MGIC Investment (NYSE:MTG) Hits New 1-Year High - Here's Why

Key Points

• MGIC Investment Corporation (NYSE:MTG) shares reached a new **52-week high** of **$28.94**, reflecting a strong trading volume and interest from investors.
• The company reported a quarterly **earnings per share (EPS)** of **$0.82**, surpassing analyst expectations and demonstrating a **return on equity of 14.73%** despite a slight decline in revenue year-over-year.
• MGIC recently announced an **increase in its quarterly dividend** to **$0.15 per share**, which represents a **2.1% yield** and highlights its commitment to returning value to shareholders.

MGIC Investment Corporation (NYSE:MTG - Get Free Report) shares hit a new 52-week high during trading on Thursday . The stock traded as high as $28.94 and last traded at $28.81, with a volume of 176747 shares traded. The stock had previously closed at $28.37.

Wall Street Analyst Weigh In

Several equities research analysts have recently commented on MTG shares. Barclays increased their price objective on MGIC Investment from $26.00 to $27.00 and gave the company an "equal weight" rating in a report on Tuesday, July 8th. Keefe, Bruyette & Woods raised their target price 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. Finally, Compass Point reissued a "neutral" rating and issued a $28.00 target price (up from $27.00) on shares of MGIC Investment in a report on Friday, May 23rd. Five equities research analysts have rated the stock with a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, MGIC Investment presently has an average rating of "Reduce" and an average target price of $26.67.

MGIC Investment Stock Performance

The stock has a market capitalization of $6.66 billion, a PE ratio of 9.46, a PEG ratio of 2.04 and a beta of 0.89. The company has a debt-to-equity ratio of 0.13, a current ratio of 1.46 and a quick ratio of 1.46. The business has a 50 day moving average price of $26.95 and a 200 day moving average price of $25.80.

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

MGIC Investment Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Thursday, August 21st. Investors of record on Thursday, August 7th were paid a dividend of $0.15 per share. This is a positive change from MGIC Investment's previous quarterly dividend of $0.13. The ex-dividend date was Thursday, August 7th. This represents a $0.60 annualized dividend and a yield of 2.1%. MGIC Investment's dividend payout ratio (DPR) is presently 19.67%.

Insider Activity

In other news, COO Salvatore A. Miosi sold 30,000 shares of the company's stock in a transaction dated Friday, August 1st. The stock was sold at an average price of $26.22, for a total value of $786,600.00. Following the sale, the chief operating officer owned 249,401 shares in the company, valued at $6,539,294.22. This represents a 10.74% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CEO Timothy J. Mattke sold 139,203 shares of the 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 transaction, the chief executive officer owned 1,100,994 shares in the company, valued at $29,220,380.76. This represents a 11.22% decrease in their position. The disclosure for this sale can be found here. 1.05% of the stock is currently owned by insiders.

Hedge Funds Weigh In On MGIC Investment

A number of large investors have recently modified their holdings of the business. EP Wealth Advisors LLC boosted its position in shares of MGIC Investment by 0.9% during the first quarter. EP Wealth Advisors LLC now owns 45,481 shares of the insurance provider's stock worth $1,127,000 after buying an additional 398 shares during the period. Brooklyn Investment Group raised its stake in MGIC Investment by 15.5% during the 1st quarter. Brooklyn Investment Group now owns 3,094 shares of the insurance provider's stock valued at $77,000 after purchasing an additional 416 shares during the period. Signaturefd LLC raised its stake in MGIC Investment by 1.9% during the 1st quarter. Signaturefd LLC now owns 22,112 shares of the insurance provider's stock valued at $548,000 after purchasing an additional 421 shares during the period. PNC Financial Services Group Inc. increased its stake in shares of 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 last quarter. Finally, NDVR Inc. increased its stake in shares of 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 last quarter. 95.58% of the stock is owned by hedge funds and other institutional investors.

MGIC Investment Company Profile

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.

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