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

Key Points

• Analyst consensus remains “Hold”: Four of six brokerages rate MGIC Investment neutral and two rate it a buy, with an average 12-month price target of $28.25—below the reported share price of $30.08.
• Second-quarter earnings beat expectations: Adjusted EPS was $0.87 versus the $0.74–$0.76 consensus range, while revenue of $295.4 million declined 2.9% year over year and fell slightly short of estimates.
• Shareholder returns are increasing: MGIC authorized a $750 million share-repurchase program and raised its quarterly dividend from $0.15 to $0.17, equivalent to a 2.3% annualized yield.

Shares of MGIC Investment Corporation (NYSE:MTG - Get Free Report) have received an average rating of "Hold" from the six research firms that are covering the firm, MarketBeat Ratings reports. Four investment analysts have rated the stock with a hold recommendation and two have assigned a buy recommendation to the company. The average 12-month target price among brokerages that have issued ratings on the stock in the last year is $28.25.

A number of brokerages recently weighed in on MTG. Roth Capital reaffirmed a "buy" rating on shares of MGIC Investment in a research report on Thursday. Royal Bank Of Canada assumed coverage on shares of MGIC Investment in a report on Friday, May 22nd. They issued a "sector perform" rating and a $28.00 target price for the company. Barclays decreased their price target on shares of MGIC Investment from $29.00 to $28.00 and set an "equal weight" rating for the company in a research report on Friday, May 1st. Keefe, Bruyette & Woods lifted their price objective on shares of MGIC Investment from $28.00 to $29.00 and gave the stock a "market perform" rating in a research report on Friday, April 10th. Finally, Weiss Ratings upgraded shares of MGIC Investment from a "buy (b)" rating to a "buy (b+)" rating in a research note on Tuesday, July 7th.

Key Headlines Impacting MGIC Investment

Here are the key news stories impacting MGIC Investment this week:

• Positive Sentiment: MGIC reported second-quarter adjusted net operating income of $183.7 million, or $0.87 per diluted share, compared with analyst expectations of approximately $0.74–$0.76 per share. GAAP net income was $182.1 million, or $0.86 per share. MGIC Investment Corporation Reports Second Quarter 2026 Results
• Positive Sentiment: Profitability remained strong, with a 14.5% return on equity and a 59.63% net margin, supporting the company’s message that disciplined execution continues to benefit results. MGIC Investment Q2 Earnings Beat Estimates
• Positive Sentiment: Zacks Research slightly raised its estimate for MTG’s first-quarter 2028 earnings to $0.84 per share from $0.83. Analysts currently expect full-year earnings of $3.05 per share.
• Neutral Sentiment: Revenue totaled $295.4 million, broadly in line with expectations, while earnings improved from $0.82 per share in the year-ago quarter. MGIC Reports Q2 Earnings: Key Metrics
• Negative Sentiment: Revenue missed the roughly $297.5 million consensus estimate and declined 2.9% year over year. The modest top-line contraction may be limiting the stock’s reaction to the earnings beat. MGIC Investment Q2 2026 Earnings Results

Insiders Place Their Bets

In other news, EVP Paula C. Maggio sold 20,937 shares of the stock in a transaction 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 completion of the sale, the executive vice president owned 169,620 shares in the company, valued at approximately $4,333,791. This represents a 10.99% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, COO Salvatore A. Miosi sold 30,000 shares of the stock in a transaction on Monday, June 8th. The shares were sold at an average price of $25.38, for a total value of $761,400.00. Following the sale, the chief operating officer owned 560,951 shares of the company's stock, valued at approximately $14,236,936.38. This represents a 5.08% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Corporate insiders own 1.34% of the company's stock.

Institutional Investors Weigh In On MGIC Investment

A number of large investors have recently modified their holdings of the business. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. acquired a new stake in MGIC Investment in the 1st quarter worth approximately $2,397,000. Goldman Sachs Group Inc. increased its stake in MGIC Investment by 6.7% during the 1st quarter. Goldman Sachs Group Inc. now owns 3,103,366 shares of the insurance provider's stock valued at $76,901,000 after purchasing an additional 195,895 shares in the last quarter. Geneos Wealth Management Inc. raised its holdings 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 worth $43,000 after buying an additional 817 shares during the last quarter. Sivia Capital Partners LLC purchased a new position in shares of MGIC Investment in the second quarter worth $425,000. Finally, Northwestern Mutual Wealth Management Co. lifted its stake in shares of MGIC Investment by 18.9% during the second quarter. Northwestern Mutual Wealth Management Co. now owns 5,211 shares of the insurance provider's stock worth $145,000 after buying an additional 830 shares during the period. Hedge funds and other institutional investors own 95.58% of the company's stock.

MGIC Investment Stock Down 1.6%

MGIC Investment stock traded down $0.50 during mid-day trading on Thursday, reaching $30.08. 725,419 shares of the company were exchanged, compared to its average volume of 2,054,396. The company has a debt-to-equity ratio of 0.13, a quick ratio of 1.14 and a current ratio of 1.14. The firm has a market cap of $6.36 billion, a P/E ratio of 9.54, a PEG ratio of 2.11 and a beta of 0.67. The business has a fifty day moving average of $27.25 and a 200 day moving average of $26.93. MGIC Investment has a 12-month low of $24.69 and a 12-month high of $31.89.

MGIC Investment (NYSE:MTG - Get Free Report) last announced its quarterly earnings results on Wednesday, July 29th. The insurance provider reported $0.87 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.76 by $0.11. The business had revenue of $295.39 million for the quarter, compared to the consensus estimate of $297.54 million. MGIC Investment had a return on equity of 14.01% and a net margin of 59.63%.The business's revenue was down 2.9% compared to the same quarter last year. During the same period last year, the business posted $0.82 EPS. Research analysts anticipate that MGIC Investment will post 3.05 earnings per share for the current fiscal year.

MGIC Investment declared that its board has initiated a stock buyback program on Thursday, April 23rd that permits the company to repurchase $750.00 million in outstanding shares. This repurchase authorization permits the insurance provider to repurchase up to 12.4% of its shares through open market purchases. Shares repurchase programs are usually a sign that the company's management believes its shares are undervalued.

MGIC Investment Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, August 20th. Shareholders of record on Wednesday, August 5th will be paid a $0.17 dividend. This represents a $0.68 annualized dividend and a yield of 2.3%. This is a positive change from MGIC Investment's previous quarterly dividend of $0.15. The ex-dividend date is Wednesday, August 5th. MGIC Investment's payout ratio 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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