MGIC Investment (NYSE:MTG) Posts Earnings Results, Beats Estimates By $0.04 EPS

Key Points

• MGIC Investment beat quarterly earnings estimates: EPS was $0.85 versus the $0.81 consensus, while revenue of $299.08 million slightly exceeded estimates. Revenue declined 1.8% year over year.
• The company declared a quarterly dividend of $0.17 per share, equivalent to $0.68 annually and a 2.3% yield.
• Analysts’ average rating is Hold, with an average price target of $30.80; shares traded at $29.04 after rising $0.40 on Wednesday.

MGIC Investment (NYSE:MTG - Get Free Report) announced its earnings results on Wednesday. The insurance provider reported $0.85 earnings per share for the quarter, topping analysts' consensus estimates of $0.81 by $0.04, FiscalAI reports. The company had revenue of $299.08 million for the quarter, compared to analyst estimates of $298.66 million. MGIC Investment had a return on equity of 13.90% and a net margin of 59.20%. The firm's quarterly revenue was down 1.8% compared to the same quarter last year. During the same quarter last year, the company earned $0.83 earnings per share.

MGIC Investment Price Performance

NYSE:MTG traded up $0.40 during trading hours on Wednesday, reaching $29.04. 2,415,801 shares of the company were exchanged, compared to its average volume of 2,249,059. The business has a 50 day moving average of $28.90 and a 200 day moving average of $27.79. MGIC Investment has a 1-year low of $24.69 and a 1-year high of $31.89. The company has a debt-to-equity ratio of 0.13, a current ratio of 1.19 and a quick ratio of 1.19. The company has a market capitalization of $5.96 billion, a P/E ratio of 8.92, a P/E/G ratio of 1.01 and a beta of 0.64.

MGIC Investment Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Monday, November 23rd. Investors of record on Thursday, November 12th will be given a dividend of $0.17 per share. The ex-dividend date of this dividend is Thursday, November 12th. This represents a $0.68 dividend on an annualized basis and a yield of 2.3%. MGIC Investment's dividend payout ratio is currently 21.25%.

Insider Buying and Selling at MGIC Investment

In other news, EVP Paula C. Maggio sold 20,000 shares of the stock in a transaction on Friday, August 7th. The stock was sold at an average price of $30.30, for a total transaction of $606,000.00. Following the sale, the executive vice president directly owned 149,620 shares of the company's stock, valued at approximately $4,533,486. This represents a 11.79% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, COO Salvatore A. Miosi sold 30,000 shares of the firm's stock in a transaction on Thursday, October 1st. The stock was sold at an average price of $26.06, for a total value of $781,800.00. Following the completion of the transaction, the chief operating officer owned 440,951 shares in the company, valued at $11,491,183.06. The trade was a 6.37% 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. Insiders sold 217,114 shares of company stock valued at $5,906,200 in the last three months. Corporate insiders own 1.34% of the company's stock.

Analyst Ratings Changes

A number of research analysts have commented on the company. Keefe, Bruyette & Woods upped their price objective on MGIC Investment from $29.00 to $30.00 and gave the company a "market perform" rating in a report on Friday, July 31st. Royal Bank Of Canada lifted their target price on MGIC Investment from $28.00 to $32.00 and gave the stock a "sector perform" rating in a report on Friday, July 31st. BTIG Research assumed coverage on shares of MGIC Investment in a research report on Tuesday, September 22nd. They issued a "hold" rating for the company. Weiss Ratings upgraded shares of MGIC Investment from a "buy (b+)" rating to a "buy (a-)" rating in a research note on Wednesday, August 19th. Finally, Zacks Research lowered shares of MGIC Investment from a "strong-buy" rating to a "hold" rating in a research report on Monday, October 19th. One 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 company's stock. According to data from MarketBeat.com, the company currently has an average rating of "Hold" and an average price target of $30.80.

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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