JPMorgan Chase & Co. Increases Stake in Mortgage Insurer MGIC Investment Corp.

JPMorgan Chase & Co. Increases Stake in MGIC Investment Corp.

In a recent filing with the Securities & Exchange Commission, JPMorgan Chase & Co. has announced that it increased its stake in MGIC Investment Corp. by 32.8% during the fourth quarter of last year. The firm acquired an additional 3,463,253 shares of the insurance provider’s stock, bringing its total ownership to 14,022,698 shares – equivalent to about 4.72% of MGIC’s worth or $182,295,000 at the end of last year.

MGIC Investment Corp., founded in 1957 by Max Karl and headquartered in Milwaukee, WI, is a holding company that provides mortgage insurance and other mortgage credit risk management solutions and ancillary services.

Shares of NYSE MTG opened at $15.56 on Friday with a market capitalization of $4.46 billion and a PE ratio of 5.60. The business’s fifty-day moving average price is $14.38 while its two-hundred day moving average stands at $13.72.

At present, MGIC sits at an optimal debt-to-equity ratio of 0.14 with both current and quick ratios hovering around 0.69 each – indicative of strong liquidity positions for the firm.

The significance of this move by JPMorgan Chase & Co., one of the largest financial institutions in the world with total assets worth over $2 trillion as at Q3 last year according to Statista data sets, underscores confidence in MGIC’s growth trajectory and potential profitability going forward.

Investors will be watching closely to see if other financial giants follow JPMorgan Chase & Co.’s lead in increasing their stakes within the company – which could well trigger further upward momentum for MGIC shares on NYSE.

MGIC Investment Corp.: A Smart Investment in the Ever-Changing World of Finance and Insurance

The world of finance and insurance is a complex and ever-changing landscape. As such, it’s no surprise that institutional investors and hedge funds own 96.95% of the stock in MGIC Investment Corp., as recently reported in financial news. The company, which was founded by Max Karl in 1957, provides mortgage insurance, other mortgage credit risk management solutions, and ancillary services to its customers.

Several research firms have issued reports on MTG and the stock is currently rated as a “Moderate Buy,” with an average target price of $16.20 according to Bloomberg. It appears these ratings are not unearned, as MGIC Investment recently beat analysts’ consensus earnings estimates for the first quarter of this year – reporting an EPS of $0.54 versus the estimated $0.51.

It’s also worth noting that over the past few months, several large investors have increased their positions in shares of MGIC Investment or bought new stakes entirely: HighTower Advisors LLC recently bought a stake valued at about $230,000; Raymond James Financial Services Advisors Inc. increased its position by 13.4% to now own over 100 thousand shares; Natixis Advisors L.P raised its stake by just over 42% to own more than 25 thousand shares; MetLife Investment Management LLC now owns over 200 thousand shares; finally Commonwealth of Pennsylvania Public School Empls Retrmt SYS upped its stake by almost 9%.

As for the immediate future, survey data indicates that these favorable assessments may well continue into subsequent quarters: on average, analysts predict an EPS of 2.19 for FY2017 from MGIC Investments – indicating growth and progress despite slight declines in revenue each consecutive year since FY2013. Thus we can recognize that positive results can be forecasted although there are still uncertainties present within every sector of economy especially during such volatile times due to ongoing outbreak of COVID-19 and it’s variants. Overall, it is looking like MGIC Investment has potential to increase in value over time, making it a smart investment option for those interested in the insurance and finance markets.

Source: beststocks.com