In recent trading, shares of MGIC Investment Corp. (Symbol: MTG) have crossed above the average analyst 12-month target price of $25.64, changing hands for $26.33/share. When a stock reaches the target set by analysts, they typically have two options: either downgrade the stock’s valuation or adjust their target price upwards. Analysts’ reactions may also hinge on recent developments within the company, which could justify a higher price target.
Within the Zacks coverage universe, there are seven distinct analyst targets for MGIC Investment Corp. The average is simply a mathematical mean, with one analyst suggesting a price as low as $23.50 and another predicting a high of $30.00. The standard deviation of these predictions stands at $2.286.
The concept of the average MTG price target embodies a “wisdom of crowds” approach, aggregating insights from multiple analysts rather than relying on a single opinion. Now that MTG has moved above the average target price of $25.64/share, this provides investors with a critical juncture to assess the company. They must consider whether $25.64 is merely a stepping stone towards an even higher target or if the current valuation has become stretched, prompting a reevaluation of their positions. Below is a breakdown of the most current analyst expectations for MGIC Investment Corp. :
| Recent MTG Analyst Ratings Breakdown | ||||
|---|---|---|---|---|
| » | Current | 1 Month Ago | 2 Month Ago | 3 Month Ago |
| Strong buy ratings: | 3 | 3 | 4 | 4 |
| Buy ratings: | 1 | 1 | 1 | 1 |
| Hold ratings: | 4 | 4 | 4 | 4 |
| Sell ratings: | 0 | 0 | 0 | 0 |
| Strong sell ratings: | 0 | 0 | 0 | 0 |
| Average rating: | 2.13 | 2.13 | 2.0 | 2.0 |
The average rating shown in the last row of the table ranges from 1 to 5, with 1 being Strong Buy and 5 being Strong Sell. This analysis utilized data from Zacks Investment Research via Quandl.com. For the latest Zacks research report on MTG — click here.
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The views and opinions expressed herein are those of the author and do not necessarily reflect the views of Nasdaq, Inc.
