FY2028 EPS Forecast for MGIC Investment Decreased by Analyst

Key Points

• Zacks Research lowered its FY2028 EPS estimate for MGIC Investment to $3.22 from $3.28, though that is still above the current consensus forecast of $3.05 per share.
• MGIC recently beat quarterly earnings expectations, reporting $0.76 EPS versus the $0.73 consensus, even as revenue came in slightly below estimates at $297.08 million.
• Sentiment on the stock remains cautious, with analysts maintaining an average "Hold" rating and a consensus target price of $28.25, while insiders have also been selling shares.

MGIC Investment Corporation (NYSE:MTG - Free Report) - Zacks Research reduced their FY2028 earnings estimates for shares of MGIC Investment in a research report issued to clients and investors on Tuesday, June 30th. Zacks Research analyst Team now expects that the insurance provider will post earnings of $3.22 per share for the year, down from their previous forecast of $3.28. The consensus estimate for MGIC Investment's current full-year earnings is $3.05 per share.

MGIC Investment (NYSE:MTG - Get Free Report) last announced its quarterly 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. The business 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 business's revenue was down 3.0% compared to the same quarter last year. During the same quarter last year, the firm earned $0.75 EPS.

MTG has been the subject of several other research reports. Royal Bank Of Canada began coverage on MGIC Investment in a research note on Friday, May 22nd. They set a "sector perform" rating and a $28.00 target price for the company. UBS Group decreased their price target on MGIC Investment from $29.50 to $28.00 and set a "neutral" rating on the stock in a research note on Thursday, March 12th. Barclays lowered their price target on MGIC Investment from $29.00 to $28.00 and set an "equal weight" rating for the company in a report on Friday, May 1st. Weiss Ratings reissued a "buy (b)" rating on shares of MGIC Investment in a research report on Monday, June 15th. Finally, Keefe, Bruyette & Woods boosted their price objective on shares of MGIC Investment from $28.00 to $29.00 and gave the company a "market perform" rating in a report on Friday, April 10th. One investment analyst has rated the stock with a Buy rating and four have given a Hold rating to the stock. According to MarketBeat.com, the stock presently has an average rating of "Hold" and a consensus target price of $28.25.

MGIC Investment Trading Down 0.2%

MTG opened at $28.18 on Wednesday. MGIC Investment has a one year low of $24.69 and a one year high of $29.97. The stock has a market capitalization of $5.96 billion, a PE ratio of 8.94, a P/E/G ratio of 1.95 and a beta of 0.68. The business's 50 day moving average price is $26.52 and its 200 day moving average price is $27.00. The company has a debt-to-equity ratio of 0.13, a quick ratio of 1.14 and a current ratio of 1.14.

Hedge Funds Weigh In On MGIC Investment

Hedge funds and other institutional investors have recently bought and sold shares of the company. Newbridge Financial Services Group Inc. acquired a new position in MGIC Investment in the 3rd quarter valued at about $28,000. V Square Quantitative Management LLC acquired a new stake in shares of MGIC Investment during the fourth quarter worth about $36,000. SBI Securities Co. Ltd. lifted its position in shares of MGIC Investment by 40.3% during the fourth quarter. SBI Securities Co. Ltd. now owns 1,461 shares of the insurance provider's stock worth $43,000 after purchasing an additional 420 shares in the last quarter. Geneos Wealth Management Inc. boosted its stake in shares of MGIC Investment by 88.0% in the first quarter. Geneos Wealth Management Inc. now owns 1,745 shares of the insurance provider's stock valued at $43,000 after purchasing an additional 817 shares during the period. Finally, Root Financial Partners LLC boosted its stake in shares of MGIC Investment by 100.7% in the first quarter. Root Financial Partners LLC now owns 3,022 shares of the insurance provider's stock valued at $79,000 after purchasing an additional 1,516 shares during the period. 95.58% of the stock is currently owned by hedge funds and other institutional investors.

Insider Buying and Selling at MGIC Investment

In other news, COO Salvatore A. Miosi sold 30,000 shares of the firm's stock in a transaction on Monday, June 8th. The stock was sold at an average price of $25.38, for a total transaction of $761,400.00. Following the completion of the transaction, the chief operating officer directly owned 560,951 shares in the company, valued at $14,236,936.38. This trade represents a 5.08% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Paula C. Maggio sold 20,937 shares of MGIC Investment stock in a transaction on Friday, May 29th. The shares were sold at an average price of $25.55, for a total value of $534,940.35. Following the completion of the sale, the executive vice president directly owned 169,620 shares of the company's stock, valued at $4,333,791. The trade was a 10.99% 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. Insiders have sold a total of 190,139 shares of company stock valued at $4,983,801 over the last quarter. 1.34% of the stock is owned by company insiders.

MGIC Investment declared that its board has approved a stock buyback program on Thursday, April 23rd that allows the company to repurchase $750.00 million in shares. This repurchase authorization allows the insurance provider to reacquire up to 12.4% of its stock through open market purchases. Stock repurchase programs are usually an indication that the company's leadership believes its stock is undervalued.

MGIC Investment Dividend Announcement

The business also recently announced 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 annualized dividend and a yield of 2.1%. The ex-dividend date was Wednesday, May 6th. MGIC Investment's dividend payout ratio (DPR) is 19.05%.

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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