FY2025 EPS Forecast for MGIC Investment Boosted by Analyst

Key Points

• Roth Capital increased its FY2025 earnings per share forecast for MGIC Investment from $2.90 to $3.00, exceeding the consensus estimate of $2.71 per share.
• MGIC Investment has recently announced a quarterly dividend increase to $0.15 per share, up from $0.13, reflecting a commitment to returning value to shareholders.
• The company's board approved a $750 million share buyback plan, indicating a belief that the stock is currently undervalued.

MGIC Investment Corporation (NYSE:MTG - Free Report) - Equities research analysts at Roth Capital lifted their FY2025 earnings per share estimates for shares of MGIC Investment in a research report issued on Monday, August 4th. Roth Capital analyst H. Fong now anticipates that the insurance provider will post earnings per share of $3.00 for the year, up from their prior forecast of $2.90. The consensus estimate for MGIC Investment's current full-year earnings is $2.71 per share.

MTG has been the subject of a number of other research reports. Compass Point reiterated a "neutral" rating and issued a $28.00 price objective (up previously from $27.00) on shares of MGIC Investment in a research report on Friday, May 23rd. Keefe, Bruyette & Woods raised their price objective on MGIC Investment from $26.00 to $27.00 and gave the stock a "market perform" rating in a research report on Monday, July 7th. Finally, Barclays raised their price objective on MGIC Investment from $26.00 to $27.00 and gave the stock an "equal weight" rating in a research report on Tuesday, July 8th. One research analyst has rated the stock with a sell rating, five have issued a hold rating and one has assigned a buy rating to the company. According to MarketBeat.com, MGIC Investment has a consensus rating of "Hold" and a consensus target price of $26.43.

MGIC Investment Price Performance

Shares of MTG stock opened at $26.70 on Tuesday. The stock has a 50 day moving average of $26.51 and a two-hundred day moving average of $25.28. 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 has a 12 month low of $21.94 and a 12 month high of $28.67. The company has a market capitalization of $6.16 billion, a P/E ratio of 8.75, a P/E/G ratio of 1.95 and a beta of 0.90.

MGIC Investment (NYSE:MTG - Get Free Report) last announced its quarterly earnings data on Wednesday, July 30th. The insurance provider reported $0.82 EPS for the quarter, topping analysts' consensus estimates of $0.70 by $0.12. MGIC Investment had a return on equity of 14.73% and a net margin of 62.58%. The company had revenue of $304.25 million during the quarter, compared to the consensus estimate of $306.25 million. During the same quarter last year, the company earned $0.77 EPS. The company's quarterly revenue was down .3% on a year-over-year basis.

Institutional Investors Weigh In On MGIC Investment

A number of hedge funds and other institutional investors have recently bought and sold shares of the business. Haven Private LLC acquired a new stake in MGIC Investment during the 2nd quarter valued at $214,000. Simon Quick Advisors LLC acquired a new stake in MGIC Investment during the 2nd quarter valued at $298,000. Impact Partnership Wealth LLC increased its holdings in MGIC Investment by 6.5% during the 2nd quarter. Impact Partnership Wealth LLC now owns 9,821 shares of the insurance provider's stock valued at $273,000 after purchasing an additional 598 shares in the last quarter. Atria Investments Inc acquired a new stake in MGIC Investment during the 2nd quarter valued at $279,000. Finally, Hantz Financial Services Inc. increased its holdings in MGIC Investment by 3,067.6% during the 2nd quarter. Hantz Financial Services Inc. now owns 1,077 shares of the insurance provider's stock valued at $30,000 after purchasing an additional 1,043 shares in the last quarter. 95.58% of the stock is owned by institutional investors and hedge funds.

Insider Activity at MGIC Investment

In related news, COO Salvatore A. Miosi sold 30,000 shares of the firm's stock in a transaction that occurred on Friday, August 1st. The stock was sold at an average price of $26.22, for a total transaction of $786,600.00. Following the completion of the transaction, the chief operating officer owned 249,401 shares in the company, valued at $6,539,294.22. This trade represents a 10.74% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, EVP Paula C. Maggio sold 20,000 shares of the firm's stock in a transaction that occurred on Friday, May 30th. The stock was sold at an average price of $26.49, for a total value of $529,800.00. Following the transaction, the executive vice president owned 157,395 shares of the company's stock, valued at $4,169,393.55. This trade represents a 11.27% decrease in their position. The disclosure for this sale can be found here. 1.05% of the stock is owned by company insiders.

MGIC Investment announced that its board has authorized a share buyback plan on Thursday, April 24th that allows the company to buyback $750.00 million in shares. This buyback authorization allows the insurance provider to repurchase up to 12.5% of its shares through open market purchases. Shares buyback plans are often a sign that the company's board of directors believes its stock is undervalued.

MGIC Investment Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, August 21st. Investors of record on Thursday, August 7th will be given a dividend of $0.15 per share. This is a boost from MGIC Investment's previous quarterly dividend of $0.13. The ex-dividend date is Thursday, August 7th. This represents a $0.60 annualized dividend and a dividend yield of 2.2%. MGIC Investment's dividend payout ratio is 19.67%.

MGIC Investment Company Profile

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.