Analysts Issue Forecasts for MGIC Investment FY2025 Earnings

Key Points

• Zacks Research raised its FY2025 earnings per share estimate for MGIC Investment from $2.89 to $3.01, indicating positive outlook for the insurance provider.
• The company reported Q2 earnings of $0.82 per share, beating consensus estimates of $0.70, despite a slight year-over-year revenue decline.
• MGIC Investment announced a quarterly dividend increase to $0.15 per share and a stock buyback program allowing for the reacquisition of up to $750 million in shares.

MGIC Investment Corporation (NYSE:MTG - Free Report) - Investment analysts at Zacks Research upped their FY2025 earnings per share (EPS) estimates for shares of MGIC Investment in a note issued to investors on Tuesday, August 19th. Zacks Research analyst Team now expects that the insurance provider will earn $3.01 per share for the year, up from their prior estimate of $2.89. The consensus estimate for MGIC Investment's current full-year earnings is $2.71 per share. Zacks Research also issued estimates for MGIC Investment's Q3 2026 earnings at $0.76 EPS, Q1 2027 earnings at $0.98 EPS and Q2 2027 earnings at $1.06 EPS.

MGIC Investment (NYSE:MTG - Get Free Report) last issued its quarterly earnings data on Wednesday, July 30th. The insurance provider reported $0.82 EPS for the quarter, beating analysts' consensus estimates of $0.70 by $0.12. The business had revenue of $304.25 million for the quarter, compared to analyst estimates of $306.25 million. MGIC Investment had a return on equity of 14.73% and a net margin of 62.58%.The firm's revenue for the quarter was down .3% on a year-over-year basis. During the same quarter in the prior year, the firm posted $0.77 EPS.

A number of other research firms have also issued reports on MTG. Barclays raised their target price on MGIC Investment from $26.00 to $27.00 and gave the company an "equal weight" rating in a report on Tuesday, July 8th. Compass Point reaffirmed a "neutral" rating and issued a $28.00 target price (up previously from $27.00) on shares of MGIC Investment in a report on Friday, May 23rd. Finally, Keefe, Bruyette & Woods raised their target price on MGIC Investment from $26.00 to $27.00 and gave the company a "market perform" rating in a report on Monday, July 7th. Five analysts have rated the stock with a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, the company presently has an average rating of "Reduce" and a consensus target price of $26.67.

MGIC Investment Stock Performance

Shares of NYSE MTG opened at $27.4950 on Thursday. The company has a debt-to-equity ratio of 0.13, a quick ratio of 1.46 and a current ratio of 1.46. The firm has a market cap of $6.34 billion, a price-to-earnings ratio of 9.01, a P/E/G ratio of 2.01 and a beta of 0.90. The business's 50-day simple moving average is $26.75 and its 200-day simple moving average is $25.47. MGIC Investment has a 52 week low of $21.94 and a 52 week high of $28.67.

MGIC Investment declared that its board has approved a stock buyback program on Thursday, April 24th that authorizes the company to buyback $750.00 million in shares. This buyback authorization authorizes the insurance provider to reacquire up to 12.5% of its stock through open market purchases. Stock buyback programs are generally a sign that the company's board of directors believes its shares are undervalued.

MGIC Investment Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, August 21st. Stockholders of record on Thursday, August 7th will be issued a dividend of $0.15 per share. This represents a $0.60 annualized dividend and a dividend yield of 2.2%. The ex-dividend date of this dividend is Thursday, August 7th. This is a boost from MGIC Investment's previous quarterly dividend of $0.13. MGIC Investment's payout ratio is 19.67%.

Insider Transactions at MGIC Investment

In other news, EVP Paula C. Maggio sold 20,000 shares of MGIC Investment stock in a transaction that occurred on Friday, May 30th. The stock was sold at an average price of $26.49, for a total transaction of $529,800.00. Following the sale, the executive vice president owned 157,395 shares of the company's stock, valued at approximately $4,169,393.55. This trade represents a 11.27% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CEO Timothy J. Mattke sold 139,203 shares of the firm's stock in a transaction that occurred on Thursday, August 7th. The stock was sold at an average price of $26.54, for a total value of $3,694,447.62. Following the transaction, the chief executive officer owned 1,100,994 shares of the company's stock, valued at $29,220,380.76. This trade represents a 11.22% decrease in their position. The disclosure for this sale can be found here. In the last quarter, insiders have sold 189,203 shares of company stock valued at $5,010,848. 1.05% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On MGIC Investment

Hedge funds and other institutional investors have recently modified their holdings of the stock. WPG Advisers LLC bought a new position in shares of MGIC Investment during the 1st quarter worth approximately $26,000. True Wealth Design LLC lifted its position in shares of MGIC Investment by 262.5% during the 2nd quarter. True Wealth Design LLC now owns 1,004 shares of the insurance provider's stock worth $28,000 after buying an additional 727 shares during the period. Hantz Financial Services Inc. lifted its position in shares of MGIC Investment by 3,067.6% during the 2nd quarter. Hantz Financial Services Inc. now owns 1,077 shares of the insurance provider's stock worth $30,000 after buying an additional 1,043 shares during the period. Employees Retirement System of Texas bought a new position in shares of MGIC Investment during the 2nd quarter worth approximately $32,000. Finally, Cullen Frost Bankers Inc. bought a new position in shares of MGIC Investment during the 1st quarter worth approximately $33,000. Institutional investors own 95.58% of the company's stock.

MGIC Investment Company Profile

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.

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