MGIC Investment (NYSE:MTG) Announces Share Buyback Program

Key Points

• $750 million share buyback approved by the board on April 23, authorizing repurchases of up to 12.4% of outstanding shares via open-market purchases, a signal the board may view the stock as undervalued.
• MGIC trades near $28.79 with a market cap of $6.19B and a PE of 9.17; the company beat quarterly EPS estimates ($0.75 vs. $0.73), pays a $0.15 quarterly dividend (≈2.1% yield), and carries a consensus analyst rating of "Hold" with an average target of $28.50.

MGIC Investment (NYSE:MTG - Get Free Report) announced that its board has approved a share buyback program on Thursday, April 23rd, RTT News reports. The company plans to buyback $750.00 million in outstanding shares. This buyback authorization permits the insurance provider to reacquire up to 12.4% of its stock through open market purchases. Stock buyback programs are usually a sign that the company's board believes its shares are undervalued.

MGIC Investment Stock Performance

MTG stock traded up $0.62 during trading on Thursday, hitting $28.79. The company had a trading volume of 1,640,522 shares, compared to its average volume of 1,574,148. The firm has a market cap of $6.19 billion, a PE ratio of 9.17, a price-to-earnings-growth ratio of 2.24 and a beta of 0.79. MGIC Investment has a 1-year low of $24.00 and a 1-year high of $29.97. The firm has a 50-day moving average price of $26.68 and a 200-day moving average price of $27.43. The company has a quick ratio of 1.52, a current ratio of 1.52 and a debt-to-equity ratio of 0.13.

MGIC Investment (NYSE:MTG - Get Free Report) last issued its quarterly earnings results on Monday, February 2nd. The insurance provider reported $0.75 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.73 by $0.02. MGIC Investment had a return on equity of 14.33% and a net margin of 60.84%.MGIC Investment's revenue was down .9% on a year-over-year basis. During the same period in the previous year, the firm posted $0.72 EPS. On average, analysts expect that MGIC Investment will post 3.08 earnings per share for the current year.

MGIC Investment Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Friday, March 6th. Investors of record on Tuesday, February 17th were given a $0.15 dividend. This represents a $0.60 annualized dividend and a yield of 2.1%. The ex-dividend date was Tuesday, February 17th. MGIC Investment's payout ratio is 19.11%.

Analyst Upgrades and Downgrades

A number of analysts have recently commented on the company. Keefe, Bruyette & Woods lifted their target price on MGIC Investment from $28.00 to $29.00 and gave the stock a "market perform" rating in a research report on Friday, April 10th. Barclays lifted their target price on MGIC Investment from $28.00 to $29.00 and gave the stock an "equal weight" rating in a research report on Monday, April 6th. Weiss Ratings cut MGIC Investment from a "buy (a-)" rating to a "buy (b+)" rating in a research report on Thursday, February 5th. Finally, UBS Group cut their target price on MGIC Investment from $29.50 to $28.00 and set a "neutral" rating on the stock in a research report on Thursday, March 12th. One research analyst has rated the stock with a Buy rating and four have issued a Hold rating to the company's stock. According to data from MarketBeat, MGIC Investment currently has a consensus rating of "Hold" and an average price target of $28.50.

Insider Activity at MGIC Investment

In related news, CEO Timothy J. Mattke sold 139,202 shares of the business's stock in a transaction dated Thursday, April 2nd. The stock was sold at an average price of $26.49, for a total value of $3,687,460.98. Following the transaction, the chief executive officer owned 1,118,005 shares in the company, valued at $29,615,952.45. The trade was a 11.07% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Paula C. Maggio sold 20,000 shares of the business's stock in a transaction dated Friday, February 6th. The shares were sold at an average price of $27.51, for a total value of $550,200.00. Following the completion of the transaction, the executive vice president owned 114,689 shares in the company, valued at $3,155,094.39. This trade represents a 14.85% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 200,133 shares of company stock worth $5,342,700 in the last quarter. Company insiders own 1.34% of the company's stock.

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.

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