Technicals Say MGIC Investment Corporation (MTG) Is Worth Holding

As of Friday close, MGIC Investment Corporation’s (NYSE:MTG) stock was up $0.21, moving up 1.64 percent to $13.05. The average number of shares traded per day over the past five days has been 2,939,320 shares. 1 time new highs have been achieved over the past 5 days, with a -$0.43 fall in that time frame. In the last twenty days, the average volume was 2,866,425, while in the previous 50 days, it was 3,378,148.

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Since last month, MTG stock retreated -1.21%. Shares of the company fell to $12.60 on 05/12/22, the lowest level in the past month. A 52-week high of $16.84 was reached on 01/13/22 after having rallying from a 52-week low of $12.60. Since the beginning of this year, MTG’s stock price has dropped by -9.50% or -$1.37, and marked a new high 9 times. However, the stock has declined by -22.53% since its 52-week high.

MGIC Investment Corporation (MTG) last reported insider trading activity 163 days ago on Dec 02. Arrigoni Daniel A., the Director of the company, purchased of 5,000 shares for $14.19 on Dec 02. It resulted in a $70,950 investment by the insider.

Valuation Metrics

Right now, MGIC Investment Corporation (MTG) has a P/E ratio of about 7.05. The stock’s beta is 1.50. Besides these, the trailing price-to-sales (P/S) ratio of 3.40, the price-to-book (PB) ratio of 0.87, and the price-to-cash flow ratio of 6.75 may also be considered.

The latest dividend of $0.08 per share was paid out, remained unchanged from last year’s $0.08. On Friday July 30 2021, a $0.02 dividend increase was announced.

Financial Health

According to company report, the long-term debt-to-equity ratio for the quarter ending September 29 was 0.24, and the total debt-to-equity ratio was 0.24. In the year ended September 29, operating margins totaled 73.60%.

A company’s management is another factor that investors consider when determining the profitability of an investment. In the past year, return on investment (ROI) was 11.80%. Return on equity (ROE) for the past 12 months was 13.10%.

In MGIC Investment Corporation’s quarter-end financial report for September 29, it reported total debt of $882.04 million. MTG’s revenue fell -2.6% to $293.86 million during the quarter, while net income inched up to $294.62 million. While analysts expected MGIC Investment Corporation to report $0.45 quarterly earnings, the actual figure was $0.46 per share, beating the consensus estimate by 2.20%. The value of shareholders’ equity is $309.6 million.

Technical Picture

This quick technical analysis looks at MGIC Investment Corporation’s (MTG) price momentum. With a historical volatility rate of 31.04%, the RSI 9-day stood at 44.57% on 13 May.

With respect to its five-day moving average, the current MGIC Investment Corporation price is down by -3.19% percent or -$0.43. At present, MTG shares trade -2.68% below its 20-day simple moving average and -2.10% percent below its 100-day simple moving average. However, the stock is currently trading approximately -12.83% below its SMA50 and -5.84% below its SMA200.

Stochastic coefficient K was 22.67% and Stochastic coefficient D was 21.40%, while ATR was 0.43. Given the Stochastic reading of 29.97% for the 14-day period, the RSI (14) reading has been calculated as 44.33%. As of today, the MACD Oscillator reading stands at -0.28, while the 14-day reading stands at -0.23.

Analyst Ratings

MGIC Investment Corporation downgraded its rating on MGIC Investment Corporation (NYSE: MTG) to a Neutral in a note to investors on November 17, 2021. The analysts firm previously had a Buy rating on the stock.MGIC Investment Corporation (MTG) has been rated Overweight by analysts. According to 0 brokerage firms, MTG is a sell, and 3 firms recommend it is a Hold. There are 0 analysts who say the stock is underweight. A total of 1 analyst rate MGIC Investment Corporation stock as buy, with 5 recommending it as overweight.

With a median target price of $18.00, the current consensus forecast for the stock is $15.00 – $23.00. Based on these forecasts, analysts predict MGIC Investment Corporation (MTG) will achieve an average price target of $17.88.


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