MGIC Investment Corporation (NYSE:MTG) Receives Consensus Recommendation of "Moderate Buy" from Analysts

Key Points

• Analysts give MGIC Investment a “Moderate Buy” consensus from six brokerages, with an average 12-month price target of $30.60. Ratings include four holds, one buy and one strong buy.
• MGIC Investment’s shares rose 1.5% to $31.35, near their 52-week high, after the company reported quarterly EPS of $0.87, exceeding estimates of $0.76. Revenue declined 2.9% year over year to $295.39 million.
• The company increased its quarterly dividend to $0.17 per share, equivalent to a $0.68 annualized payout and a 2.2% yield. Institutional investors own 95.58% of the stock, while insiders sold 70,937 shares worth $1.9 million over the past 90 days.

MGIC Investment Corporation (NYSE:MTG - Get Free Report) has received an average recommendation of "Moderate Buy" from the six brokerages that are currently covering the company, Marketbeat reports. Four research analysts have rated the stock with a hold rating, one has assigned a buy rating and one has assigned a strong buy rating to the company. The average 12-month target price among analysts that have updated their coverage on the stock in the last year is $30.60.

A number of research firms recently issued reports on MTG. Keefe, Bruyette & Woods lifted their target price on MGIC Investment from $29.00 to $30.00 and gave the company a "market perform" rating in a research report on Friday, July 31st. Royal Bank Of Canada increased their price target on MGIC Investment from $28.00 to $32.00 and gave the company a "sector perform" rating in a research report on Friday, July 31st. Barclays lowered their price target on MGIC Investment from $29.00 to $28.00 and set an "equal weight" rating on the stock in a research report on Friday, May 1st. Weiss Ratings upgraded MGIC Investment from a "buy (b+)" rating to a "buy (a-)" rating in a research note on Wednesday. Finally, Roth Capital reissued a "buy" rating and issued a $35.00 price objective on shares of MGIC Investment in a report on Thursday, July 30th.

Insider Buying and Selling at MGIC Investment

In other MGIC Investment news, 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 completion of the sale, the chief operating officer owned 560,951 shares in the company, valued at $14,236,936.38. This trade represents a 5.08% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Paula C. Maggio sold 20,000 shares of MGIC Investment stock in a transaction dated Friday, August 7th. The shares were sold at an average price of $30.30, for a total transaction of $606,000.00. Following the completion of the transaction, the executive vice president directly owned 149,620 shares of the company's stock, valued at approximately $4,533,486. This trade represents a 11.79% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 70,937 shares of company stock worth $1,902,340 over the last ninety days. Insiders own 1.34% of the company's stock.

Hedge Funds Weigh In On MGIC Investment

A number of hedge funds and other institutional investors have recently bought and sold shares of MTG. SBI Securities Co. Ltd. increased its stake in MGIC Investment by 40.3% during the 4th quarter. SBI Securities Co. Ltd. now owns 1,461 shares of the insurance provider's stock valued at $43,000 after purchasing an additional 420 shares in the last quarter. Compound Planning Inc. lifted its stake in shares of MGIC Investment by 4.3% in the first quarter. Compound Planning Inc. now owns 10,392 shares of the insurance provider's stock worth $273,000 after buying an additional 433 shares in the last quarter. Oregon Public Employees Retirement Fund grew its holdings in shares of MGIC Investment by 1.1% during the first quarter. Oregon Public Employees Retirement Fund now owns 44,972 shares of the insurance provider's stock valued at $1,181,000 after buying an additional 481 shares during the last quarter. Lido Advisors LLC grew its holdings in shares of MGIC Investment by 2.2% during the fourth quarter. Lido Advisors LLC now owns 23,799 shares of the insurance provider's stock valued at $689,000 after buying an additional 522 shares during the last quarter. Finally, Victory Financial Group LLC increased its position in shares of MGIC Investment by 1.9% during the third quarter. Victory Financial Group LLC now owns 27,994 shares of the insurance provider's stock valued at $794,000 after acquiring an additional 535 shares in the last quarter. Institutional investors own 95.58% of the company's stock.

MGIC Investment Stock Up 1.5%

Shares of MTG stock traded up $0.45 during trading on Monday, reaching $31.35. The company's stock had a trading volume of 30,691 shares, compared to its average volume of 2,004,949. MGIC Investment has a one year low of $24.69 and a one year high of $31.89. The business has a fifty day moving average price of $29.00 and a 200-day moving average price of $27.40. The company has a market cap of $6.43 billion, a price-to-earnings ratio of 9.78, a price-to-earnings-growth ratio of 0.79 and a beta of 0.66. The company has a quick ratio of 1.19, a current ratio of 1.19 and a debt-to-equity ratio of 0.13.

MGIC Investment (NYSE:MTG - Get Free Report) last issued its quarterly earnings results on Wednesday, July 29th. The insurance provider reported $0.87 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.76 by $0.11. MGIC Investment had a net margin of 59.20% and a return on equity of 13.90%. The firm had revenue of $295.39 million for the quarter, compared to analyst estimates of $297.54 million. During the same period in the previous year, the business earned $0.82 EPS. The company's revenue was down 2.9% compared to the same quarter last year. Analysts anticipate that MGIC Investment will post 3.24 earnings per share for the current year.

MGIC Investment Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Thursday, August 20th. Shareholders of record on Wednesday, August 5th were given a dividend of $0.17 per share. This represents a $0.68 annualized dividend and a yield of 2.2%. This is an increase from MGIC Investment's previous quarterly dividend of $0.15. The ex-dividend date of this dividend was Wednesday, August 5th. MGIC Investment's payout ratio is currently 21.25%.

MGIC Investment Company Profile

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source