MBIA Inc Receives a Buy from MKM Partners

By Austin Angelo

MKM Partners analyst Harry Fong reiterated a Buy rating on MBIA Inc (NYSE: MBI) today and set a price target of $12. The company’s shares opened today at $8.02.

Fong noted:

“We are traveling today and will update our model upon our return. However, MBIA’s current earnings report is not likely the key focus of investor attention today. Rather, we believe investors will be more interested in what the company says about its excess capital position and any request to the NYDFS for a special dividend or the ability to use excess funds for share repurchases within its National Public Finance (NPF) unit. The earnings call is scheduled for 8:00 AM ET this morning.”

According to TipRanks.com, Fong is a 5-star analyst with an average return of 12.6% and a 79.8% success rate. Fong covers the Financial sector, focusing on stocks such as Cincinnati Financial Corp., Marsh & Mclennan Companies, and Arch Capital Group Ltd.

Currently, the analyst consensus on MBIA Inc is Moderate Buy and the average price target is $12, representing a 49.6% upside.

In a report issued on November 2, BTIG also reiterated a Buy rating on the stock with a $14 price target.

The company has a one year high of $9.49 and a one year low of $5.26. Currently, MBIA Inc has an average volume of 991.6K.

Based on the recent corporate insider activity of 31 insiders, corporate insider sentiment is neutral on the stock. Most recently, in August 2016, Richard C. Vaughan, a Director at MBI sold 3,000 shares for a total of $24,630.

MBIA, Inc. is a holding company, which through its subsidiaries, provides financial guarantee insurance, as well as related reinsurance, advisory and portfolio services and asset management advisory services, for the public and structured finance markets. It operates through the following segments: U.S. Public Finance Insurance; Corporate; and International and Structured Finance Insurance. The U.S. Public Finance Insurance segment is principally conducted through National. National issues financial guarantees for municipal bonds, including tax-exempt and taxable indebtedness of U.S. political subdivisions, as well as utilities, airports, health care institutions, higher educational facilities, student loan issuers, housing authorities and other similar agencies and obligations issued by private entities that finance projects that serve a substantial public purpose. The Corporate segment consists of general corporate activities, including providing general support services to MBIA’s other operating businesses and asset and capital management. The International and Structured Finance Insurance segment is conducted thru the MBIA Corp. The company was founded in 1973 and is headquartered in Purchase, NY.