MGIC Investment (NYSE:MTG) Reaches New 12-Month High - Here's What Happened

Key Points

• MGIC Investment Corporation's shares reached a new 52-week high of $29.01 during trading, closing at $28.60 with substantial volume.
• The company's recent earnings report showed an EPS of $0.82, surpassing estimates, even though revenue dipped 0.3% year-over-year.
• MGIC Investment increased its quarterly dividend from $0.13 to $0.15, representing a yield of 2.1%.

MGIC Investment Corporation (NYSE:MTG - Get Free Report)'s share price reached a new 52-week high on Thursday . The company traded as high as $29.01 and last traded at $28.60, with a volume of 1428449 shares trading hands. The stock had previously closed at $28.00.

Analysts Set New Price Targets

MTG has been the subject of a number of research reports. Keefe, Bruyette & Woods increased their target price on shares of MGIC Investment from $26.00 to $27.00 and gave the company a "market perform" rating in a research report on Monday, July 7th. Barclays increased their price target on shares of MGIC Investment from $26.00 to $27.00 and gave the stock an "equal weight" rating in a report on Tuesday, July 8th. Five analysts have rated the stock with a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, MGIC Investment currently has a consensus rating of "Reduce" and a consensus target price of $26.67.

MGIC Investment Trading Down 0.6%

The company has a debt-to-equity ratio of 0.13, a current ratio of 1.46 and a quick ratio of 1.46. The stock's 50-day moving average is $27.12 and its two-hundred day moving average is $26.03. The stock has a market cap of $6.49 billion, a P/E ratio of 9.23, a price-to-earnings-growth ratio of 2.05 and a beta of 0.89.

MGIC Investment (NYSE:MTG - Get Free Report) last released its quarterly earnings data on Wednesday, July 30th. The insurance provider reported $0.82 EPS for the quarter, beating 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 business had revenue of $304.25 million during the quarter, compared to analyst estimates of $306.25 million. During the same quarter last year, the business earned $0.77 earnings per share. MGIC Investment's quarterly revenue was down .3% compared to the same quarter last year. Equities research analysts anticipate that MGIC Investment Corporation will post 2.71 EPS for the current year.

MGIC Investment Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Thursday, August 21st. Investors of record on Thursday, August 7th were paid a $0.15 dividend. The ex-dividend date of this dividend was Thursday, August 7th. This represents a $0.60 annualized dividend and a yield of 2.1%. This is a boost from MGIC Investment's previous quarterly dividend of $0.13. MGIC Investment's payout ratio is 19.67%.

Insider Buying and Selling

In related news, CEO Timothy J. Mattke sold 139,203 shares of the business's stock in a transaction on Thursday, August 7th. The shares were sold at an average price of $26.54, for a total value of $3,694,447.62. Following the completion of the sale, the chief executive officer owned 1,100,994 shares of the company's stock, valued at approximately $29,220,380.76. The trade was a 11.22% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, COO Salvatore A. Miosi sold 30,000 shares of the company's stock in a transaction on Friday, August 1st. The stock was sold at an average price of $26.22, for a total transaction of $786,600.00. Following the sale, the chief operating officer directly owned 249,401 shares of the company's stock, valued at $6,539,294.22. The trade was a 10.74% decrease in their position. The disclosure for this sale can be found here. 1.41% of the stock is owned by insiders.

Hedge Funds Weigh In On MGIC Investment

Several hedge funds have recently added to or reduced their stakes in MTG. EP Wealth Advisors LLC boosted its holdings in shares of MGIC Investment by 0.9% in the first quarter. EP Wealth Advisors LLC now owns 45,481 shares of the insurance provider's stock valued at $1,127,000 after acquiring an additional 398 shares during the period. Brooklyn Investment Group lifted its holdings in shares of MGIC Investment by 15.5% during the first quarter. Brooklyn Investment Group now owns 3,094 shares of the insurance provider's stock worth $77,000 after purchasing an additional 416 shares during the period. Signaturefd LLC lifted its holdings in shares of MGIC Investment by 1.9% during the first quarter. Signaturefd LLC now owns 22,112 shares of the insurance provider's stock worth $548,000 after purchasing an additional 421 shares during the period. PNC Financial Services Group Inc. lifted its holdings in shares of MGIC Investment by 4.2% during the first quarter. PNC Financial Services Group Inc. now owns 10,894 shares of the insurance provider's stock worth $270,000 after purchasing an additional 437 shares during the period. Finally, NDVR Inc. lifted its holdings in shares of MGIC Investment by 3.6% during the second quarter. NDVR Inc. now owns 12,708 shares of the insurance provider's stock worth $354,000 after purchasing an additional 445 shares during the period. 95.58% of the stock is currently 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.