Mgic Investment Intrinsic Value Calculator – ProShare Advisors LLC reduces stake in MGIC Investment Co. by 5.5% in second quarter
October 9, 2024
🌥️Trending News
MGIC ($NYSE:MTG) Investment Co. is a leading mortgage insurance company in the United States, providing private mortgage insurance to lenders and investors in the residential mortgage market. The company’s stock has been performing well in recent years, with a steady increase in share price and strong financial performance.
However, recent news of ProShare Advisors LLC reducing its stake in the company has caught the attention of investors. According to the 13F filing, ProShare Advisors LLC, a registered investment advisor and subsidiary of ProShare Capital Management LLC, has decreased its ownership of MGIC Investment Co. shares by 5.5% in the second quarter. The 13F filing, required by the Securities and Exchange Commission (SEC), provides insight into the investment activity of major institutional investors. This filing shows that ProShare Advisors LLC, which manages over $20 billion in assets, has been trimming its position in MGIC Investment Co. during the second quarter. This reduction in stake could be a result of various factors, including changes in the company’s financial outlook or overall market conditions. It could also be a strategic move by ProShare Advisors LLC to reallocate its portfolio and diversify its holdings. The decrease in ProShare Advisors LLC’s stake does not necessarily reflect poorly on MGIC Investment Co. In fact, the company’s financials and market position remain strong, with solid growth potential in the future. Moreover, the current housing market trends and low interest rates bode well for the mortgage insurance industry, which could benefit MGIC Investment Co. in the long run. In conclusion, while the news of ProShare Advisors LLC reducing its stake in MGIC Investment Co. may have raised some concerns, it is important to analyze the situation in the broader context of the company’s performance and the overall market conditions. The 13F filing provides valuable insights into the investment activity of major institutional investors, but it should not be the sole factor influencing investment decisions.
Analysis – Mgic Investment Intrinsic Value Calculator
After conducting a thorough analysis of MGIC INVESTMENT‘s fundamentals, I have determined that the current intrinsic value of the company’s share is around $19.5. This was calculated using our proprietary Valuation Line, which takes into account various financial metrics such as earnings, cash flow, and growth projections. However, at the current market price of $25.37, it appears that MGIC INVESTMENT’s stock is overvalued by approximately 30.3%. This suggests that the market may be placing a higher value on the company than its actual worth. There are a few potential reasons for this overvaluation. One could be that investors are overly optimistic about the company’s future performance and growth potential. Another possibility is that market sentiment and external factors are driving up the stock price, rather than its intrinsic value. It’s important for investors to be aware of this overvaluation and to carefully consider their investment decisions. While it’s possible that the stock could continue to rise in the short term, there is also a risk of a correction in the future if the market reassesses MGIC INVESTMENT’s value. Overall, it’s important to always conduct a thorough analysis of a company’s fundamentals before making any investment decisions. This will help ensure that the stock is valued fairly and that investors are making informed choices. More…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Mgic Investment. More…
| Total Revenues | Net Income | Net Margin |
| 1.16k | 712.95 | 61.7% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Mgic Investment. More…
| Operations | Investing | Financing |
| 692.93 | 410.49 | -1.03k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Mgic Investment. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 6.54k | 1.47k | 17.93 |
Key Ratios Snapshot
Some of the financial key ratios for Mgic Investment are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| -1.2% | – | 81.3% |
| FCF Margin | ROE | ROA |
| 59.8% | 12.1% | 9.0% |
Peers
MGIC Investment Corp, Radian Group Inc, NMI Holdings Inc, and Essent Group Ltd are all mortgage insurance companies. They compete for business by offering different rates and terms to potential customers.
– Radian Group Inc ($NYSE:RDN)
Radian Group Inc. is a mortgage and real estate services company that offers mortgage insurance, mortgage lending, and real estate services. The company has a market cap of 3.1B and a ROE of 15.26%. Radian Group Inc. offers a variety of services including mortgage insurance, mortgage lending, and real estate services. The company is headquartered in Philadelphia, PA.
– NMI Holdings Inc ($NASDAQ:NMIH)
NMI Holdings Inc. is a holding company, which engages in the provision of private mortgage insurance. It operates through the following segments: Insurance Operations, Mortgage Services, and Corporate. The Insurance Operations segment offers primary mortgage insurance on residential mortgage loans. The Mortgage Services segment provides outsourced loan review services to mortgage originators and servicers. The Corporate segment represents the general and administrative expenses. The company was founded by Bradley Shuster, Ross Shapiro, and Erik J. Prusch on July 27, 2011 and is headquartered in Emeryville, CA.
– Essent Group Ltd ($NYSE:ESNT)
Essent Group Ltd is a provider of private mortgage insurance in the United States. The company has a market cap of 3.9 billion as of 2022 and a return on equity of 15.87%. The company offers mortgage insurance to lenders to protect them against losses if borrowers default on their loans. The company also provides reinsurance to other mortgage insurers.
Summary
ProShare Advisors LLC decreased their stake in MGIC Investment Co. during the second quarter by 5.5%. This suggests that they are less confident in the company’s potential for growth. It is important to note that this decrease could also be due to external factors, such as market conditions or changes in the overall economy.
Investors should carefully consider both internal and external factors when analyzing a company’s performance and future prospects. It is also recommended to conduct thorough research and analysis before making any investment decisions in MGIC Investment Co. or any other company.
Related Posts
Recent Posts
Investing Everyone Can Do.
Investing shouldn’t be exclusive to a select few. We believe everyone should have the opportunity to grow their wealth. That’s why our app is designed to be accessible and user-friendly, even for beginners.
