 shares during the same period.

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