FY2025 EPS Estimate for MGIC Investment Increased by Analyst

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) - Research analysts at Zacks Research increased their FY2025 earnings estimates for MGIC Investment in a research note issued on Tuesday, August 19th. Zacks Research analyst Team now forecasts that the insurance provider will earn $3.01 per share for the year, up from their previous forecast 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.

Several other research firms have also commented on MTG. Keefe, Bruyette & Woods increased their price target on shares of MGIC Investment from $26.00 to $27.00 and gave the company a "market perform" rating in a research report on Monday, July 7th. Barclays upped their price objective on shares of MGIC Investment from $26.00 to $27.00 and gave the company an "equal weight" rating in a research note on Tuesday, July 8th. Finally, Compass Point reissued a "neutral" rating and set a $28.00 price objective (up previously from $27.00) on shares of MGIC Investment in a research note on Friday, May 23rd. Five analysts have rated the stock with a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the company currently has a consensus rating of "Reduce" and an average target price of $26.67.

MGIC Investment Price Performance

Shares of MTG stock traded up $0.03 during trading hours on Thursday, hitting $27.95. The company's stock had a trading volume of 339,617 shares, compared to its average volume of 2,152,981. The business has a fifty day moving average of $26.81 and a 200-day moving average of $25.52. The stock has a market cap of $6.44 billion, a price-to-earnings ratio of 9.16, a P/E/G ratio of 2.04 and a beta of 0.90. MGIC Investment has a twelve month low of $21.94 and a twelve month high of $28.67. The company has a current ratio of 1.46, a quick ratio of 1.46 and a debt-to-equity ratio of 0.13.

MGIC Investment (NYSE:MTG - Get Free Report) last released its quarterly earnings results on Wednesday, July 30th. The insurance provider reported $0.82 EPS for the quarter, beating the consensus estimate 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 net margin of 62.58% and a return on equity of 14.73%. The company's quarterly revenue was down .3% on a year-over-year basis. During the same period in the prior year, the business earned $0.77 earnings per share.

Institutional Investors Weigh In On MGIC Investment

A number of large investors have recently added to or reduced their stakes in the company. JPMorgan Chase & Co. grew its holdings in MGIC Investment by 13.4% during the 2nd quarter. JPMorgan Chase & Co. now owns 18,331,120 shares of the insurance provider's stock valued at $510,338,000 after purchasing an additional 2,168,940 shares in the last quarter. LSV Asset Management grew its holdings in MGIC Investment by 2.9% during the 1st quarter. LSV Asset Management now owns 10,888,437 shares of the insurance provider's stock worth $269,815,000 after acquiring an additional 310,095 shares in the last quarter. First Trust Advisors LP grew its holdings in MGIC Investment by 48.1% during the 2nd quarter. First Trust Advisors LP now owns 7,302,263 shares of the insurance provider's stock worth $203,295,000 after acquiring an additional 2,370,403 shares in the last quarter. AQR Capital Management LLC grew its holdings in MGIC Investment by 92.4% during the 2nd quarter. AQR Capital Management LLC now owns 6,333,091 shares of the insurance provider's stock worth $176,313,000 after acquiring an additional 3,041,446 shares in the last quarter. Finally, Allianz Asset Management GmbH grew its holdings in MGIC Investment by 40.6% during the 2nd quarter. Allianz Asset Management GmbH now owns 5,398,356 shares of the insurance provider's stock worth $150,290,000 after acquiring an additional 1,557,970 shares in the last quarter. 95.58% of the stock is owned by institutional investors and hedge funds.

Insider Transactions at MGIC Investment

In related news, EVP Paula C. Maggio sold 20,000 shares of the firm's stock in a transaction on Friday, May 30th. The shares were sold at an average price of $26.49, for a total transaction of $529,800.00. Following the completion of the sale, the executive vice president directly 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 transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, CEO Timothy J. Mattke sold 139,203 shares of the firm's stock in a transaction on Thursday, August 7th. The shares were sold at an average price of $26.54, for a total transaction of $3,694,447.62. Following the sale, the chief executive officer directly owned 1,100,994 shares of the company's stock, valued at approximately $29,220,380.76. The trade was a 11.22% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 189,203 shares of company stock valued at $5,010,848 over the last 90 days. Corporate insiders own 1.41% of the company's stock.

MGIC Investment Increases Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Thursday, August 21st. Stockholders of record on Thursday, August 7th were given a $0.15 dividend. The ex-dividend date of this dividend was Thursday, August 7th. This is an increase from MGIC Investment's previous quarterly dividend of $0.13. This represents a $0.60 annualized dividend and a dividend yield of 2.1%. MGIC Investment's dividend payout ratio (DPR) is currently 19.67%.

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.