MGIC Investment (NYSE:MTG) Hits New 12-Month High - Here's Why

MGIC Investment Corporation (NYSE:MTG - Get Free Report) hit a new 52-week high during mid-day trading on Monday . The company traded as high as $27.74 and last traded at $27.73, with a volume of 1673055 shares traded. The stock had previously closed at $27.02.

Analyst Ratings Changes

MTG has been the topic of a number of analyst reports. Compass Point restated a "neutral" rating and set a $28.00 target price (up previously from $27.00) on shares of MGIC Investment in a research report on Friday, May 23rd. Keefe, Bruyette & Woods cut their target price on shares of MGIC Investment from $28.00 to $26.00 and set a "market perform" rating on the stock in a research note on Tuesday, April 8th. One research analyst has rated the stock with a sell rating, five have issued a hold rating and two have given a buy rating to the stock. Based on data from MarketBeat.com, the stock currently has an average rating of "Hold" and an average price target of $26.63.

MGIC Investment Price Performance

The stock has a market cap of $6.58 billion, a PE ratio of 9.21, a P/E/G ratio of 2.48 and a beta of 0.89. The company has a current ratio of 1.25, a quick ratio of 1.25 and a debt-to-equity ratio of 0.13. The company's 50 day moving average is $25.83 and its 200-day moving average is $24.73.

MGIC Investment (NYSE:MTG - Get Free Report) last announced its quarterly earnings data on Wednesday, April 30th. The insurance provider reported $0.75 earnings per share for the quarter, topping the consensus estimate of $0.66 by $0.09. The company had revenue of $306.23 million during the quarter, compared to analyst estimates of $306.66 million. MGIC Investment had a net margin of 63.49% and a return on equity of 14.96%. The firm's revenue for the quarter was up 4.0% compared to the same quarter last year. During the same period last year, the business earned $0.65 EPS. As a group, sell-side analysts predict that MGIC Investment Corporation will post 2.71 earnings per share for the current year.

MGIC Investment Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Wednesday, May 21st. Stockholders of record on Thursday, May 8th were issued a $0.13 dividend. This represents a $0.52 annualized dividend and a dividend yield of 1.88%. The ex-dividend date of this dividend was Thursday, May 8th. MGIC Investment's dividend payout ratio (DPR) is presently 17.28%.

MGIC Investment declared that its board has approved a stock buyback plan on Thursday, April 24th that allows the company to repurchase $750.00 million in shares. This repurchase authorization allows the insurance provider to repurchase up to 12.5% of its shares through open market purchases. Shares repurchase plans are generally a sign that the company's board believes its stock is undervalued.

Insider Activity

In related news, EVP Paula C. Maggio sold 20,000 shares of MGIC Investment stock in a transaction dated Friday, May 30th. The shares were sold at an average price of $26.49, for a total value of $529,800.00. Following the sale, the executive vice president now directly owns 157,395 shares in the company, valued at $4,169,393.55. This trade represents a 11.27% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Company insiders own 1.41% of the company's stock.

Institutional Trading of MGIC Investment

Hedge funds and other institutional investors have recently made changes to their positions in the stock. WPG Advisers LLC bought a new stake in shares of MGIC Investment in the 1st quarter worth approximately $26,000. Cullen Frost Bankers Inc. bought a new stake in shares of MGIC Investment in the 1st quarter worth approximately $33,000. Quarry LP bought a new stake in shares of MGIC Investment in the 1st quarter worth approximately $38,000. Venturi Wealth Management LLC raised its holdings in shares of MGIC Investment by 102.1% in the 4th quarter. Venturi Wealth Management LLC now owns 1,817 shares of the insurance provider's stock worth $43,000 after purchasing an additional 918 shares in the last quarter. Finally, Geneos Wealth Management Inc. raised its holdings 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 worth $43,000 after purchasing an additional 817 shares in the last quarter. 95.58% of the stock is currently owned by 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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