MGIC Investment (NYSE:MTG) Stock Tumbles as Macquarie Said Settlement Leads Drop in Book Value

The Milwaukee-based MGIC Investment Corp (NYSE:MTG) stock tumbled after Macquarie Group Ltd told investors to sell the security on the view that claims expenses and legal outlays will drain assets.

Shares of MGIC Investment, the mortgage insurer that breached regulators’ capital limits, plunged 4.9% to settle at $2.90 in New York trading session at 2:32 PM. The insurer has plunged around 30% in the previous 12 months.

Macquarie’s Jasper Burch reported in note on Friday that the company’s settlement previous year with Freddie Mac regarding a coverage argument, costing $267.5 million, will probably lift a drop in book value to around $1 per share at the finish of 2013 from over $3 on Sept 30, 2012.
Shifting reader’s focus to broader market, let us consider market performance of other stocks that significantly affect same sector. Radian Group Inc. (NYSE:RDN) rose +3.29% to settle at $6.60, Old Republic International Corporation (NYSE:ORI) moved up +0.90% to end at $11.20 while MBIA Inc. (NYSE:MBI) jumped +1.69% to finish at $8.42 on Friday.

MGIC Investment Corp. (NYSE:MTG) on Jan 25, 2013 decreased -5.57% to the closing price of $2.88. The overall volume in the last trading session was 7.75 million shares. Its fifty two weeks range was $0.66 – $5.15. The total market capitalization remained at $581.85 million.

MTG is ahead of its 52-week low with 336.36% and lagging behind from its 52-week high price with -44.08%. MTG’s last month’s stock price volatility remained 6.13%. In its share capital MTG has 202.03 million outstanding shares, among them 199.07 million shares have been floated in market exchange. MTG’s stock’s institutional ownership remained 80.73% while insider ownership included 1.24%.

The stock price of MTG is moving down from its 20 days moving average with -0.03% and remote positively from 50 days moving average with 24.50%. MTG’s current year’s earnings per share experienced a downfall of -17.23% while its current quarter performance remained at 42.57%. Company’s beta coefficient included 3.37. Beta factors measure the amount of market risk associated with market trade.

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