MGIC Investment (NYSE:MTG) Reaches New 12-Month High - Should You Buy?

MGIC Investment Corporation (NYSE:MTG - Get Free Report)'s share price hit a new 52-week high 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 Upgrades and Downgrades

Several analysts recently issued reports on MTG shares. Compass Point reiterated a "neutral" rating and set a $28.00 price target (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 MGIC Investment from $28.00 to $26.00 and set a "market perform" rating for the company in a research note on Tuesday, April 8th. One equities research analyst has rated the stock with a sell rating, five have assigned a hold rating and two have given a buy rating to the company's stock. According to MarketBeat.com, the stock presently has a consensus rating of "Hold" and a consensus target price of $26.63.

MGIC Investment Trading Up 0.6%

The company has a market capitalization of $6.56 billion, a price-to-earnings ratio of 9.18, a P/E/G ratio of 2.51 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 business's 50 day moving average price is $26.05 and its two-hundred day moving average price is $24.79.

MGIC Investment (NYSE:MTG - Get Free Report) last issued its earnings results on Wednesday, April 30th. The insurance provider reported $0.75 earnings per share for the quarter, beating analysts' consensus estimates of $0.66 by $0.09. The firm had revenue of $306.23 million for 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 company's quarterly revenue was up 4.0% on a year-over-year basis. During the same quarter last year, the business posted $0.65 earnings per share. On average, equities analysts predict that MGIC Investment Corporation will post 2.71 earnings per share for the current fiscal year.

MGIC Investment Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, May 21st. Investors of record on Thursday, May 8th were given a dividend of $0.13 per share. The ex-dividend date was Thursday, May 8th. This represents a $0.52 dividend on an annualized basis and a yield of 1.88%. MGIC Investment's dividend payout ratio is currently 17.28%.

MGIC Investment declared that its Board of Directors has initiated a share repurchase program on Thursday, April 24th that permits the company to repurchase $750.00 million in shares. This repurchase authorization permits the insurance provider to reacquire up to 12.5% of its shares through open market purchases. Shares repurchase programs are generally an indication that the company's leadership believes its shares are undervalued.

Insider Buying and Selling at MGIC Investment

In other MGIC Investment news, EVP Paula C. Maggio sold 20,000 shares of the business's stock in a transaction that occurred on Friday, May 30th. The shares were sold at an average price of $26.49, for a total transaction of $529,800.00. Following the sale, the executive vice president now directly owns 157,395 shares of the company's stock, valued at $4,169,393.55. The trade was a 11.27% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Corporate insiders own 1.05% of the company's stock.

Hedge Funds Weigh In On MGIC Investment

A number of hedge funds have recently modified their holdings of MTG. WPG Advisers LLC acquired a new stake in MGIC Investment in the first quarter valued at $26,000. Cullen Frost Bankers Inc. bought a new stake in shares of MGIC Investment in the 1st quarter valued at about $33,000. Quarry LP acquired a new stake in shares of MGIC Investment in the first quarter valued at about $38,000. Venturi Wealth Management LLC increased its stake in shares of MGIC Investment by 102.1% in the fourth quarter. Venturi Wealth Management LLC now owns 1,817 shares of the insurance provider's stock valued at $43,000 after buying an additional 918 shares during the period. Finally, Geneos Wealth Management Inc. raised its position in shares of MGIC Investment by 88.0% during the first quarter. Geneos Wealth Management Inc. now owns 1,745 shares of the insurance provider's stock worth $43,000 after acquiring an additional 817 shares during the last quarter. Institutional investors and hedge funds own 95.58% of the company's stock.

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.