MGIC Investment (NYSE:MTG) Announces Quarterly Earnings Results, Beats Expectations By $0.11 EPS

Key Points

• MGIC Investment beat earnings expectations: The mortgage insurer reported quarterly EPS of $0.87, exceeding the $0.76 consensus estimate by $0.11. Revenue was $295.39 million, slightly below analysts’ $297.54 million forecast.
• Shareholder returns are increasing: The company raised its quarterly dividend from $0.15 to $0.17, equivalent to $0.68 annually and a 2.2% yield, and authorized a $750 million share-buyback program covering up to 12.4% of outstanding shares.
• Analyst sentiment remains cautious: The stock has an average “Hold” rating from analysts, with an average price target of $28.25, below its reported trading price of $30.59.

MGIC Investment (NYSE:MTG - Get Free Report) announced its quarterly earnings results on Wednesday. The insurance provider reported $0.87 EPS for the quarter, beating the consensus estimate of $0.76 by $0.11, FiscalAI reports. MGIC Investment had a return on equity of 14.01% and a net margin of 59.63%.The business had revenue of $295.39 million for the quarter, compared to analyst estimates of $297.54 million.

MGIC Investment Trading Up 0.0%

NYSE:MTG traded up $0.01 on Wednesday, hitting $30.59. 2,148,658 shares of the stock were exchanged, compared to its average volume of 2,064,421. The stock has a market capitalization of $6.47 billion, a price-to-earnings ratio of 9.71, a P/E/G ratio of 2.07 and a beta of 0.67. MGIC Investment has a 52 week low of $24.69 and a 52 week high of $31.03. 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 company's 50-day moving average price is $27.17 and its 200 day moving average price is $26.92.

MGIC Investment Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, August 20th. Shareholders of record on Wednesday, August 5th will be given a $0.17 dividend. This represents a $0.68 dividend on an annualized basis and a yield of 2.2%. The ex-dividend date is Wednesday, August 5th. This is a positive change from MGIC Investment's previous quarterly dividend of $0.15. MGIC Investment's dividend payout ratio is 21.59%.

MGIC Investment announced that its Board of Directors has approved a share buyback program on Thursday, April 23rd that permits the company to repurchase $750.00 million in shares. This repurchase authorization permits the insurance provider to repurchase up to 12.4% of its stock through open market purchases. Stock repurchase programs are usually an indication that the company's leadership believes its shares are undervalued.

Insider Activity at MGIC Investment

In related news, COO Salvatore A. Miosi sold 30,000 shares of the business's stock in a transaction that occurred on Monday, June 8th. The shares were sold at an average price of $25.38, for a total transaction of $761,400.00. Following the completion of the sale, the chief operating officer directly owned 560,951 shares of the company's stock, valued at $14,236,936.38. The trade was a 5.08% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Paula C. Maggio sold 20,937 shares of the stock in a transaction that occurred on Friday, May 29th. The shares were sold at an average price of $25.55, for a total transaction of $534,940.35. Following the completion of the transaction, the executive vice president owned 169,620 shares in the company, valued at $4,333,791. This represents a 10.99% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 1.34% of the stock is owned by insiders.

Institutional Investors Weigh In On MGIC Investment

A number of institutional investors have recently made changes to their positions in MTG. Lido Advisors LLC lifted its stake in MGIC Investment by 2.2% in 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 period. Victory Financial Group LLC boosted its holdings in MGIC Investment by 1.9% during the third quarter. Victory Financial Group LLC now owns 27,994 shares of the insurance provider's stock worth $794,000 after buying an additional 535 shares during the last quarter. Johnson Financial Group Inc. grew its position in shares of MGIC Investment by 4.0% during the 4th quarter. Johnson Financial Group Inc. now owns 14,180 shares of the insurance provider's stock worth $414,000 after buying an additional 540 shares during the period. Polymer Capital Management US LLC grew its position in shares of MGIC Investment by 4.8% during the 4th quarter. Polymer Capital Management US LLC now owns 13,426 shares of the insurance provider's stock worth $392,000 after buying an additional 612 shares during the period. Finally, Geneos Wealth Management Inc. increased its stake in shares of MGIC Investment by 88.0% in the 1st quarter. Geneos Wealth Management Inc. now owns 1,745 shares of the insurance provider's stock valued at $43,000 after acquiring an additional 817 shares during the last quarter. 95.58% of the stock is owned by institutional investors and hedge funds.

Analysts Set New Price Targets

A number of brokerages have issued reports on MTG. Barclays cut their price objective on MGIC Investment from $29.00 to $28.00 and set an "equal weight" rating for the company in a report on Friday, May 1st. Royal Bank Of Canada assumed coverage on shares of MGIC Investment in a research report on Friday, May 22nd. They set a "sector perform" rating and a $28.00 target price for the company. Weiss Ratings raised shares of MGIC Investment from a "buy (b)" rating to a "buy (b+)" rating in a report on Tuesday, July 7th. Finally, Keefe, Bruyette & Woods boosted their price target on shares of MGIC Investment from $28.00 to $29.00 and gave the company a "market perform" rating in a research report on Friday, April 10th. One research analyst has rated the stock with a Buy rating and four have assigned a Hold rating to the company's stock. According to MarketBeat, the stock currently has an average rating of "Hold" and an average target price of $28.25.

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.