MBIA Inc. (MBI) Stock Rebounds in a Big Way Thanks to Speculation Over PREPA Debt Restructuring


MBIA Inc. (NYSE:MBI) shares are up big today, rebounding from what has been a very large fall since the beginning of November. Shares have fallen from $8.28 on November 6, all the way down to $5.41 per share yesterday.

Today, the stock is up on speculation of a potential Puerto Rico Electric Power Authority (PREPA) restructuring deal. Investors may remember a deal that was reached about three months ago, in which PREPA agreed to restructure some of their $8 billion in debt. However the monoline bond insurers, which included MBIA Inc. (NYSE:MBI) had to agree to the deal as well.

It is speculated that PREPA may get an agreement from these companies, including MBIA Inc. (NYSE:MBI).

The stock is up 19.59% or $1.06 following the news, hitting $6.47 per share. About 976,434 shares traded hands. MBI has declined 44.80% since May 15, 2015 and is downtrending. It has underperformed the S&P500 by 42.53%.

From a total of 2 analysts covering MBIA Inc (NYSE:MBI) stock, 1 rate it a “Buy”, 1 a “Sell”, and 0 a “Hold”. This means that 50% of the ratings are positive. MBIA Inc was the topic of 2 analyst reports since August 7, 2015 according to the firm StockzIntelligence Inc. M Partners upgraded shares on November 3 to a “Buy” rating.

The institutional sentiment decreased to 0.8 in Q2 2015. It’s down 0.42, from 1.22 in 2015Q2. The ratio fall, as 45 funds sold all their MBIA Inc. shares they owned while 68 reduced their positions. 29 funds bought stakes while 61 increased their total positions. Institutions now own 142.20 million shares which is 15.52% less than the previous share count of 168.32 million in 2015Q2.

Elm Ridge Management Llc holds 4.6% of its total portfolio in MBIA Inc., equating to 5.19 million shares. Herring Creek Capital Management Llc owns 2.48 million shares representing 4.14% of their total US portfolio. Moreover, Proxima Capital Management Llc has 4.12% of their total portfolio invested in the company, equating to 2.71 million shares. The New York-based Valueworks Llc has a total of 3.25% of their portfolio invested in the stock. Fine Capital Partners L.P., a New York-based fund reported 4.81 million shares owned.

Since May 22, 2015, the stock had 0 insider purchases, and 2 sales for a total of $234.81 million in net activity. Carney Sean sold 18.37M shares worth $117.40M. Warburg Pincus Private Equity X – L.P. sold 18.37 million shares worth $117.40 million.

MBIA Inc. is a holding company. The company has a market cap of $1.02 billion. Through its subsidiary, the Company provides financial guarantee insurance to the United States public finance markets. It has 10.78 P/E ratio. The Company’s indirect, wholly owned subsidiary is National Public Finance Guarantee Corporation (National).