Keefe, Bruyette & Woods Issues Positive Forecast for MGIC Investment (NYSE:MTG) Stock Price

Key Points

• Keefe, Bruyette & Woods raised MGIC Investment’s price target from $29 to $30 while maintaining a “market perform” rating. The broader analyst consensus remains “Hold,” with a $29.80 target.
• MGIC Investment reported quarterly EPS of $0.87, beating estimates of $0.76, although revenue of $295.39 million declined 2.9% year over year and fell slightly short of expectations.
• The company authorized a $750 million stock-repurchase program, allowing it to buy back up to 12.4% of outstanding shares; institutional investors own 95.58% of the stock.

MGIC Investment (NYSE:MTG - Get Free Report) had its price target raised by Keefe, Bruyette & Woods from $29.00 to $30.00 in a research note issued to investors on Friday,Benzinga reports. The brokerage currently has a "market perform" rating on the insurance provider's stock. Keefe, Bruyette & Woods' price objective points to a potential downside of 1.38% from the stock's current price.

A number of other equities research analysts have also issued reports on the company. Royal Bank Of Canada initiated coverage on MGIC Investment in a research note on Friday, May 22nd. They issued a "sector perform" rating and a $28.00 price target for the company. Roth Capital reiterated a "buy" rating and set a $35.00 target price on shares of MGIC Investment in a research report on Thursday. Barclays decreased their target price on MGIC Investment from $29.00 to $28.00 and set an "equal weight" rating on the stock in a research note on Friday, May 1st. Finally, Weiss Ratings raised MGIC Investment from a "buy (b)" rating to a "buy (b+)" rating in a report on Tuesday, July 7th. Two research analysts have rated the stock with a Buy rating and four have issued a Hold rating to the stock. According to MarketBeat, MGIC Investment has a consensus rating of "Hold" and a consensus price target of $29.80.

MGIC Investment Trading Down 0.5%

MGIC Investment stock opened at $30.42 on Friday. MGIC Investment has a 12-month low of $24.69 and a 12-month high of $31.89. The firm has a market capitalization of $6.43 billion, a price-to-earnings ratio of 9.51, a P/E/G ratio of 2.11 and a beta of 0.67. The firm has a 50 day moving average of $27.34 and a 200 day moving average of $26.94. The company has a current ratio of 1.14, a quick ratio of 1.14 and a debt-to-equity ratio of 0.13.

MGIC Investment (NYSE:MTG - Get Free Report) last posted its quarterly earnings results on Wednesday, July 29th. The insurance provider reported $0.87 earnings per share for the quarter, topping analysts' consensus estimates of $0.76 by $0.11. The business had revenue of $295.39 million during the quarter, compared to analyst estimates of $297.54 million. MGIC Investment had a net margin of 59.20% and a return on equity of 13.83%. The company's revenue was down 2.9% on a year-over-year basis. During the same period in the prior year, the business posted $0.82 earnings per share. As a group, research analysts predict that MGIC Investment will post 3.05 earnings per share for the current year.

MGIC Investment declared that its board has authorized a stock repurchase plan on Thursday, April 23rd that permits the company to buyback $750.00 million in shares. This buyback authorization permits the insurance provider to buy up to 12.4% of its stock through open market purchases. Stock buyback plans are generally a sign that the company's board of directors believes its stock is undervalued.

Insider Buying and Selling

In other news, EVP Paula C. Maggio sold 20,937 shares of the company's stock in a transaction that occurred on Friday, May 29th. The stock was sold at an average price of $25.55, for a total transaction of $534,940.35. Following the sale, the executive vice president directly owned 169,620 shares of the company's stock, valued at $4,333,791. This represents a 10.99% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, COO Salvatore A. Miosi sold 30,000 shares of the company's stock in a transaction on Monday, June 8th. The shares were sold at an average price of $25.38, for a total transaction of $761,400.00. Following the sale, the chief operating officer directly owned 560,951 shares in the company, valued at approximately $14,236,936.38. The trade was a 5.08% 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. Insiders own 1.34% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in MTG. GAMMA Investing LLC raised its position in MGIC Investment by 9.6% during the second quarter. GAMMA Investing LLC now owns 7,993 shares of the insurance provider's stock valued at $225,000 after purchasing an additional 701 shares during the period. Harbor Investment Advisory LLC raised its stake in shares of MGIC Investment by 613.0% in the second quarter. Harbor Investment Advisory LLC now owns 2,574 shares of the insurance provider's stock valued at $73,000 after acquiring an additional 2,213 shares during the period. Militia Capital Management LLC bought a new stake in MGIC Investment in the first quarter worth about $788,000. NewEdge Advisors LLC boosted its position in shares of MGIC Investment by 1.8% during the first quarter. NewEdge Advisors LLC now owns 141,211 shares of the insurance provider's stock valued at $3,707,000 after buying an additional 2,559 shares during the period. Finally, Bank of America Corp DE grew its stake in shares of MGIC Investment by 15.4% during the first quarter. Bank of America Corp DE now owns 1,415,378 shares of the insurance provider's stock valued at $37,154,000 after buying an additional 188,519 shares during the last quarter. Institutional investors own 95.58% 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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