MGIC Investment Corporation (NYSE:MTG) Declares Quarterly Dividend of $0.15

Key Points

• MGIC Investment Corporation declared a quarterly dividend of $0.15 per share, which represents a 15.4% increase from the previous dividend of $0.13. The ex-dividend date is August 7th, and the annualized yield is 2.34%.
• The company announced a stock repurchase program authorizing $750 million to buy back up to 12.5% of its shares, suggesting management believes the stock is undervalued.
• MGIC Investment has a payout ratio of 17.1%, well covered by expected earnings, as analysts project an EPS of $2.81 next year, indicating the ability to sustain its dividend payments.

MGIC Investment Corporation (NYSE:MTG - Get Free Report) announced a quarterly dividend on Friday, July 25th, Wall Street Journal reports. Shareholders of record on Thursday, August 7th will be given a dividend of 0.15 per share by the insurance provider on Thursday, August 21st. This represents a $0.60 dividend on an annualized basis and a yield of 2.34%. The ex-dividend date of this dividend is Thursday, August 7th. This is a 15.4% increase from MGIC Investment's previous quarterly dividend of $0.13.

MGIC Investment has a payout ratio of 17.1% indicating that its dividend is sufficiently covered by earnings. Analysts expect MGIC Investment to earn $2.81 per share next year, which means the company should continue to be able to cover its $0.52 annual dividend with an expected future payout ratio of 18.5%.

MGIC Investment Stock Up 0.3%

Shares of NYSE MTG traded up $0.07 during mid-day trading on Friday, reaching $25.63. The company had a trading volume of 1,660,279 shares, compared to its average volume of 2,185,456. The firm has a 50 day simple moving average of $26.58 and a two-hundred day simple moving average of $25.16. MGIC Investment has a 52-week low of $21.94 and a 52-week high of $28.67. The company has a current ratio of 1.25, a quick ratio of 1.25 and a debt-to-equity ratio of 0.13. The stock has a market cap of $6.09 billion, a P/E ratio of 8.51, a PEG ratio of 2.76 and a beta of 0.89.

MGIC Investment (NYSE:MTG - Get Free Report) last issued its quarterly earnings data on Wednesday, April 30th. The insurance provider reported $0.75 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.66 by $0.09. MGIC Investment had a return on equity of 14.96% and a net margin of 63.49%. The company had revenue of $306.23 million for the quarter, compared to analyst estimates of $306.66 million. During the same quarter last year, the company posted $0.65 earnings per share. The business's quarterly revenue was up 4.0% compared to the same quarter last year. Sell-side analysts predict that MGIC Investment will post 2.71 earnings per share for the current year.

Analyst Upgrades and Downgrades

Several research firms have issued reports on MTG. Keefe, Bruyette & Woods boosted their target price 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. Barclays increased 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. Finally, Compass Point restated a "neutral" rating and set a $28.00 target price (up from $27.00) on shares of MGIC Investment in a research report on Friday, May 23rd. One investment analyst has rated the stock with a sell rating, five have issued a hold rating and two have given a buy rating to the company's stock. According to data from MarketBeat, MGIC Investment has an average rating of "Hold" and a consensus price target of $26.88.

MGIC Investment declared that its board has initiated a stock repurchase program on Thursday, April 24th that permits the company to buyback $750.00 million in shares. This buyback authorization permits the insurance provider to purchase up to 12.5% of its shares through open market purchases. Shares buyback programs are typically a sign that the company's leadership believes its stock is undervalued.

Insider Activity

In related news, EVP Paula C. Maggio sold 20,000 shares of MGIC Investment stock in a transaction dated Friday, May 30th. The stock was sold at an average price of $26.49, for a total transaction of $529,800.00. Following the completion of the sale, the executive vice president owned 157,395 shares in the company, valued at approximately $4,169,393.55. This trade represents a 11.27% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. 1.05% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On MGIC Investment

A number of hedge funds and other institutional investors have recently modified their holdings of MTG. Goldman Sachs Group Inc. boosted its stake in MGIC Investment by 6.7% in the 1st quarter. Goldman Sachs Group Inc. now owns 3,103,366 shares of the insurance provider's stock worth $76,901,000 after buying an additional 195,895 shares during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. acquired a new stake in shares of MGIC Investment in the first quarter worth approximately $2,397,000. Finally, Geneos Wealth Management Inc. grew its holdings in 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. 95.58% of the stock is currently owned by hedge funds and other institutional investors.

About MGIC Investment

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.

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