MGIC Investment (NYSE:MTG) Releases Quarterly Earnings Results, Beats Expectations By $0.03 EPS

Key Points

• MGIC reported Q1 EPS of $0.76, beating estimates by $0.03 while revenue of $297.1M missed the $303.1M forecast; shares traded up ~0.5% to $29.14 and the firm posted a ROE of 14.33% with a net margin of 60.84%.
• The board authorized a stock repurchase program of up to $750 million (about 12.4% of shares) and declared a quarterly dividend of $0.15 per share (annualized $0.60, ~2.1% yield), payable May 21 with an ex-dividend date of May 6.
• Insiders sold roughly 200,133 shares over the past 90 days (including EVP and CEO transactions), and analysts' consensus is "Hold" with an average target price of $28.50.

MGIC Investment (NYSE:MTG - Get Free Report) released its quarterly earnings results on Wednesday. The insurance provider reported $0.76 EPS for the quarter, topping the consensus estimate of $0.73 by $0.03, FiscalAI reports. MGIC Investment had a return on equity of 14.33% and a net margin of 60.84%.The business had revenue of $297.08 million during the quarter, compared to analysts' expectations of $303.07 million.

MGIC Investment Trading Up 0.5%

Shares of MGIC Investment stock traded up $0.16 during trading hours on Wednesday, hitting $29.14. The company's stock had a trading volume of 2,378,143 shares, compared to its average volume of 2,128,610. MGIC Investment has a 1-year low of $24.30 and a 1-year high of $29.97. The business has a fifty day moving average of $26.85 and a 200 day moving average of $27.49. The company has a market capitalization of $6.26 billion, a PE ratio of 9.28, a P/E/G ratio of 2.31 and a beta of 0.79. The company has a quick ratio of 1.52, a current ratio of 1.52 and a debt-to-equity ratio of 0.13.

MGIC Investment Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, May 21st. Shareholders of record on Wednesday, May 6th will be given a dividend of $0.15 per share. This represents a $0.60 dividend on an annualized basis and a yield of 2.1%. The ex-dividend date of this dividend is Wednesday, May 6th. MGIC Investment's payout ratio is 19.11%.

MGIC Investment announced that its board has initiated a stock repurchase program on Thursday, April 23rd that allows the company to repurchase $750.00 million in shares. This repurchase authorization allows the insurance provider to reacquire up to 12.4% of its shares through open market purchases. Shares repurchase programs are usually a sign that the company's leadership believes its shares are undervalued.

Insider Transactions at MGIC Investment

In related news, EVP Paula C. Maggio sold 20,000 shares of the firm's stock in a transaction dated Friday, February 6th. The stock was sold at an average price of $27.51, for a total transaction of $550,200.00. Following the sale, the executive vice president directly owned 114,689 shares in the company, valued at approximately $3,155,094.39. This trade represents a 14.85% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through this link. Also, CEO Timothy J. Mattke sold 139,202 shares of the firm's stock in a transaction dated Thursday, April 2nd. The shares were sold at an average price of $26.49, for a total value of $3,687,460.98. Following the sale, the chief executive officer owned 1,118,005 shares in the company, valued at approximately $29,615,952.45. The trade was a 11.07% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 200,133 shares of company stock valued at $5,342,700 over the last 90 days. Corporate insiders own 1.34% of the company's stock.

Institutional Investors Weigh In On MGIC Investment

Several hedge funds have recently modified their holdings of the stock. Compound Planning Inc. raised its holdings in shares of MGIC Investment by 27.9% during the 4th quarter. Compound Planning Inc. now owns 9,959 shares of the insurance provider's stock valued at $291,000 after buying an additional 2,171 shares during the period. Axxcess Wealth Management LLC purchased a new stake in shares of MGIC Investment during the 4th quarter valued at about $205,000. Corient Private Wealth LLC raised its holdings in shares of MGIC Investment by 238.9% during the 4th quarter. Corient Private Wealth LLC now owns 611,342 shares of the insurance provider's stock valued at $17,863,000 after buying an additional 430,954 shares during the period. Mercer Global Advisors Inc. ADV raised its holdings in shares of MGIC Investment by 56.1% during the 4th quarter. Mercer Global Advisors Inc. ADV now owns 130,690 shares of the insurance provider's stock valued at $3,819,000 after buying an additional 46,947 shares during the period. Finally, EP Wealth Advisors LLC purchased a new stake in shares of MGIC Investment during the 4th quarter valued at about $1,533,000. 95.58% of the stock is currently owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

Several equities research analysts have recently commented on the company. UBS Group cut their price target on MGIC Investment from $29.50 to $28.00 and set a "neutral" rating for the company in a research note on Thursday, March 12th. Weiss Ratings cut MGIC Investment from a "buy (a-)" rating to a "buy (b+)" rating in a research report on Thursday, February 5th. Barclays increased their price objective on MGIC Investment from $28.00 to $29.00 and gave the stock an "equal weight" rating in a research report on Monday, April 6th. Finally, Keefe, Bruyette & Woods increased their price objective on MGIC Investment from $28.00 to $29.00 and gave the stock a "market perform" rating in a research report on Friday, April 10th. One research analyst has rated the stock with a Buy rating and four have given a Hold rating to the company's stock. Based on data from MarketBeat, the stock presently has an average rating of "Hold" and an average target price of $28.50.

MGIC Investment Company Profile

MGIC Investment Corporation NYSE: MTG is a leading provider of private mortgage insurance in the United States. Established in 1957 as the nation's first private mortgage insurer, MGIC helps lenders manage credit risk and facilitates homeownership by protecting mortgage loans against default. Headquartered in Milwaukee, Wisconsin, the company operates through its principal subsidiary, Mortgage Guaranty Insurance Corporation, and maintains relationships with a broad network of originators and servicers nationwide.

The company's primary business activity involves issuing mortgage insurance policies that enable borrowers to purchase homes with down payments below traditional lending thresholds.

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