MGIC Investment (NYSE:MTG) Issues Quarterly Earnings Results, Beats Expectations By $0.11 EPS

MGIC Investment (NYSE:MTG) posted its quarterly 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. MGIC Investment had a net margin of 59.20% and a return on equity of 13.83%. The firm had revenue of $295.39 million for the quarter, compared to the consensus estimate of $297.54 million. During the same period last year, the firm posted $0.82 earnings per share. The company’s revenue for the quarter was down 2.9% on a year-over-year basis.

MGIC Investment Stock Performance

Shares of MTG traded down $0.45 during midday trading on Friday, reaching $30.00. 460,587 shares of the stock were exchanged, compared to its average volume of 2,053,987. 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 twelve month low of $24.69 and a twelve month high of $31.89. The business’s 50-day moving average price is $27.34 and its 200 day moving average price is $26.94. The company has a market capitalization of $6.34 billion, a price-to-earnings ratio of 9.38, a PEG ratio of 2.11 and a beta of 0.67.

MGIC Investment Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, August 20th. Stockholders of record on Wednesday, August 5th will be given a dividend of $0.17 per share. The ex-dividend date of this dividend is Wednesday, August 5th. This represents a $0.68 annualized dividend and a dividend yield of 2.3%. This is an increase from MGIC Investment’s previous quarterly dividend of $0.15. MGIC Investment’s payout ratio is currently 19.05%.

Insiders Place Their Bets

In other news, EVP Paula C. Maggio sold 20,937 shares of the firm’s stock in a transaction on Friday, May 29th. The shares were sold at an average price of $25.55, for a total value of $534,940.35. Following the completion of the sale, 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 position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, 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 stock in a transaction dated Monday, June 8th. The stock was sold at an average price of $25.38, for a total transaction of $761,400.00. Following the transaction, 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 ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 1.34% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On MGIC Investment

A number of institutional investors and hedge funds have recently made changes to their positions in the stock. Newbridge Financial Services Group Inc. purchased a new stake in MGIC Investment during the third quarter worth $28,000. Geneos Wealth Management Inc. lifted its stake in shares of MGIC Investment by 88.0% in the 1st quarter. Geneos Wealth Management Inc. now owns 1,745 shares of the insurance provider’s stock valued at $43,000 after purchasing an additional 817 shares in the last quarter. Kestra Advisory Services LLC purchased a new stake in shares of MGIC Investment during the 4th quarter worth about $79,000. Danske Bank A S purchased a new position in MGIC Investment in the third quarter valued at approximately $82,000. Finally, iSAM Funds UK Ltd purchased a new stake in MGIC Investment during the third quarter worth approximately $122,000. 95.58% of the stock is owned by institutional investors and hedge funds.

MGIC Investment announced that its board has authorized a stock repurchase program on Thursday, April 23rd that allows the company to buyback $750.00 million in shares. This buyback authorization allows the insurance provider to reacquire up to 12.4% of its stock through open market purchases. Stock buyback programs are usually an indication that the company’s leadership believes its shares are undervalued.

Wall Street Analysts Forecast Growth

A number of equities analysts recently commented on MTG shares. Barclays reduced their price objective on MGIC Investment from $29.00 to $28.00 and set an “equal weight” rating on the stock in a research report on Friday, May 1st. Weiss Ratings raised shares of MGIC Investment from a “buy (b)” rating to a “buy (b+)” rating in a research report on Tuesday, July 7th. Royal Bank Of Canada began coverage on shares of MGIC Investment in a research report on Friday, May 22nd. They set a “sector perform” rating and a $28.00 price objective for the company. Roth Capital reissued a “buy” rating and issued a $35.00 price target on shares of MGIC Investment in a research note on Thursday. Finally, Keefe, Bruyette & Woods upped their price objective on MGIC Investment from $29.00 to $30.00 and gave the company a “market perform” rating in a report on Friday. Two research analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company. According to MarketBeat.com, MGIC Investment presently has an average rating of “Hold” and a consensus target price of $29.80.

MGIC Investment Company Profile

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.