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Is this Large Market Cap Stock target price reasonable for MGIC Investment Corp. (NYSE:MTG)?

The company in question is, MGIC Investment Corp. (NYSE:MTG) currently with a stock price of 8.02 (0.75% today). The market cap for MGIC Investment Corp. is 2738.96, and is in the sector Financial, and Property & Casualty Insurance industry. The target price for MGIC Investment Corp. is 9.7. Currently MGIC Investment Corp. is trading with a P/E of 3.3, and a forward P/E of 8.29. Average volume for MGIC Investment Corp. is 4983.9 and so far today it is 2010167.

Performance in the last year for MGIC Investment Corp. has been -17.00%. For EPS growth, MGIC Investment Corp. has seen a growth of 292.00%, and is looking to grow in the next year to 15.38%. More long term stats show that EPS growth has been 26.30% over the last five years and could be 1.97% for the next five years. MGIC Investment Corp. has seen sales growth quarter over quarter at 8.40%, with EPS growth quarter over quarter at 1.10%. The 20-day simple moving average is 1.35%, with the 200-day simple moving average coming to 11.51%.

Since the IPO date for MGIC Investment Corp. on the 08/07/1991, MGIC Investment Corp. has seen performance year to date to be -9.85%. With MGIC Investment Corp. trading at 8.02, the dividend yield is *TBA, and the EPS is 2.41.

So could MGIC Investment Corp., be undervalued? Well as said before P/E is 3.3. The PEG is 1.68, P/S is 2.61 and the P/B is at 1.08. The P/cash is 9.1, with P/free cash flow at 13.74.

MGIC Investment Corp. ability to deal with debt shows that the current ratio is *TBA, and the quick ratio is *TBA. This is with long term debt/equity at 0.36, and total debt/equity at 0.

In terms of margins, MGIC Investment Corp. has a gross margin of *TBA, an operating margin of 54.00% and a profit margin of *TBA.Payout ratio for MGIC Investment Corp. is 0.00%. Return on assets come to 18.90% with return on investment coming to 36.00%.

Insider ownership for MGIC Investment Corp., is at 0.60% and institutional ownership comes to 95.20%. Outstanding shares are at 344.09. While shares float is 336.9. The float short is currently 4.42%, and short ratio is 2.99.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.

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Tony Dabbs

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