MGIC Investment (NYSE:MTG) Stock Price Expected to Rise, Barclays Analyst Says

Key Points

• Barclays raised its MGIC Investment price target from $29 to $30, but maintained an “equal weight” rating; the target implies 5.54% upside from the share price cited in the report.
• Analyst sentiment remains cautious: MarketBeat’s consensus rating is “Hold,” with a $31 average price target.
• MGIC beat quarterly earnings expectations, reporting $0.85 per share versus $0.81 forecast, while revenue narrowly exceeded estimates but fell 1.8% year over year.

MGIC Investment (NYSE:MTG - Get Free Report) had its price target upped by equities research analysts at Barclays from $29.00 to $30.00 in a research note issued on Friday, Benzinga reports. The brokerage currently has an "equal weight" rating on the insurance provider's stock. Barclays's price target points to a potential upside of 5.54% from the company's current price.

Several other analysts have also issued reports on the company. BTIG Research assumed coverage on MGIC Investment in a research note on Tuesday, September 22nd. They issued a "hold" rating on the stock. Keefe, Bruyette & Woods lifted their target price on MGIC Investment from $29.00 to $30.00 and gave the stock a "market perform" rating in a research note on Friday, July 31st. Zacks Research lowered MGIC Investment from a "strong-buy" rating to a "hold" rating in a report on Monday, October 19th. Weiss Ratings upgraded MGIC Investment from a "buy (b+)" rating to a "buy (a-)" rating in a research note on Wednesday, August 19th. Finally, Royal Bank Of Canada increased their price target on MGIC Investment from $28.00 to $32.00 and gave the company a "sector perform" rating in a research note on Friday, July 31st. One equities research analyst has rated the stock with a Strong Buy rating, one has assigned a Buy rating and six have assigned a Hold rating to the stock. Based on data from MarketBeat, the company presently has a consensus rating of "Hold" and a consensus price target of $31.00.

MGIC Investment Price Performance

Shares of NYSE MTG traded down $0.93 during mid-day trading on Friday, hitting $28.42. 513,837 shares of the stock were exchanged, compared to its average volume of 2,078,838. MGIC Investment has a twelve month low of $24.69 and a twelve month high of $31.89. The stock's fifty day simple moving average is $28.86 and its two-hundred day simple moving average is $27.80. The company has a debt-to-equity ratio of 0.13, a quick ratio of 1.19 and a current ratio of 1.19. The company has a market cap of $5.83 billion, a P/E ratio of 8.83, a PEG ratio of 1.03 and a beta of 0.64.

MGIC Investment (NYSE:MTG - Get Free Report) last released its earnings results on Wednesday, November 4th. The insurance provider reported $0.85 earnings per share for the quarter, topping analysts' consensus estimates of $0.81 by $0.04. MGIC Investment had a return on equity of 13.66% and a net margin of 58.12%. The company had revenue of $299.08 million during the quarter, compared to the consensus estimate of $298.66 million. During the same quarter in the previous year, the company posted $0.83 earnings per share. The firm's quarterly revenue was down 1.8% on a year-over-year basis. As a group, analysts forecast that MGIC Investment will post 3.22 EPS for the current fiscal year.

Insider Buying and Selling

In other news, COO Salvatore A. Miosi sold 30,000 shares of the stock in a transaction that occurred on Thursday, October 1st. The stock was sold at an average price of $26.06, for a total transaction of $781,800.00. Following the transaction, the chief operating officer owned 440,951 shares in the company, valued at approximately $11,491,183.06. This trade represents a 6.37% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Timothy J. Mattke sold 137,114 shares of MGIC Investment stock in a transaction that occurred on Thursday, October 1st. The stock was sold at an average price of $26.23, for a total value of $3,596,500.22. Following the sale, the chief executive officer directly owned 843,778 shares of the company's stock, valued at approximately $22,132,296.94. The trade was a 13.98% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders have sold 197,114 shares of company stock valued at $5,300,200. Corporate insiders own 1.34% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the company. Ethic Inc. boosted its stake in shares of MGIC Investment by 3.9% in the 3rd quarter. Ethic Inc. now owns 9,402 shares of the insurance provider's stock valued at $243,000 after purchasing an additional 351 shares in the last quarter. Baird Financial Group Inc. increased its position in MGIC Investment by 3.1% during the 2nd quarter. Baird Financial Group Inc. now owns 13,092 shares of the insurance provider's stock worth $369,000 after purchasing an additional 392 shares in the last quarter. Compound Planning Inc. increased its position in MGIC Investment by 4.3% during the 1st quarter. Compound Planning Inc. now owns 10,392 shares of the insurance provider's stock worth $273,000 after purchasing an additional 433 shares in the last quarter. Oregon Public Employees Retirement Fund lifted its stake in MGIC Investment by 1.1% in the 1st quarter. Oregon Public Employees Retirement Fund now owns 44,972 shares of the insurance provider's stock valued at $1,181,000 after purchasing an additional 481 shares during the last quarter. Finally, Versant Capital Management Inc lifted its stake in MGIC Investment by 9.4% in the 3rd quarter. Versant Capital Management Inc now owns 5,917 shares of the insurance provider's stock valued at $153,000 after purchasing an additional 508 shares during the last quarter. 95.58% of the stock is owned by institutional investors and hedge funds.

Trending Headlines about MGIC Investment

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

• Positive Sentiment: Q3 adjusted operating earnings were $0.85 per share, topping the roughly $0.81 consensus. Revenue of $299.1 million also narrowly exceeded expectations. MGIC Investment Q3 results
• Positive Sentiment: Management indicated operating expenses should come in slightly below its $190 million–$200 million range and extended quota-share reinsurance through 2029, supporting cost control and risk management. Expense outlook and reinsurance extension
• Neutral Sentiment: Stable credit performance and capital returns provide support, though lower sales and margin pressure temper the positive earnings surprise. Q3 results deep dive
• Negative Sentiment: Revenue fell 1.8% year over year, while rising losses and delinquencies are increasing credit-cost concerns. Those pressures may be weighing on sentiment despite the EPS beat. Q3 earnings and credit costs

MGIC Investment Company Profile

MGIC Investment Corporation NYSE: MTG is a holding company whose principal subsidiary is Mortgage Guaranty Insurance Corporation (MGIC), a provider of private mortgage insurance in the United States. MGIC's insurance helps protect mortgage lenders and investors against losses when borrowers default, enabling qualified homebuyers to obtain mortgages with smaller down payments.

MGIC primarily offers primary mortgage insurance for residential loans, working with mortgage lenders, banks and other housing-finance institutions.

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