MGIC Investment Corporation (NYSE:MTG) Receives $26.67 Consensus Price Target from Brokerages

Key Points

• MGIC Investment Corporation has received a consensus rating of "Reduce" from analysts, with one sell recommendation and five holds, along with an average price target of $26.67.
• The company recently reported earnings of $0.82 per share, exceeding estimates, but experienced a slight 0.3% decline in revenue compared to the previous year.
• MGIC Investment has increased its quarterly dividend from $0.13 to $0.15, yielding 2.1%, reflecting a payout ratio of 19.67%.

MGIC Investment Corporation (NYSE:MTG - Get Free Report) has earned an average recommendation of "Reduce" from the six analysts that are presently covering the company, Marketbeat reports. One investment analyst has rated the stock with a sell recommendation and five have issued a hold recommendation on the company. The average 12 month price target among analysts that have updated their coverage on the stock in the last year is $26.6667.

MTG has been the subject of a number of research reports. Keefe, Bruyette & Woods increased their price objective on MGIC Investment from $26.00 to $27.00 and gave the stock a "market perform" rating in a 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 report on Tuesday, July 8th. Finally, Compass Point reiterated a "neutral" rating and set a $28.00 price objective (up from $27.00) on shares of MGIC Investment in a report on Friday, May 23rd.

Insider Buying and Selling

In other MGIC Investment news, CEO Timothy J. Mattke sold 139,203 shares of the firm's stock in a transaction that occurred on Thursday, August 7th. The stock was sold at an average price of $26.54, for a total value of $3,694,447.62. Following the completion of the transaction, the chief executive officer directly owned 1,100,994 shares in the company, valued at $29,220,380.76. This trade represents a 11.22% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, COO Salvatore A. Miosi sold 30,000 shares of the firm's stock in a transaction that occurred on Friday, August 1st. The shares were sold at an average price of $26.22, for a total value of $786,600.00. Following the completion of the transaction, the chief operating officer owned 249,401 shares of the company's stock, valued at approximately $6,539,294.22. This represents a 10.74% decrease in their ownership of the stock. The disclosure for this sale can be found here. 1.05% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in MTG. Norges Bank bought a new position in shares of MGIC Investment during the 2nd quarter worth approximately $95,857,000. AQR Capital Management LLC raised its holdings in MGIC Investment by 92.4% in the 2nd quarter. AQR Capital Management LLC now owns 6,333,091 shares of the insurance provider's stock valued at $176,313,000 after acquiring an additional 3,041,446 shares in the last quarter. First Trust Advisors LP raised its holdings in shares of MGIC Investment by 48.1% during the 2nd quarter. First Trust Advisors LP now owns 7,302,263 shares of the insurance provider's stock worth $203,295,000 after buying an additional 2,370,403 shares in the last quarter. JPMorgan Chase & Co. grew its position in MGIC Investment by 13.4% during the 2nd quarter. JPMorgan Chase & Co. now owns 18,331,120 shares of the insurance provider's stock worth $510,338,000 after acquiring an additional 2,168,940 shares during the last quarter. Finally, Millennium Management LLC grew its position in MGIC Investment by 913.6% during the 1st quarter. Millennium Management LLC now owns 2,300,596 shares of the insurance provider's stock worth $57,009,000 after acquiring an additional 2,073,633 shares during the last quarter. 95.58% of the stock is currently owned by institutional investors.

MGIC Investment Stock Down 0.7%

Shares of NYSE MTG traded down $0.19 during mid-day trading on Tuesday, reaching $28.31. 10,318,018 shares of the company's stock were exchanged, compared to its average volume of 1,585,135. The firm has a market capitalization of $6.53 billion, a price-to-earnings ratio of 9.28, a PEG ratio of 2.06 and a beta of 0.89. The company has a current ratio of 1.46, a quick ratio of 1.46 and a debt-to-equity ratio of 0.13. The business has a fifty day simple moving average of $27.12 and a 200 day simple moving average of $26.00. MGIC Investment has a twelve month low of $21.94 and a twelve month high of $29.01.

MGIC Investment (NYSE:MTG - Get Free Report) last released its quarterly earnings results on Wednesday, July 30th. The insurance provider reported $0.82 EPS for the quarter, topping analysts' consensus estimates of $0.70 by $0.12. The company had revenue of $304.25 million for the quarter, compared to analyst estimates of $306.25 million. MGIC Investment had a return on equity of 14.73% and a net margin of 62.58%.MGIC Investment's revenue was down .3% compared to the same quarter last year. During the same quarter last year, the firm posted $0.77 earnings per share. As a group, equities analysts expect that MGIC Investment will post 2.71 EPS for the current fiscal year.

MGIC Investment Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Thursday, August 21st. Shareholders of record on Thursday, August 7th were paid a $0.15 dividend. 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 yield of 2.1%. The ex-dividend date was Thursday, August 7th. MGIC Investment's dividend payout ratio is 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.