MBIA Inc. (MBI) shares are trading at lower $6.94 and the avg recommendation for the stock is Moderate Buy. while the current analyst price target stands at $11.50.
To add more color to this target, the company’s high over the last year is $10.90 and the low is $4.93. Over the last 52 weeks, MBI is down -29.97% while the S&P 500 is up 11.20%. The catalyst for this interesting swing was the company’s recent earnings report.
A Notable Earnings Report
In the last quarter, MBI reported a profit of $-106.0 million. MBIA Inc. also saw revenues decrease to $114.0 million. In addition, MBI has free cash flow of -$89.0 million as of 06-2020. The company’s EBITDA came in at -$48.0 million which compares well with its peers.
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MBI Return on Equity (ROE) is -90.80%, and its Return on Assets is -8.70%. All told, it is clear that, MBI needs to be on your watchlist.
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Of course, we must look beyond the financials and question how well those numbers represent the sustainable earnings power of the business. Investors need to know how sustainable this current run. MBI has a short ratio of 8.02 and outstanding shares of 62.61M.
MBI has seen increased volume after this news and investors are putting their support behind the value proposition. Furthermore, 10-day volume stands at 0.74 million and more growth is possible in the weeks ahead. Traders will also note the company’s earnings per share came in at -8.62. Investors should also keep an eye on sector updates as MBI has historically followed its peers on positive news.
All told, MBIA Inc. MBI has strung together solid data and demonstrated underlying fundamentals. At its current valuation, MBI represents an interesting risk/reward case. Traders should stay tuned to see if this recent report will push the stock to test recent resistance levels.
MBIA Inc. MBI is now commanding a market cap of 400.30M and a float of 51.16M. MBI is increasing its credibility in this sector and that could lead to more upside down the line. Sign-up for continuing coverage on shares of MBI stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!
Disclosure: we hold no position in MBI, either long or short, and we have not been compensated for this article.