MGIC Investment Co. (NYSE:MTG) Declares $0.13 Quarterly Dividend

MGIC Investment Co. (NYSE:MTG) declared a quarterly dividend on Thursday, April 24th, RTT News reports. Investors of record on Thursday, May 8th will be paid a dividend of 0.13 per share by the insurance provider on Wednesday, May 21st. This represents a $0.52 annualized dividend and a yield of 2.00%. The ex-dividend date is Thursday, May 8th.

MGIC Investment has raised its dividend by an average of 20.5% per year over the last three years. MGIC Investment has a dividend payout ratio of 17.6% meaning its dividend is sufficiently covered by earnings. Equities research analysts expect MGIC Investment to earn $2.81 per share next year, which means the company should continue to be able to cover its $0.52 annual dividend with an expected future payout ratio of 18.5%.

MGIC Investment Stock Performance

Shares of MTG opened at $26.04 on Tuesday. The company has a 50-day moving average of $23.99 and a two-hundred day moving average of $24.42. The stock has a market cap of $6.18 billion, a P/E ratio of 8.98 and a beta of 0.91. MGIC Investment has a 12-month low of $20.11 and a 12-month high of $26.56. The company has a current ratio of 0.48, a quick ratio of 1.25 and a debt-to-equity ratio of 0.12.

MGIC Investment (NYSE:MTG) last announced its quarterly earnings results on Wednesday, April 30th. The insurance provider reported $0.75 earnings per share for the quarter, topping analysts’ consensus estimates of $0.66 by $0.09. MGIC Investment had a net margin of 63.18% and a return on equity of 14.86%. The firm had revenue of $306.23 million during the quarter, compared to analysts’ expectations of $306.66 million. During the same period in the prior year, the company earned $0.65 EPS. The firm’s revenue was up 4.0% on a year-over-year basis. As a group, research analysts predict that MGIC Investment will post 2.71 EPS for the current fiscal year.

Insider Activity at MGIC Investment

In related news, CAO Julie K. Sperber sold 4,600 shares of the company’s stock in a transaction on Friday, February 21st. The stock was sold at an average price of $24.55, for a total value of $112,930.00. Following the completion of the transaction, the chief accounting officer now directly owns 75,070 shares in the company, valued at approximately $1,842,968.50. This represents a 5.77 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. 1.05% of the stock is owned by corporate insiders.

MGIC Investment declared that its board has approved a share repurchase program on Thursday, April 24th that permits the company to buyback $750.00 million in outstanding shares. This buyback authorization permits the insurance provider to buy up to 12.5% of its shares through open market purchases. Shares buyback programs are generally an indication that the company’s leadership believes its stock is undervalued.

Analysts Set New Price Targets

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

About MGIC Investment

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.