MGIC Investment (NYSE:MTG) Hits New 12-Month High - What's Next?

MGIC Investment Corporation (NYSE:MTG - Get Free Report) shares hit a new 52-week high on Tuesday . The company traded as high as $28.35 and last traded at $28.24, with a volume of 704264 shares. The stock had previously closed at $27.84.

Analyst Ratings Changes

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

MGIC Investment Stock Up 2.2%

The company has a quick ratio of 1.25, a current ratio of 1.25 and a debt-to-equity ratio of 0.13. The firm has a market capitalization of $6.77 billion, a PE ratio of 9.48, a price-to-earnings-growth ratio of 2.58 and a beta of 0.89. The business's 50-day moving average price is $26.44 and its 200-day moving average price is $24.90.

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

MGIC Investment Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Wednesday, May 21st. Stockholders of record on Thursday, May 8th were paid a $0.13 dividend. This represents a $0.52 dividend on an annualized basis and a dividend yield of 1.82%. The ex-dividend date was Thursday, May 8th. MGIC Investment's dividend payout ratio (DPR) is presently 17.28%.

MGIC Investment announced that its Board of Directors has initiated a stock buyback program on Thursday, April 24th that permits the company to buyback $750.00 million in shares. This buyback authorization permits the insurance provider to purchase up to 12.5% of its stock through open market purchases. Stock buyback programs are usually an indication that the company's management believes its shares are undervalued.

Insider Transactions at MGIC Investment

In other MGIC Investment news, EVP Paula C. Maggio sold 20,000 shares of the business's stock in a transaction dated Friday, May 30th. The stock was sold at an average price of $26.49, for a total value of $529,800.00. Following the transaction, the executive vice president owned 157,395 shares in the company, valued at $4,169,393.55. The trade was a 11.27% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Insiders own 1.05% of the company's stock.

Institutional Investors Weigh In On MGIC Investment

A number of hedge funds and other institutional investors have recently made changes to their positions in the company. Wells Fargo & Company MN increased its holdings in MGIC Investment by 14.8% in the fourth quarter. Wells Fargo & Company MN now owns 90,987 shares of the insurance provider's stock worth $2,157,000 after buying an additional 11,721 shares during the last quarter. Captrust Financial Advisors bought a new stake in MGIC Investment in the fourth quarter worth approximately $230,000. Nomura Holdings Inc. bought a new stake in MGIC Investment in the fourth quarter worth approximately $797,000. Merit Financial Group LLC acquired a new position in shares of MGIC Investment during the 1st quarter worth $232,000. Finally, LSV Asset Management raised its holdings in shares of MGIC Investment by 2.3% during the 4th quarter. LSV Asset Management now owns 10,578,342 shares of the insurance provider's stock valued at $250,812,000 after purchasing an additional 235,916 shares in 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.