- The stock price of MGIC Investment Corp. (NYSE: MTG) increased by over 4% during intraday trading today. This is why.
The stock price of MGIC Investment Corp. (NYSE: MTG) increased by over 4% during intraday trading today. Investors are responding positively to a bullish research report.
RBC Capital analyst Mark Dwelle upgraded MGIC Investment from a “Sector Perform” rating to an “Outperform” rating.
“We are upgrading shares of MGIC (MTG) to Outperform from Sector Perform. This note is being published in conjunction with our deep dive into MIs,” wrote Dwelle in a research note. “Our upgrade balances the sentiment headwind of owning “mortgage” stocks in a market fearful of recession and slowing housing market, with the sizable discount to book value where MGIC shares currently trade. At roughly 0.8x trailing book value per share, we think MGIC is attractively valued today. Over time, we would expect shares to rebound towards book value (which is growing due to operating results and accretive buybacks) and perhaps higher.”
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