Zacks Research Predicts Weaker Earnings for MGIC Investment

MGIC Investment Corporation (NYSE:MTG) – Research analysts at Zacks Research reduced their Q1 2028 earnings estimates for MGIC Investment in a research note issued to investors on Tuesday, August 18th. Zacks Research analyst Team now forecasts that the insurance provider will earn $0.83 per share for the quarter, down from their previous forecast of $0.84. The consensus estimate for MGIC Investment’s current full-year earnings is $3.24 per share. Zacks Research also issued estimates for MGIC Investment’s FY2028 earnings at $3.23 EPS.

Several other research firms have also recently weighed in on MTG. Barclays reduced their price objective on MGIC Investment from $29.00 to $28.00 and set an “equal weight” rating for the company in a research report on Friday, May 1st. Weiss Ratings raised MGIC Investment from a “buy (b)” rating to a “buy (b+)” rating in a research report on Tuesday, July 7th. Keefe, Bruyette & Woods boosted their target price on MGIC Investment from $29.00 to $30.00 and gave the company a “market perform” rating in a research note on Friday, July 31st. Roth Capital restated a “buy” rating and issued a $35.00 target price on shares of MGIC Investment in a research note on Thursday, July 30th. Finally, Royal Bank Of Canada upped their price target on MGIC Investment from $28.00 to $32.00 and gave the stock a “sector perform” rating in a research report on Friday, July 31st. Two research analysts have rated the stock with a Buy rating and four have given a Hold rating to the company’s stock. According to MarketBeat, the stock has a consensus rating of “Hold” and an average price target of $30.60.

MGIC Investment Price Performance

MTG stock opened at $30.94 on Thursday. The stock has a 50-day moving average price of $28.80 and a two-hundred day moving average price of $27.35. MGIC Investment has a 1 year low of $24.69 and a 1 year high of $31.89. The stock has a market cap of $6.35 billion, a PE ratio of 9.67, a price-to-earnings-growth ratio of 0.79 and a beta of 0.66. The company has a current ratio of 1.19, a quick ratio of 1.19 and a debt-to-equity ratio of 0.13.

MGIC Investment (NYSE:MTG) last issued its quarterly earnings data on Wednesday, July 29th. The insurance provider reported $0.87 EPS for the quarter, topping analysts’ consensus estimates of $0.76 by $0.11. The business had revenue of $295.39 million for the quarter, compared to analyst estimates of $297.54 million. MGIC Investment had a net margin of 59.20% and a return on equity of 13.90%. The firm’s quarterly revenue was down 2.9% on a year-over-year basis. During the same period last year, the business posted $0.82 earnings per share.

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 paid a dividend of $0.17 per share. The ex-dividend date is Wednesday, August 5th. This represents a $0.68 dividend on an annualized basis and a dividend yield of 2.2%. This is a positive change from MGIC Investment’s previous quarterly dividend of $0.15. MGIC Investment’s dividend payout ratio (DPR) is currently 21.25%.

MGIC Investment announced that its board has initiated a stock buyback program on Thursday, April 23rd that permits the company to buyback $750.00 million in outstanding shares. This buyback authorization permits the insurance provider to repurchase up to 12.4% of its shares through open market purchases. Shares buyback programs are usually a sign that the company’s management believes its stock is undervalued.

Insider Transactions at MGIC Investment

In other news, COO Salvatore A. Miosi sold 30,000 shares of the firm’s stock in a transaction dated Monday, June 8th. The stock was sold at an average price of $25.38, for a total value of $761,400.00. Following the completion of the transaction, the chief operating officer owned 560,951 shares in the company, valued at $14,236,936.38. This trade represents a 5.08% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Paula C. Maggio sold 20,937 shares of the firm’s stock in a transaction dated 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 transaction, the executive vice president owned 169,620 shares of the company’s stock, valued at $4,333,791. The trade was a 10.99% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders have sold 70,937 shares of company stock valued at $1,902,340. Company insiders own 1.34% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds have recently bought and sold shares of the stock. SBI Securities Co. Ltd. raised its stake in shares of MGIC Investment by 40.3% during the 4th quarter. SBI Securities Co. Ltd. now owns 1,461 shares of the insurance provider’s stock worth $43,000 after purchasing an additional 420 shares in the last quarter. Compound Planning Inc. grew its stake in shares of MGIC Investment by 4.3% in the first quarter. Compound Planning Inc. now owns 10,392 shares of the insurance provider’s stock valued at $273,000 after buying an additional 433 shares in the last quarter. Oregon Public Employees Retirement Fund increased its holdings in MGIC Investment by 1.1% during the first quarter. Oregon Public Employees Retirement Fund now owns 44,972 shares of the insurance provider’s stock worth $1,181,000 after buying an additional 481 shares during the last quarter. Lido Advisors LLC increased its holdings in MGIC Investment by 2.2% during the fourth quarter. Lido Advisors LLC now owns 23,799 shares of the insurance provider’s stock worth $689,000 after buying an additional 522 shares during the last quarter. Finally, Victory Financial Group LLC raised its position in MGIC Investment by 1.9% during the third quarter. Victory Financial Group LLC now owns 27,994 shares of the insurance provider’s stock worth $794,000 after acquiring an additional 535 shares in the last quarter. 95.58% of the stock is currently owned by institutional investors.

Key MGIC Investment News

Here are the key news stories impacting MGIC Investment this week:

• Positive Sentiment: Zacks raised its FY2026 EPS forecast to $3.21 from $3.09, bringing the estimate in line with the broader consensus. The firm also increased its Q2 2027 forecast to $0.82 from $0.79, Q2 2028 to $0.90 from $0.83, and FY2028 to $3.23 from $3.22.
• Neutral Sentiment: The revisions are mixed rather than a broad change in the earnings outlook. Zacks now projects FY2028 EPS of $3.23, compared with the current-year consensus estimate of $3.24, while the company’s valuation remains relatively low at about 9.7 times earnings. MTG’s shares are also trading near their 12-month high, which may limit the immediate reaction to modest estimate changes.
• Negative Sentiment: Zacks lowered several quarterly forecasts, including Q3 2026 EPS to $0.77 from $0.78, Q4 2026 to $0.81 from $0.82, Q3 2027 to $0.81 from $0.83, Q4 2027 to $0.83 from $0.85, and Q1 2028 to $0.83 from $0.84. These reductions suggest some near- and medium-term earnings pressure despite the higher full-year 2026 forecast.

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.