Keefe, Bruyette & Woods Issues Pessimistic Forecast for MBIA (NYSE:MBI) Stock Price

MBIA (NYSE:MBI) had its price target reduced by equities research analysts at Keefe, Bruyette & Woods from $7.50 to $7.00 in a note issued to investors on Thursday,Benzinga reports. The firm presently has an “outperform” rating on the insurance provider’s stock. Keefe, Bruyette & Woods’ target price points to a potential upside of 38.45% from the stock’s previous close.

A number of other research analysts have also commented on MBI. Wall Street Zen upgraded MBIA from a “sell” rating to a “hold” rating in a report on Saturday, May 16th. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of MBIA in a research report on Friday, July 17th. One investment analyst has rated the stock with a Buy rating and one has issued a Sell rating to the company’s stock. According to MarketBeat.com, the company currently has a consensus rating of “Hold” and a consensus target price of $7.00.

MBIA Price Performance

Shares of NYSE MBI traded up $0.08 during trading hours on Thursday, hitting $5.06. 4,802 shares of the company’s stock were exchanged, compared to its average volume of 370,682. MBIA has a 1-year low of $4.84 and a 1-year high of $8.26. The stock has a market capitalization of $257.50 million, a price-to-earnings ratio of -1.75 and a beta of 1.62. The company’s 50-day moving average price is $6.01 and its 200-day moving average price is $6.07.

MBIA (NYSE:MBI) last announced its earnings results on Thursday, August 6th. The insurance provider reported ($0.14) earnings per share for the quarter, missing the consensus estimate of ($0.12) by ($0.02). The company had revenue of $27.00 million during the quarter, compared to analysts’ expectations of $5.75 million. On average, research analysts expect that MBIA will post -0.33 earnings per share for the current year.

Hedge Funds Weigh In On MBIA

A number of hedge funds and other institutional investors have recently made changes to their positions in the business. BlackRock Inc. bought a new stake in MBIA in the second quarter valued at about $23,949,000. Wolf Hill Capital Management LP lifted its stake in MBIA by 4.5% during the fourth quarter. Wolf Hill Capital Management LP now owns 2,560,708 shares of the insurance provider’s stock worth $18,335,000 after purchasing an additional 110,544 shares during the period. Geode Capital Management LLC lifted its stake in MBIA by 1.4% during the second quarter. Geode Capital Management LLC now owns 1,043,095 shares of the insurance provider’s stock worth $4,528,000 after purchasing an additional 14,336 shares during the period. UBS Group AG boosted its holdings in MBIA by 72.9% during the third quarter. UBS Group AG now owns 1,026,406 shares of the insurance provider’s stock valued at $7,647,000 after purchasing an additional 432,906 shares in the last quarter. Finally, Marshall Wace LLP boosted its holdings in MBIA by 184.1% during the second quarter. Marshall Wace LLP now owns 416,964 shares of the insurance provider’s stock valued at $1,810,000 after purchasing an additional 270,192 shares in the last quarter. 60.95% of the stock is owned by institutional investors.

About MBIA

MBIA Inc is a financial guarantee insurance company specializing in credit enhancement and risk mitigation solutions for public finance and structured finance transactions. The company provides guaranty insurance for municipal bonds, asset-backed securities and other credit-sensitive obligations, protecting investors against the risk of payment default. Through its core insurance subsidiary, MBIA Insurance Corp., the firm offers financial guarantees, reinsurance support and customized credit solutions designed to improve the marketability and pricing of debt instruments.

Founded in 1973 as the Municipal Bond Insurance Association, MBIA built its reputation by insuring U.S.