Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.
MBIA (
MBI) pushed the Insurance industry lower today making it today's featured Insurance laggard. The industry as a whole closed the day down 0.2%. By the end of trading, MBIA fell 55 cents (-5%) to $10.47 on average volume. Throughout the day, 3.6 million shares of MBIA exchanged hands as compared to its average daily volume of 4.2 million shares. The stock ranged in price between $10.46-$11.21 after having opened the day at $10.99 as compared to the previous trading day's close of $11.02. Other companies within the Insurance industry that declined today were:
MGIC Investment Corporation (
MTG), down 5.5%,
First Acceptance Corporation (
FAC), down 5.5%,
Kingsway Financial Services (
KFS), down 4%, and
American Independence Corporation (
AMIC), down 3.6%.
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MBIA Inc., together with its subsidiaries, provides financial guarantee insurance and related reinsurance, advisory, and portfolio services for the public and structured finance markets; and asset management advisory services in the United States and internationally. MBIA has a market cap of $1.99 billion and is part of the financial sector. The company has a P/E ratio of 1.6, below the S&P 500 P/E ratio of 17.7. Shares are up 40.4% year to date as of the close of trading on Monday. Currently there are no analysts that rate MBIA a buy, no analysts rate it a sell, and none rate it a hold.
TheStreet Ratings rates MBIA as a
hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, notable return on equity and reasonable valuation levels. However, as a counter to these strengths, we find that the company has favored debt over equity in the management of its balance sheet.
On the positive front,
China Life Insurance (
LFC), up 3.8%,
Kingstone Companies (
KINS), up 3.1%,
CNinsure (
CISG), up 2.8%, and
Primerica (
PRI), up 2.6%, were all gainers within the insurance industry with
MetLife (
MET) being today's featured insurance industry leader.
For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the insurance industry could consider
KBW Insurance ETF (
KIE) while those bearish on the insurance industry could consider
Proshares Short Financials (
SEF).
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