MGIC Investment Corporation (NYSE:MTG) Given Consensus Rating of "Hold" by Brokerages

Key Points

• MGIC Investment Corporation has received a consensus rating of "Hold" from seven analysts, with price targets ranging from $26.00 to $28.00.
• The company recently increased its quarterly dividend from $0.13 to $0.15, representing an annualized yield of 2.2%.
• MGIC reported a net margin of 62.58% and earnings of $0.82 per share, exceeding analyst expectations of $0.70 per share in its latest quarterly earnings announcement.

MGIC Investment Corporation (NYSE:MTG - Get Free Report) has been assigned an average recommendation of "Hold" from the seven analysts that are currently covering the stock, Marketbeat.com reports. Two analysts have rated the stock with a sell recommendation, four have given a hold recommendation and one has given a strong buy recommendation to the company. The average 12 month target price among analysts that have covered the stock in the last year is $26.8333.

Several research analysts have recently issued reports on the stock. Keefe, Bruyette & Woods raised their target price on shares of MGIC Investment from $26.00 to $27.00 and gave the company a "market perform" rating in a research note on Monday, July 7th. Barclays raised their target price on shares of MGIC Investment from $27.00 to $28.00 and gave the company a "cautious" rating in a research note on Monday. Finally, Weiss Ratings reaffirmed a "buy (a-)" rating on shares of MGIC Investment in a research note on Wednesday.

MGIC Investment Stock Down 0.6%

Shares of NYSE:MTG opened at $26.71 on Friday. MGIC Investment has a 12 month low of $21.94 and a 12 month high of $29.01. The company's 50-day moving average price is $27.80 and its two-hundred day moving average price is $26.45. The company has a quick ratio of 1.46, a current ratio of 1.46 and a debt-to-equity ratio of 0.13. The firm has a market cap of $6.16 billion, a P/E ratio of 8.76, a P/E/G ratio of 1.94 and a beta of 0.88.

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 analysts' consensus estimates of $0.70 by $0.12. MGIC Investment had a net margin of 62.58% and a return on equity of 14.73%. The firm had revenue of $304.25 million for the quarter, compared to analyst estimates of $306.25 million. During the same quarter in the prior year, the firm earned $0.77 EPS. The company's revenue was down .3% on a year-over-year basis. As a group, research analysts forecast that MGIC Investment will post 2.71 EPS for the current fiscal year.

MGIC Investment Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Thursday, August 21st. Stockholders of record on Thursday, August 7th were paid a $0.15 dividend. This is a boost from MGIC Investment's previous quarterly dividend of $0.13. The ex-dividend date of this dividend was Thursday, August 7th. This represents a $0.60 annualized dividend and a dividend yield of 2.2%. MGIC Investment's payout ratio is 19.67%.

Insider Activity

In related news, COO Salvatore A. Miosi sold 30,000 shares of MGIC Investment stock in a transaction that occurred on Wednesday, October 1st. The shares were sold at an average price of $28.15, for a total transaction of $844,500.00. Following the transaction, the chief operating officer owned 189,401 shares of the company's stock, valued at $5,331,638.15. This trade represents a 13.67% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. Also, CEO Timothy J. Mattke sold 139,203 shares of MGIC Investment stock in a transaction that occurred on Thursday, August 7th. The stock was sold at an average price of $26.54, for a total transaction of $3,694,447.62. Following the transaction, the chief executive officer directly owned 1,100,994 shares in the company, valued at $29,220,380.76. The trade was a 11.22% decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 338,406 shares of company stock worth $9,096,557 in the last ninety days. Insiders own 1.05% of the company's stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently bought and sold shares of the company. True Wealth Design LLC boosted its stake in MGIC Investment by 262.5% during the 2nd quarter. True Wealth Design LLC now owns 1,004 shares of the insurance provider's stock worth $28,000 after acquiring an additional 727 shares during the last quarter. WPG Advisers LLC bought a new position in MGIC Investment during the 1st quarter worth approximately $26,000. Hantz Financial Services Inc. boosted its stake 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 worth $30,000 after acquiring an additional 1,043 shares during the last quarter. Employees Retirement System of Texas bought a new position in MGIC Investment during the 2nd quarter worth approximately $32,000. Finally, Mitsubishi UFJ Asset Management Co. Ltd. boosted its stake in MGIC Investment by 118.0% during the 2nd quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 1,308 shares of the insurance provider's stock worth $36,000 after acquiring an additional 708 shares during the last quarter. Institutional investors own 95.58% of the company's stock.

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.

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