MGIC Investment (NYSE:MTG) Stock Price Down 7.3% – Should You Sell?

Shares of MGIC Investment Corporation (NYSE:MTG) fell 7.3% on Tuesday . The stock traded as low as $25.97 and last traded at $25.8620. 2,555,919 shares were traded during trading, an increase of 37% from the average session volume of 1,863,248 shares. The stock had previously closed at $27.90.

Analyst Ratings Changes

Several brokerages have commented on MTG. Barclays boosted their price target on shares of MGIC Investment from $28.00 to $30.00 and gave the stock an “equal weight” rating in a research report on Tuesday, January 6th. Weiss Ratings restated a “buy (a-)” rating on shares of MGIC Investment in a report on Wednesday, October 8th. Finally, Keefe, Bruyette & Woods upped their price target on MGIC Investment from $27.00 to $28.00 and gave the company a “market perform” rating in a report on Thursday, December 18th. One research analyst has rated the stock with a Strong Buy rating and four have assigned a Hold rating to the company. According to data from MarketBeat.com, MGIC Investment presently has a consensus rating of “Hold” and a consensus target price of $28.00.

MGIC Investment Stock Performance

The firm has a 50 day moving average of $28.68 and a 200-day moving average of $27.77. The company has a debt-to-equity ratio of 0.12, a quick ratio of 1.48 and a current ratio of 1.48. The stock has a market capitalization of $5.75 billion, a PE ratio of 8.26, a P/E/G ratio of 1.61 and a beta of 0.84.

MGIC Investment (NYSE:MTG) last announced its quarterly earnings data on Wednesday, October 29th. The insurance provider reported $0.83 EPS for the quarter, beating analysts’ consensus estimates of $0.72 by $0.11. The firm had revenue of $304.51 million for the quarter, compared to the consensus estimate of $308.16 million. MGIC Investment had a net margin of 61.96% and a return on equity of 14.62%. The firm’s revenue was down .7% on a year-over-year basis. During the same period in the previous year, the firm posted $0.77 earnings per share. Research analysts forecast that MGIC Investment Corporation will post 2.71 earnings per share for the current year.

MGIC Investment Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Thursday, November 20th. Investors of record on Thursday, November 6th were issued a dividend of $0.15 per share. This represents a $0.60 annualized dividend and a dividend yield of 2.3%. The ex-dividend date was Thursday, November 6th. MGIC Investment’s dividend payout ratio (DPR) is currently 19.29%.

Insiders Place Their Bets

In other MGIC Investment news, COO Salvatore A. Miosi sold 30,000 shares of the business’s stock in a transaction dated Monday, November 3rd. The stock was sold at an average price of $27.52, for a total value of $825,600.00. Following the transaction, the chief operating officer owned 159,401 shares in the company, valued at $4,386,715.52. The trade was a 15.84% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Also, EVP Paula C. Maggio sold 20,000 shares of the company’s stock in a transaction dated Friday, October 31st. The stock was sold at an average price of $27.44, for a total value of $548,800.00. Following the completion of the transaction, the executive vice president directly owned 117,395 shares in the company, valued at approximately $3,221,318.80. The trade was a 14.56% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. 1.41% of the stock is currently owned by company insiders.

Institutional Trading of MGIC Investment

Several large investors have recently added to or reduced their stakes in MTG. FCG Investment Co acquired a new stake in shares of MGIC Investment during the 2nd quarter worth approximately $846,000. Sequoia Financial Advisors LLC acquired a new stake in MGIC Investment during the second quarter worth $568,000. North Star Asset Management Inc. bought a new stake in MGIC Investment in the 2nd quarter valued at $375,000. Moody Aldrich Partners LLC acquired a new position in shares of MGIC Investment in the 3rd quarter valued at $4,648,000. Finally, WINTON GROUP Ltd acquired a new position in shares of MGIC Investment in the 2nd quarter valued at $6,797,000. 95.58% of the stock is owned by institutional investors.

About MGIC Investment

MGIC Investment Corporation (NYSE: MTG) is a leading provider of private mortgage insurance in the United States. Established in 1957 as the nation’s first private mortgage insurer, MGIC helps lenders manage credit risk and facilitates homeownership by protecting mortgage loans against default. Headquartered in Milwaukee, Wisconsin, the company operates through its principal subsidiary, Mortgage Guaranty Insurance Corporation, and maintains relationships with a broad network of originators and servicers nationwide.

The company’s primary business activity involves issuing mortgage insurance policies that enable borrowers to purchase homes with down payments below traditional lending thresholds.