MGIC Investment (NYSE:MTG) Announces Share Repurchase Plan

MGIC Investment (NYSE:MTG) declared that its board has authorized a stock repurchase program on Thursday, April 24th, RTT News reports. The company plans to repurchase $750.00 million in shares. This repurchase authorization authorizes the insurance provider to buy up to 12.5% of its stock through open market purchases. Stock repurchase programs are generally a sign that the company’s board of directors believes its stock is undervalued.

Analysts Set New Price Targets

Several equities research analysts have recently commented on the company. Keefe, Bruyette & Woods lowered their target price on MGIC Investment from $28.00 to $26.00 and set a “market perform” rating for the company in a research note on Tuesday, April 8th. Compass Point reaffirmed a “neutral” rating and set a $27.00 price objective (up from $24.00) on shares of MGIC Investment in a research note on Wednesday, February 5th. Barclays increased their target price on MGIC Investment from $25.00 to $26.00 and gave the company an “equal weight” rating in a research note on Wednesday, February 5th. Finally, UBS Group boosted their target price on MGIC Investment from $25.00 to $26.00 and gave the stock a “neutral” rating in a research report on Wednesday, February 19th. One investment analyst has rated the stock with a sell rating, five have issued a hold rating and two have assigned a buy rating to the company. According to data from MarketBeat.com, the company presently has an average rating of “Hold” and an average target price of $26.50.

MGIC Investment Price Performance

Shares of MTG opened at $24.21 on Friday. The company has a quick ratio of 1.25, a current ratio of 0.48 and a debt-to-equity ratio of 0.12. MGIC Investment has a twelve month low of $20.02 and a twelve month high of $26.56. The stock has a market capitalization of $5.87 billion, a P/E ratio of 8.35 and a beta of 0.93. The company has a 50 day moving average of $23.86 and a 200-day moving average of $24.46.

MGIC Investment (NYSE:MTG) last released its earnings results on Monday, February 3rd. The insurance provider reported $0.72 earnings per share for the quarter, beating analysts’ consensus estimates of $0.65 by $0.07. MGIC Investment had a net margin of 63.18% and a return on equity of 14.86%. As a group, equities research analysts forecast that MGIC Investment will post 2.71 EPS for the current fiscal year.

MGIC Investment Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Wednesday, May 21st. Investors of record on Thursday, May 8th will be issued a dividend of $0.13 per share. The ex-dividend date of this dividend is Thursday, May 8th. This represents a $0.52 annualized dividend and a yield of 2.15%. MGIC Investment’s payout ratio is presently 17.93%.

Insider Activity at MGIC Investment

In other news, CAO Julie K. Sperber sold 4,600 shares of the company’s stock in a transaction that occurred on Friday, February 21st. The stock was sold at an average price of $24.55, for a total transaction of $112,930.00. Following the sale, the chief accounting officer now owns 75,070 shares in the company, valued at $1,842,968.50. This represents a 5.77 % decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this link. Insiders own 1.05% of the company’s stock.

MGIC Investment Company Profile

MGIC Investment Corporation, through its subsidiaries, provides private mortgage insurance, other mortgage credit risk management solutions, and ancillary services to lenders and government sponsored entities in the United States, the District of Columbia, Puerto Rico, and Guam. The company offers primary mortgage insurance that provides mortgage default protection on individual loans, as well as covers unpaid loan principal, delinquent interest, and various expenses associated with the default and subsequent foreclosure.