MGIC Investment Corporation (NYSE:MTG) Receives $26.67 Average PT from Brokerages

Key Points

• Brokerages have assigned MGIC Investment Corporation an average recommendation of "Reduce", with one sell rating and five hold ratings among six covering firms.
• The company recently increased its quarterly dividend to $0.15 per share, up from $0.13, representing an annualized yield of 2.2%.
• Insider trading activity includes several executives selling shares, with CEO Timothy J. Mattke selling 139,203 shares valued at approximately $3.69 million.

MGIC Investment Corporation (NYSE:MTG - Get Free Report) has been assigned an average recommendation of "Reduce" from the six analysts that are currently covering the firm, Marketbeat reports. One research analyst has rated the stock with a sell recommendation and five have given a hold recommendation to the company. The average 12 month target price among brokerages that have issued ratings on the stock in the last year is $26.6667.

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

Insider Activity

In related news, CEO Timothy J. Mattke sold 139,203 shares of the firm's stock in a transaction that occurred on Thursday, August 7th. The shares were sold at an average price of $26.54, for a total value of $3,694,447.62. Following the sale, the chief executive officer owned 1,100,994 shares in the company, valued at approximately $29,220,380.76. This trade represents a 11.22% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, EVP Paula C. Maggio sold 20,000 shares of the firm's stock in a transaction that occurred on 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 $4,169,393.55. This represents a 11.27% decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 189,203 shares of company stock worth $5,010,848 over the last 90 days. 1.05% of the stock is currently owned by insiders.

Institutional Investors Weigh In On MGIC Investment

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. EP Wealth Advisors LLC raised its position in MGIC Investment by 0.9% in the first quarter. EP Wealth Advisors LLC now owns 45,481 shares of the insurance provider's stock worth $1,127,000 after acquiring an additional 398 shares during the period. Brooklyn Investment Group raised its position in MGIC Investment by 15.5% in the first quarter. Brooklyn Investment Group now owns 3,094 shares of the insurance provider's stock worth $77,000 after acquiring an additional 416 shares during the period. Signaturefd LLC raised its position in MGIC Investment by 1.9% in the first quarter. Signaturefd LLC now owns 22,112 shares of the insurance provider's stock worth $548,000 after acquiring an additional 421 shares during the period. PNC Financial Services Group Inc. raised its position in MGIC Investment by 4.2% in the first quarter. PNC Financial Services Group Inc. now owns 10,894 shares of the insurance provider's stock worth $270,000 after acquiring an additional 437 shares during the period. Finally, NDVR Inc. raised its position in MGIC Investment by 3.6% in the second quarter. NDVR Inc. now owns 12,708 shares of the insurance provider's stock worth $354,000 after acquiring an additional 445 shares during the period. Hedge funds and other institutional investors own 95.58% of the company's stock.

MGIC Investment Stock Up 0.6%

Shares of NYSE MTG traded up $0.16 on Friday, reaching $28.01. 1,385,514 shares of the company's stock traded hands, compared to its average volume of 1,989,273. MGIC Investment has a 12 month low of $21.94 and a 12 month high of $28.67. The business's 50 day simple moving average is $26.86 and its two-hundred day simple moving average is $25.55. The company has a market cap of $6.46 billion, a price-to-earnings ratio of 9.18, a price-to-earnings-growth ratio of 2.01 and a beta of 0.90. The company has a quick ratio of 1.46, a current ratio of 1.46 and a debt-to-equity ratio of 0.13.

MGIC Investment (NYSE:MTG - Get Free Report) last announced its earnings results on Wednesday, July 30th. The insurance provider reported $0.82 earnings per share for the quarter, beating 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 business had revenue of $304.25 million during the quarter, compared to the consensus estimate of $306.25 million. During the same quarter last year, the firm earned $0.77 earnings per share. The business's revenue for the quarter was down .3% on a year-over-year basis. As a group, equities research analysts forecast that MGIC Investment will post 2.71 EPS for the current fiscal year.

MGIC Investment Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Thursday, August 21st. Stockholders of record on Thursday, August 7th were issued a dividend of $0.15 per share. The ex-dividend date was Thursday, August 7th. This is a positive change from MGIC Investment's previous quarterly dividend of $0.13. This represents a $0.60 dividend on an annualized basis and a dividend yield of 2.1%. MGIC Investment's dividend payout ratio is currently 19.67%.

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.