MGIC Investment (NYSE:MTG) Sets New 52-Week High - Here's What Happened

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)'s share price hit a new 52-week high during mid-day trading on Thursday . The stock traded as high as $28.94 and last traded at $28.81, with a volume of 176747 shares changing hands. The stock had previously closed at $28.37.

Analyst Ratings Changes

Several research analysts have recently issued reports on the stock. Keefe, Bruyette & Woods upped 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. Barclays upped their target price on shares of MGIC Investment from $26.00 to $27.00 and gave the company an "equal weight" rating in a report on Tuesday, July 8th. Finally, Compass Point restated a "neutral" rating and issued a $28.00 target price (up previously from $27.00) on shares of MGIC Investment in a report on Friday, May 23rd. Five investment analysts have rated the stock with a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat.com, MGIC Investment currently has an average rating of "Reduce" and a consensus target price of $26.67.

MGIC Investment Price Performance

The company has a market capitalization of $6.42 billion, a price-to-earnings ratio of 9.14, a PEG ratio of 2.06 and a beta of 0.89. The company's 50 day simple moving average is $26.97 and its 200-day simple moving average is $25.91. The company has a current ratio of 1.46, a quick ratio of 1.46 and a debt-to-equity ratio of 0.13.

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

MGIC Investment Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Thursday, August 21st. Investors of record on Thursday, August 7th were given a $0.15 dividend. This is a boost from MGIC Investment's previous quarterly dividend of $0.13. This represents a $0.60 annualized dividend and a dividend yield of 2.2%. The ex-dividend date of this dividend was Thursday, August 7th. MGIC Investment's dividend payout ratio is 19.67%.

Insider Activity at MGIC Investment

In related news, 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 sale, the chief operating officer directly owned 249,401 shares of the company's stock, valued at approximately $6,539,294.22. This trade represents a 10.74% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, 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 transaction of $3,694,447.62. Following the completion of the sale, the chief executive officer directly owned 1,100,994 shares in the company, valued at $29,220,380.76. This represents a 11.22% decrease in their ownership of the stock. The disclosure for this sale can be found here. 1.41% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On MGIC Investment

Institutional investors have recently bought and sold shares of the business. True Wealth Design LLC increased its position in shares of MGIC Investment by 262.5% in the second quarter. True Wealth Design LLC now owns 1,004 shares of the insurance provider's stock worth $28,000 after acquiring an additional 727 shares in the last quarter. WPG Advisers LLC acquired a new stake in shares of MGIC Investment in the first quarter worth $26,000. Hantz Financial Services Inc. increased its position in shares of MGIC Investment by 3,067.6% in the second quarter. Hantz Financial Services Inc. now owns 1,077 shares of the insurance provider's stock worth $30,000 after acquiring an additional 1,043 shares in the last quarter. Employees Retirement System of Texas acquired a new stake in shares of MGIC Investment in the second quarter worth $32,000. Finally, Mitsubishi UFJ Asset Management Co. Ltd. increased its position in shares of MGIC Investment by 118.0% in the second quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 1,308 shares of the insurance provider's stock worth $36,000 after acquiring an additional 708 shares in the last quarter. 95.58% of the stock is currently owned by hedge funds and other institutional investors.

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.