MGIC Investment Corporation $MTG Shares Sold by Vanguard Group Inc.

Key Points

• Vanguard Group trimmed its stake in MGIC by 3.3%, selling about 1.01 million shares and leaving it with 29.78 million shares (13.31% ownership) valued at roughly $870 million.
• The board authorized a $750 million share buyback (up to 12.4% of shares) and declared a quarterly dividend of $0.15 ($0.60 annualized, ~2.3% yield), signaling a focus on shareholder returns.
• MGIC reported Q1 EPS of $0.76 (beat $0.73 consensus) despite revenue falling 3% year-over-year; analysts hold a consensus "Hold" rating with a $28.25 target.

Vanguard Group Inc. lowered its position in MGIC Investment Corporation (NYSE:MTG - Free Report) by 3.3% during the fourth quarter, according to its most recent disclosure with the Securities and Exchange Commission. The fund owned 29,775,199 shares of the insurance provider's stock after selling 1,007,558 shares during the quarter. Vanguard Group Inc. owned 13.31% of MGIC Investment worth $870,031,000 as of its most recent filing with the Securities and Exchange Commission.

Other hedge funds also recently added to or reduced their stakes in the company. Alpine Bank Wealth Management purchased a new position in MGIC Investment in the third quarter valued at about $28,000. Newbridge Financial Services Group Inc. purchased a new position in MGIC Investment in the third quarter valued at about $28,000. SBI Securities Co. Ltd. raised its position in 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 purchasing an additional 395 shares during the period. V Square Quantitative Management LLC purchased a new position in MGIC Investment in the fourth quarter valued at about $36,000. Finally, Root Financial Partners LLC purchased a new position in MGIC Investment in the third quarter valued at about $38,000. 95.58% of the stock is owned by hedge funds and other institutional investors.

MGIC Investment Stock Down 1.0%

Shares of NYSE MTG opened at $26.22 on Friday. MGIC Investment Corporation has a 1 year low of $24.77 and a 1 year high of $29.97. The firm has a market cap of $5.63 billion, a price-to-earnings ratio of 8.32, a PEG ratio of 1.84 and a beta of 0.71. The company has a debt-to-equity ratio of 0.13, a quick ratio of 1.52 and a current ratio of 1.14. The stock's 50-day simple moving average is $26.86 and its 200-day simple moving average is $27.49.

MGIC Investment (NYSE:MTG - Get Free Report) last announced its earnings results on Wednesday, April 29th. The insurance provider reported $0.76 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.73 by $0.03. MGIC Investment had a return on equity of 14.01% and a net margin of 59.63%.The business had revenue of $297.08 million for the quarter, compared to analyst estimates of $303.12 million. During the same period in the previous year, the company earned $0.75 earnings per share. The company's revenue for the quarter was down 3.0% compared to the same quarter last year. As a group, equities analysts anticipate that MGIC Investment Corporation will post 3.07 earnings per share for the current fiscal year.

MGIC Investment Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Thursday, May 21st. Stockholders of record on Wednesday, May 6th will be given a dividend of $0.15 per share. This represents a $0.60 dividend on an annualized basis and a dividend yield of 2.3%. The ex-dividend date of this dividend is Wednesday, May 6th. MGIC Investment's payout ratio is presently 19.05%.

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

Wall Street Analysts Forecast Growth

Several research analysts have commented on MTG shares. Barclays cut their price objective on MGIC Investment from $29.00 to $28.00 and set an "equal weight" rating on the stock in a research report on Friday. Keefe, Bruyette & Woods raised their price objective on MGIC Investment from $28.00 to $29.00 and gave the company a "market perform" rating in a research report on Friday, April 10th. UBS Group cut their price objective on MGIC Investment from $29.50 to $28.00 and set a "neutral" rating on the stock in a research report on Thursday, March 12th. Finally, Weiss Ratings lowered MGIC Investment from a "buy (a-)" rating to a "buy (b+)" rating in a research report on Thursday, February 5th. One analyst has rated the stock with a Buy rating and four have assigned a Hold rating to the company's stock. According to data from MarketBeat.com, the stock presently has a consensus rating of "Hold" and a consensus target price of $28.25.

Insider Transactions at MGIC Investment

In other news, CEO Timothy J. Mattke sold 139,202 shares of MGIC Investment stock in a transaction dated Thursday, April 2nd. The stock was sold at an average price of $26.49, for a total transaction of $3,687,460.98. Following the sale, the chief executive officer directly owned 1,118,005 shares of the company's stock, valued at approximately $29,615,952.45. The trade was a 11.07% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, 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 10,931 shares of MGIC Investment 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 sale, the chief operating officer directly owned 590,951 shares in the company, valued at approximately $15,512,463.75. The trade was 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. Over the last ninety days, insiders have sold 200,133 shares of company stock valued at $5,342,700. 1.34% of the stock is currently owned by insiders.

MGIC Investment News Summary

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

• Positive Sentiment: Board authorizes a $750M share buyback and management reiterated capital strength, which supports shareholder returns and could boost EPS over time. Board authorizes $750M buyback
• Positive Sentiment: Company announced an upcoming US$0.15 dividend — a direct cash return that tends to support the share price and attract income-focused investors. Dividend coverage
• Positive Sentiment: Q1 EPS beat: MGIC reported $0.76 vs. $0.73 consensus (strong margins and ROE highlighted), which validates underwriting profitability despite softer revenue. Earnings beat
• Positive Sentiment: Earnings call emphasized capital strength and allowed the firm to pursue buybacks and dividends while maintaining reserves — a reassuring signal for investors focused on balance-sheet durability. Earnings call highlights
• Neutral Sentiment: Full Q1 earnings call transcripts and coverage are available for deeper review; they provide detail but no major surprises beyond the items above. Earnings transcript
• Negative Sentiment: Revenue missed estimates and was down year-over-year, which raises questions about top-line momentum even though earnings held up via margins. Revenue miss
• Negative Sentiment: Barclays lowered its price target from $29 to $28 and set an "equal weight" rating, signaling limited near-term upside from the street and adding downward pressure. Barclays price-target cut

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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