Analyzing the Price-to-Earnings Ratio of MGIC Investment Corp (MTG)

The price-to-earnings ratio for MGIC Investment Corp (NYSE: MTG) is above average at 8.79x. The 36-month beta value for MTG is also noteworthy at 1.22. There are mixed opinions on the stock, with 5 analysts rating it as a “buy,” 5 rating it as “overweight,” 2 rating it as “hold,” and 0 rating it as “sell.”

The public float for MTG is 265.89M, and at present, short sellers hold a 3.70% of that float. The average trading volume of MTG on April 03, 2024 was 2.08M shares.

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MTG) stock’s latest price update

MGIC Investment Corp (NYSE: MTG) has experienced a decline in its stock price by -0.18 compared to its previous closing price of 21.89. However, the company has seen a gain of 0.05% in its stock price over the last five trading days. Zacks Investment Research reported 2024-04-02 that MGIC Investment (MTG) gains on the back of solid insurance in force, a decline in loss and claims payments, lower delinquency, better housing market fundamentals and prudent capital deployment.

MTG’s Market Performance

MGIC Investment Corp (MTG) has seen a 0.05% rise in stock performance for the week, with a 10.24% gain in the past month and a 13.27% surge in the past quarter. The volatility ratio for the week is 1.52%, and the volatility levels for the past 30 days are at 2.09% for MTG.. The simple moving average for the past 20 days is 3.81% for MTG’s stock, with a 21.08% simple moving average for the past 200 days.

Analysts’ Opinion of MTG

Many brokerage firms have already submitted their reports for MTG stocks, with UBS repeating the rating for MTG by listing it as a “Neutral.” The predicted price for MTG in the upcoming period, according to UBS is $18.50 based on the research report published on December 06, 2023 of the previous year 2023.

Barclays, on the other hand, stated in their research note that they expect to see MTG reach a price target of $19. The rating they have provided for MTG stocks is “Equal Weight” according to the report published on November 15th, 2023.

RBC Capital Mkts gave a rating of “Sector Perform” to MTG, setting the target price at $15.70 in the report published on July 06th of the previous year.

MTG Trading at 8.44% from the 50-Day Moving Average

After a stumble in the market that brought MTG to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -2.59% of loss for the given period.

Volatility was left at 2.09%, however, over the last 30 days, the volatility rate increased by 1.52%, as shares surge +10.58% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading +11.08% upper at present.

During the last 5 trading sessions, MTG rose by +0.05%, which changed the moving average for the period of 200-days by +42.44% in comparison to the 20-day moving average, which settled at $21.15. In addition, MGIC Investment Corp saw 13.27% in overturn over a single year, with a tendency to cut further gains.

Stock Fundamentals for MTG

Current profitability levels for the company are sitting at:

  • 0.78 for the present operating margin
  • 0.85 for the gross margin

The net margin for MGIC Investment Corp stands at 0.62. The total capital return value is set at 0.15. Equity return is now at value 14.68, with 11.30 for asset returns.

Based on MGIC Investment Corp (MTG), the company’s capital structure generated 0.11 points at debt to capital in total, while cash flow to debt ratio is standing at 1.11. The debt to equity ratio resting at 0.13. The interest coverage ratio of the stock is 24.43.

Currently, EBITDA for the company is 902.23 million with net debt to EBITDA at 0.3. When we switch over and look at the enterprise to sales, we see a ratio of 5.34. The receivables turnover for the company is 11.36for trailing twelve months and the total asset turnover is 0.18. The liquidity ratio also appears to be rather interesting for investors as it stands at 2.58.

Conclusion

In summary, MGIC Investment Corp (MTG) has had a better performance as of late. Analysts have bullish opinions on the stock, with some viewing it as a “buy” and others as a “hold”. It is worth mentioning that the stock is currently trading in close proximity to its 50-day moving average and its 52-week high.

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