Analysts Issue Forecasts for MGIC Investment FY2026 Earnings

Key Points

• DOWLING & PARTN initiated FY2026 EPS coverage on MGIC Investment with a forecast of $3.00 per share, slightly below the consensus estimate of $3.08. It also projected FY2027 EPS of $3.10 and FY2028 EPS of $3.15.
• MGIC Investment’s most recent quarter topped earnings expectations, reporting $0.76 EPS versus the expected $0.73, though revenue of $297.08 million came in below estimates and fell 3% year over year.
• The company continues to return capital to shareholders through a $0.15 quarterly dividend and a newly authorized $750 million share repurchase plan, equal to up to 12.4% of outstanding shares.

MGIC Investment Corporation (NYSE:MTG - Free Report) - Equities researchers at DOWLING & PARTN issued their FY2026 EPS estimates for MGIC Investment in a research note issued on Wednesday, May 20th. DOWLING & PARTN analyst G. Dunn anticipates that the insurance provider will earn $3.00 per share for the year. The consensus estimate for MGIC Investment's current full-year earnings is $3.08 per share. DOWLING & PARTN also issued estimates for MGIC Investment's FY2027 earnings at $3.10 EPS and FY2028 earnings at $3.15 EPS.

Other analysts also recently issued research reports about the stock. Weiss Ratings downgraded shares of MGIC Investment from a "buy (a-)" rating to a "buy (b+)" rating in a report on Thursday, February 5th. UBS Group reduced their price target on shares of MGIC Investment from $29.50 to $28.00 and set a "neutral" rating for the company in a research report on Thursday, March 12th. Keefe, Bruyette & Woods increased their price target on shares of MGIC Investment from $28.00 to $29.00 and gave the company a "market perform" rating in a research report on Friday, April 10th. Barclays reduced their price target on shares of 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. Finally, 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 target for the company. One analyst has rated the stock with a Buy rating and four have given a Hold rating to the company's stock. Based on data from MarketBeat, the company has an average rating of "Hold" and an average target price of $28.25.

MGIC Investment Stock Performance

Shares of MTG stock opened at $25.83 on Thursday. The firm has a 50-day moving average of $26.77 and a 200-day moving average of $27.36. The company has a market cap of $5.46 billion, a P/E ratio of 8.20, a P/E/G ratio of 1.78 and a beta of 0.71. 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 one year low of $24.77 and a one year high of $29.97.

MGIC Investment (NYSE:MTG - Get Free Report) last announced its earnings results on Wednesday, April 29th. The insurance provider reported $0.76 EPS for the quarter, beating the consensus estimate of $0.73 by $0.03. The company had revenue of $297.08 million during the quarter, compared to the consensus estimate of $303.12 million. MGIC Investment had a net margin of 59.63% and a return on equity of 14.01%. The firm's revenue for the quarter was down 3.0% on a year-over-year basis. During the same quarter in the prior year, the company posted $0.75 earnings per share.

MGIC Investment Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Thursday, May 21st. Stockholders of record on Wednesday, May 6th were given a $0.15 dividend. This represents a $0.60 dividend on an annualized basis and a dividend yield of 2.3%. The ex-dividend date was Wednesday, May 6th. MGIC Investment's dividend payout ratio (DPR) is 19.05%.

MGIC Investment announced that its Board of Directors has authorized a share repurchase plan on Thursday, April 23rd that authorizes the company to repurchase $750.00 million in outstanding shares. This repurchase authorization authorizes the insurance provider to repurchase up to 12.4% of its shares through open market purchases. Shares repurchase plans are usually a sign that the company's board of directors believes its stock is undervalued.

Insider Buying and Selling

In other news, CEO Timothy J. Mattke sold 139,202 shares of the firm's stock in a transaction that occurred on Thursday, April 2nd. The shares were sold at an average price of $26.49, for a total value of $3,687,460.98. Following the completion of the transaction, the chief executive officer directly owned 1,118,005 shares in the company, valued at approximately $29,615,952.45. This trade represents a 11.07% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, COO Salvatore A. Miosi sold 10,931 shares of the firm's stock in a transaction that occurred on Wednesday, April 1st. The shares were sold at an average price of $26.25, for a total transaction of $286,938.75. Following the completion of the transaction, the chief operating officer owned 590,951 shares of the company's stock, valued at $15,512,463.75. This trade represents a 1.82% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 1.34% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On MGIC Investment

A number of large investors have recently modified their holdings of the company. Compound Planning Inc. boosted its position in shares of MGIC Investment by 5.3% in the third quarter. Compound Planning Inc. now owns 7,788 shares of the insurance provider's stock valued at $221,000 after acquiring an additional 389 shares during the period. SBI Securities Co. Ltd. boosted its position in shares of MGIC Investment by 61.1% in the third quarter. SBI Securities Co. Ltd. now owns 1,041 shares of the insurance provider's stock valued at $30,000 after acquiring an additional 395 shares during the period. Waddell & Associates LLC raised its stake in MGIC Investment by 5.3% in the third quarter. Waddell & Associates LLC now owns 8,090 shares of the insurance provider's stock valued at $230,000 after purchasing an additional 410 shares in the last quarter. Clearstead Advisors LLC raised its stake in MGIC Investment by 24.7% in the third quarter. Clearstead Advisors LLC now owns 2,209 shares of the insurance provider's stock valued at $63,000 after purchasing an additional 438 shares in the last quarter. Finally, Oregon Public Employees Retirement Fund raised its stake in MGIC Investment by 1.1% in the first 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 in the last quarter. 95.58% of the stock is currently owned by institutional investors.

About MGIC Investment

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.

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