Analysts Set MGIC Investment Corporation (NYSE:MTG) Price Target at $26.88

Key Points

• Analysts have assigned a consensus rating of "Hold" for MGIC Investment Corporation (NYSE:MTG), with one sell, five hold, and two buy recommendations. The average twelve-month price target stands at $26.88.
• MGIC Investment recently approved a stock buyback program allowing the repurchase of up to $750 million of its shares, indicating management's belief that the stock may be undervalued.
• The company increased its quarterly dividend to $0.15, up from $0.13, reflecting a 2.34% dividend yield with a payout ratio of 17.28%.

MGIC Investment Corporation (NYSE:MTG - Get Free Report) has been given an average recommendation of "Hold" by the eight research firms that are covering the firm, MarketBeat.com reports. One equities research analyst has rated the stock with a sell recommendation, five have issued a hold recommendation and two have given a buy recommendation to the company. The average 1-year price objective among brokerages that have covered the stock in the last year is $26.88.

Several research analysts have commented on the stock. Barclays upped their price objective on shares of MGIC Investment from $26.00 to $27.00 and gave the stock an "equal weight" rating in a report on Tuesday, July 8th. Keefe, Bruyette & Woods upped their price objective on shares of MGIC Investment from $26.00 to $27.00 and gave the stock a "market perform" rating in a report on Monday, July 7th. Finally, Compass Point reiterated a "neutral" rating and issued a $28.00 price target (up from $27.00) on shares of MGIC Investment in a research note on Friday, May 23rd.

MGIC Investment Trading Up 2.0%

MTG traded up $0.52 during trading on Monday, hitting $25.89. 940,983 shares of the stock traded hands, compared to its average volume of 2,177,979. The firm has a market capitalization of $6.15 billion, a P/E ratio of 8.61, a price-to-earnings-growth ratio of 2.76 and a beta of 0.89. The company has a debt-to-equity ratio of 0.13, a current ratio of 1.25 and a quick ratio of 1.25. The firm has a 50-day moving average of $26.50 and a 200 day moving average of $25.22. MGIC Investment has a 12-month low of $21.94 and a 12-month high of $28.67.

MGIC Investment (NYSE:MTG - Get Free Report) last issued its quarterly earnings data on Wednesday, July 30th. The insurance provider reported $0.82 EPS for the quarter, topping the consensus estimate of $0.70 by $0.12. MGIC Investment had a net margin of 63.49% and a return on equity of 14.96%. The business had revenue of $304.25 million during the quarter, compared to analyst estimates of $306.25 million. During the same period in the prior year, the business earned $0.77 EPS. The company's revenue for the quarter was down .3% on a year-over-year basis. Equities research analysts anticipate that MGIC Investment will post 2.71 EPS for the current year.

MGIC Investment announced that its board has initiated a stock repurchase plan on Thursday, April 24th that authorizes the company to buyback $750.00 million in outstanding shares. This buyback authorization authorizes the insurance provider to buy up to 12.5% of its stock through open market purchases. Stock buyback plans are usually an indication that the company's board of directors believes its stock is undervalued.

MGIC Investment Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, August 21st. Shareholders of record on Thursday, August 7th will be paid 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 of this dividend is Thursday, August 7th. This represents a $0.60 dividend on an annualized basis and a yield of 2.32%. MGIC Investment's dividend payout ratio (DPR) is presently 17.28%.

Insiders Place Their Bets

In related news, EVP Paula C. Maggio sold 20,000 shares of the business's stock in a transaction on Friday, May 30th. The shares were sold at an average price of $26.49, for a total value of $529,800.00. Following the sale, the executive vice president owned 157,395 shares in the company, valued at approximately $4,169,393.55. The trade was a 11.27% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Corporate insiders own 1.05% of the company's stock.

Institutional Investors Weigh In On MGIC Investment

Large investors have recently bought and sold shares of the business. JPMorgan Chase & Co. boosted its stake in MGIC Investment by 4.8% during the first quarter. JPMorgan Chase & Co. now owns 16,162,180 shares of the insurance provider's stock worth $400,499,000 after buying an additional 743,212 shares during the period. First Trust Advisors LP boosted its stake in MGIC Investment by 22.4% during the fourth quarter. First Trust Advisors LP now owns 16,008,489 shares of the insurance provider's stock worth $379,561,000 after buying an additional 2,928,595 shares during the period. LSV Asset Management boosted its stake in MGIC Investment by 2.9% during the first quarter. LSV Asset Management now owns 10,888,437 shares of the insurance provider's stock worth $269,815,000 after buying an additional 310,095 shares during the period. Allianz Asset Management GmbH boosted its stake in MGIC Investment by 40.6% during the second quarter. Allianz Asset Management GmbH now owns 5,398,356 shares of the insurance provider's stock worth $150,290,000 after buying an additional 1,557,970 shares during the period. Finally, Invesco Ltd. boosted its stake in MGIC Investment by 16.6% during the fourth quarter. Invesco Ltd. now owns 4,766,195 shares of the insurance provider's stock worth $113,006,000 after buying an additional 677,227 shares during the period. Institutional investors own 95.58% of the company's stock.

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.