March 8, 2013- Shares of mortgage insurers Radion Corporation (FDN) and MGIC Investment Corporation (MTG) surged earlier this week after top market research firm Barclays assigned it top rating of “overweight” to the common stock for each company.
A Barclays spokesperson said the high rating for the two rival companies was issued because each of these organizations have much better access than they’ve had in the past to capital needed to absorb any additions to loss reserves.
The rating by Barclays appears to have gotten the attention of investors … bullish investors. MGIC stock rose by a hard-to-overlook twenty five percent to $5.22 yesterday while Radion stock reached all the way up to a near three year high of $10.53 on the big board at the New York Stock Exchange (NYSE).
Radion also has been able to raise about seven hundred million dollars recently by selling off some stocks and bonds, another fact that has made it attractive to potential investors.
Its rival, MDIC said through a company spokesman that it, too, is considering a number of ways to raise capital.
Industry analysts like what they have seen. In one research firm, the Price Target for MGIC rose to eight dollars from only one dollar.
Another analyst working for a different company increased the Price Target for Radion Corporation to fourteen dollars from only four dollars.