Jefferies Financial Group Inc. Acquires 259,039 Shares of MGIC Investment Corporation $MTG

Key Points

• Jefferies Financial Group significantly increased its stake in MGIC Investment, buying 259,039 additional shares in the fourth quarter and lifting its holdings by 245.3% to 364,650 shares worth about $10.7 million.
• MGIC Investment reported better-than-expected quarterly earnings of $0.76 per share, topping estimates of $0.73, though revenue of $297.1 million came in below forecasts and declined 3% year over year.
• The company announced a $750 million share repurchase program and recently paid a quarterly dividend of $0.15 per share, which annualizes to a 2.3% yield.

Jefferies Financial Group Inc. raised its holdings in MGIC Investment Corporation (NYSE:MTG - Free Report) by 245.3% in the 4th quarter, according to the company in its most recent 13F filing with the SEC. The fund owned 364,650 shares of the insurance provider's stock after purchasing an additional 259,039 shares during the quarter. Jefferies Financial Group Inc. owned approximately 0.16% of MGIC Investment worth $10,655,000 as of its most recent SEC filing.

Several other institutional investors have also recently bought and sold shares of the business. Compound Planning Inc. raised its position in MGIC Investment by 5.3% in the 3rd quarter. Compound Planning Inc. now owns 7,788 shares of the insurance provider's stock valued at $221,000 after purchasing an additional 389 shares during the last quarter. SBI Securities Co. Ltd. raised its position in shares of MGIC Investment by 61.1% during the third quarter. SBI Securities Co. Ltd. now owns 1,041 shares of the insurance provider's stock worth $30,000 after acquiring an additional 395 shares during the last quarter. Waddell & Associates LLC raised its position in shares of MGIC Investment by 5.3% during the third quarter. Waddell & Associates LLC now owns 8,090 shares of the insurance provider's stock worth $230,000 after acquiring an additional 410 shares during the last quarter. Clearstead Advisors LLC raised its position in shares of MGIC Investment by 24.7% during the third quarter. Clearstead Advisors LLC now owns 2,209 shares of the insurance provider's stock worth $63,000 after acquiring an additional 438 shares during the last quarter. Finally, Whittier Trust Co. of Nevada Inc. raised its position in shares of MGIC Investment by 58.0% during the third quarter. Whittier Trust Co. of Nevada Inc. now owns 1,365 shares of the insurance provider's stock worth $38,000 after acquiring an additional 501 shares during the last quarter. Institutional investors own 95.58% of the company's stock.

MGIC Investment News Summary

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

• Positive Sentiment: Zacks Research raised its FY2026 EPS estimate for MGIC Investment to $3.13 from $3.09, and also nudged Q1 2027 estimates higher to $0.81 from $0.80, suggesting slightly better near-term earnings expectations.
• Positive Sentiment: The firm also increased its Q3 2026 estimate to $0.79 from $0.78 and Q4 2027 estimate to $0.88 from $0.87, reinforcing the view that MGIC Investment’s earnings profile remains resilient.
• Neutral Sentiment: Even after the revisions, Zacks Research’s forecasts remain close to consensus, with full-year current earnings still expected at $3.06 per share, so the changes are incremental rather than a major outlook shift.
• Negative Sentiment: Zacks Research cut its Q2 2027 EPS estimate to $0.82 from $0.86, and trimmed FY2027 earnings to $3.35 from $3.37, which may have added some pressure on the stock.
• Negative Sentiment: The analyst also lowered its Q1 2028 estimate to $0.87 from $0.88, a small reduction that adds to the mixed tone of the overall revisions.

Wall Street Analyst Weigh In

A number of equities research analysts have recently weighed in on MTG shares. UBS Group dropped their target price on MGIC Investment from $29.50 to $28.00 and set a "neutral" rating for the company in a research report on Thursday, March 12th. Royal Bank Of Canada started coverage on MGIC Investment in a research report on Friday. They set a "sector perform" rating and a $28.00 target price for the company. Weiss Ratings downgraded MGIC Investment from a "buy (a-)" rating to a "buy (b+)" rating in a research report on Thursday, February 5th. Barclays dropped their target price on 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, Keefe, Bruyette & Woods boosted their target price on MGIC Investment from $28.00 to $29.00 and gave the stock a "market perform" rating in a research report on Friday, April 10th. One equities research analyst has rated the stock with a Buy rating and four have issued a Hold rating to the stock. Based on data from MarketBeat, the stock currently has a consensus rating of "Hold" and a consensus price target of $28.25.

MGIC Investment Trading Up 0.1%

MTG stock opened at $26.04 on Monday. The business has a fifty day moving average of $26.78 and a 200-day moving average of $27.40. The company has a market cap of $5.51 billion, a P/E ratio of 8.27, a PEG ratio of 1.78 and a beta of 0.71. The company has a quick ratio of 1.14, a current ratio of 1.14 and a debt-to-equity ratio of 0.13. MGIC Investment Corporation has a twelve month low of $24.77 and a twelve month high of $29.97.

MGIC Investment (NYSE:MTG - Get Free Report) last released its quarterly earnings data on Wednesday, April 29th. The insurance provider reported $0.76 EPS for the quarter, beating analysts' consensus estimates of $0.73 by $0.03. The business had revenue of $297.08 million during the quarter, compared to the consensus estimate of $303.12 million. MGIC Investment had a return on equity of 14.01% and a net margin of 59.63%.The firm's revenue 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. As a group, equities research analysts expect that MGIC Investment Corporation will post 3.08 EPS for the current year.

MGIC Investment Dividend Announcement

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

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

Insider Transactions at MGIC Investment

In related news, COO Salvatore A. Miosi sold 10,931 shares of the company's stock in a transaction dated Wednesday, April 1st. The stock was sold at an average price of $26.25, for a total value of $286,938.75. Following the completion of the sale, the chief operating officer owned 590,951 shares in the company, valued at approximately $15,512,463.75. This represents a 1.82% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Timothy J. Mattke sold 139,202 shares of the company's stock in a transaction dated 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 sale, the chief executive officer owned 1,118,005 shares of the company's stock, valued at $29,615,952.45. This represents a 11.07% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Corporate insiders own 1.34% of the company's stock.

MGIC Investment Company Profile

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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