MGIC Investment (NYSE:MTG) Announces Quarterly Earnings Results

MGIC Investment (NYSE:MTG) posted its earnings results on Wednesday. The insurance provider reported $0.87 earnings per share for the quarter, topping the consensus estimate of $0.76 by $0.11, FiscalAI reports. The company had revenue of $295.39 million for the quarter, compared to analyst estimates of $297.54 million. MGIC Investment had a net margin of 59.63% and a return on equity of 14.01%.

MGIC Investment Stock Up 0.0%

NYSE:MTG traded up $0.01 on Wednesday, hitting $30.59. 2,148,658 shares of the company’s stock were exchanged, compared to its average volume of 2,064,421. The firm has a 50-day moving average price of $27.17 and a 200-day moving average price of $26.92. The company has a debt-to-equity ratio of 0.13, a current ratio of 1.14 and a quick ratio of 1.14. MGIC Investment has a 52 week low of $24.69 and a 52 week high of $31.03. The company has a market cap of $6.47 billion, a P/E ratio of 9.71, a price-to-earnings-growth ratio of 2.07 and a beta of 0.67.

MGIC Investment Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, August 20th. Shareholders of record on Wednesday, August 5th will be paid a $0.17 dividend. This represents a $0.68 annualized dividend and a yield of 2.2%. The ex-dividend date is Wednesday, August 5th. This is a positive change from MGIC Investment’s previous quarterly dividend of $0.15. MGIC Investment’s dividend payout ratio (DPR) is presently 21.59%.

Wall Street Analysts Forecast Growth

Several equities analysts have recently issued reports on the stock. Keefe, Bruyette & Woods boosted their price target on shares of MGIC Investment from $28.00 to $29.00 and gave the company a “market perform” rating in a report on Friday, April 10th. Royal Bank Of Canada assumed coverage on MGIC Investment in a report on Friday, May 22nd. They set a “sector perform” rating and a $28.00 target price on the stock. Weiss Ratings raised MGIC Investment from a “buy (b)” rating to a “buy (b+)” rating in a research note on Tuesday, July 7th. Finally, Barclays lowered their price target on MGIC Investment from $29.00 to $28.00 and set an “equal weight” rating for the company in a report on Friday, May 1st. One research analyst has rated the stock with a Buy rating and four have given a Hold rating to the company. According to MarketBeat.com, the stock has a consensus rating of “Hold” and an average target price of $28.25.

Insider Activity at MGIC Investment

In related news, EVP Paula C. Maggio sold 20,937 shares of MGIC Investment stock in a transaction dated Friday, May 29th. The stock was sold at an average price of $25.55, for a total transaction of $534,940.35. Following the completion of the transaction, the executive vice president owned 169,620 shares in the company, valued at approximately $4,333,791. This trade represents a 10.99% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, COO Salvatore A. Miosi sold 30,000 shares of the firm’s stock in a transaction on Monday, June 8th. The shares were sold at an average price of $25.38, for a total value of $761,400.00. Following the sale, the chief operating officer directly owned 560,951 shares of the company’s stock, valued at $14,236,936.38. This represents a 5.08% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 1.34% of the stock is owned by insiders.

Hedge Funds Weigh In On MGIC Investment

Institutional investors and hedge funds have recently modified their holdings of the business. Newbridge Financial Services Group Inc. acquired a new position in shares of MGIC Investment during the 3rd quarter worth approximately $28,000. Geneos Wealth Management Inc. raised its position in shares of MGIC Investment by 88.0% in the first quarter. Geneos Wealth Management Inc. now owns 1,745 shares of the insurance provider’s stock valued at $43,000 after buying an additional 817 shares in the last quarter. Kestra Advisory Services LLC bought a new stake in shares of MGIC Investment in the fourth quarter valued at approximately $79,000. Danske Bank A S bought a new stake in shares of MGIC Investment in the third quarter valued at approximately $82,000. Finally, iSAM Funds UK Ltd acquired a new stake in MGIC Investment during the third quarter worth approximately $122,000. 95.58% of the stock is currently owned by institutional investors and hedge funds.

MGIC Investment declared that its board has authorized a share repurchase plan on Thursday, April 23rd that allows the company to repurchase $750.00 million in shares. This repurchase authorization allows the insurance provider to reacquire up to 12.4% of its shares through open market purchases. Shares repurchase plans are usually an indication that the company’s management believes its shares are undervalued.

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.