The Reason To Stay Long On MGIC Investment Corporation (MTG)

The median price target for MGIC Investment Corporation, (MTG) over the next 12 months is $18, which means that it could rise by 24.91% from its current position. Despite that, some analysts believe that it won’t perform excellent, setting a lower price target of $13.5 for the stock which means it could rise by -6.32%. Most analysts believe that the company’s stock has the potential to rise by 28.38% or more. For MGIC Investment Corporation to record further gain analysts believe that the company has to hit $18.5 price target. The high price target for MTG for next 12 months currently stands at $18.5. This means that the highest 12 months price target is 28.38% above its last closing price. For most investors, the -0.76% change in the share price could have prompted them to sell the stock, but doing that would be a mistake as it would be taking into consideration only the short-term performance of the stock. The stock closed November 29, 2019 trading at $14.41 which saw downtrend of 37.76% since the beginning of 2019. The price of the stock has risen by 16.72% from average 12-month price target of $16.82 expected by the analysts.

A look at the MTG stock today shows that it has gained 23.16% of its value over the past one year, which has led to some investors becoming excited about the short-term performance of MGIC Investment Corporation (NYSE:MTG). If we turn to the stock analysts in general, they revealed that most of them are still bullish about the chances of the shares. The consensus rating from analysts for MGIC Investment Corporation (MTG) is 2.1 which is a ,neutral rating. Over the past week, the stock has been rated as a Buy 3 times while it has been rated as a Hold 0 times. The 52-week high price for MTG is $14.97 which is attained on May 01 while its 52-week low currently stands at $9.41 and was reached on December 24. At the moment, the stock is trading $1.21 above its YTD moving average set at $13.2.

In order to determine if the stock is worthy of your patience, you should know that MGIC Investment Corporation (NYSE:MTG) is now trading at 8.07X the earnings per share recorded over the past 12 months. This is a downtrend compared to the readings of the sector which is 16.54X while the industry average stands at 8.17X. The most popular way to value a stock is to look at its historic Price-to-Earnings (P/E) ratio with the help of its earnings report over the past 12 months. MGIC Investment Corporation was able to achieve an EPS of $1.79 during the last four quarters. The P/E ratio is widely known due to the fact that it is widely used, simple, effective, and, tautologically.

On Friday, November 29 of 2019, the 14-day Absolute ATR (Average True Range) for MTG moved by $0.22. Over the past seven days, the stock’s average daily volatility stood at 1.15%. A stock with a low volatility is usually a good one as it means that investors are very confident in the stock. MGIC Investment Corporation’s trading volume has recently moved to 775.89 thousand, which is compared with the average daily volume of 2.91 million shares.

The daily chart for MTG, points out that the company has recorded 5.18% gains over the past six months. However, it is still 53.13% higher than its most recent low trading price. The performance of the stock over the past five days shows that it is up 2.27% though it is 2.42% above its three-week moving average. It is worthy to know that price action is not always clear. There are times when a stock will undergo some negatives, trade erratically within some range or even act very unpredictable. When that happens, then making use of moving averages makes the pattern clearer for traders. Comparing to 50-day SMA, the price of the stock has surged by 6.32% while it is up 7.42% against the 200-day SMA. This is usually seen as the last support line for a stock, as a move downward could signal a bearish trend or market. The daily chart of MTG reveals that it has gained some grounds as it ended Friday with a 4.95% rise over the past 30 days.