MGIC Investment (NYSE:MTG) Hits New 52-Week High - Still a Buy?

MGIC Investment Co. (NYSE:MTG - Get Free Report)'s stock price reached a new 52-week high on Thursday . The stock traded as high as $26.92 and last traded at $26.88, with a volume of 1130530 shares trading hands. The stock had previously closed at $26.54.

Analyst Upgrades and Downgrades

Several brokerages recently issued reports on MTG. Keefe, Bruyette & Woods reduced their price objective 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. UBS Group upped their target price on MGIC Investment from $25.00 to $26.00 and gave the company a "neutral" rating in a report on Wednesday, February 19th. Finally, Compass Point reissued a "neutral" rating and issued a $28.00 price target (up from $27.00) on shares of MGIC Investment in a research report on Friday, May 23rd. One investment analyst has rated the stock with a sell rating, five have assigned a hold rating and two have assigned a buy rating to the company. Based on data from MarketBeat, the stock currently has an average rating of "Hold" and a consensus price target of $26.63.

MGIC Investment Trading Up 0.2%

The firm has a market capitalization of $6.40 billion, a price-to-earnings ratio of 9.29 and a beta of 0.89. The company has a fifty day moving average price of $25.41 and a 200-day moving average price of $24.71. The company has a current ratio of 0.48, a quick ratio of 1.25 and a debt-to-equity ratio of 0.12.

MGIC Investment (NYSE:MTG - Get Free Report) last announced its quarterly earnings results on Wednesday, April 30th. The insurance provider reported $0.75 EPS for the quarter, topping the consensus estimate of $0.66 by $0.09. The company had revenue of $306.23 million for the quarter, compared to analyst estimates of $306.66 million. MGIC Investment had a net margin of 63.18% and a return on equity of 14.86%. MGIC Investment's quarterly revenue was up 4.0% on a year-over-year basis. During the same quarter in the prior year, the business posted $0.65 EPS. On average, equities research analysts predict that MGIC Investment Co. will post 2.71 EPS for the current year.

MGIC Investment Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Wednesday, May 21st. Shareholders of record on Thursday, May 8th were issued a dividend of $0.13 per share. The ex-dividend date was Thursday, May 8th. This represents a $0.52 annualized dividend and a yield of 1.93%. MGIC Investment's dividend payout ratio (DPR) is currently 17.28%.

MGIC Investment announced that its board has initiated a stock repurchase program on Thursday, April 24th that authorizes the company to buyback $750.00 million in shares. This buyback authorization authorizes the insurance provider to buy up to 12.5% of its stock through open market purchases. Stock buyback programs are generally an indication that the company's board believes its stock is undervalued.

Insider Activity

In other MGIC Investment news, EVP Paula C. Maggio sold 20,000 shares of the company's stock in a transaction that occurred on Friday, May 30th. The stock was sold at an average price of $26.49, for a total transaction of $529,800.00. Following the completion of the sale, the executive vice president now owns 157,395 shares of the company's stock, valued at $4,169,393.55. This represents a 11.27% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. 1.41% of the stock is currently owned by insiders.

Institutional Investors Weigh In On MGIC Investment

Hedge funds and other institutional investors have recently made changes to their positions in the business. Asset Management One Co. Ltd. grew its holdings in MGIC Investment by 311.0% in the 4th quarter. Asset Management One Co. Ltd. now owns 66,493 shares of the insurance provider's stock valued at $1,575,000 after buying an additional 50,316 shares during the last quarter. Empowered Funds LLC bought a new stake in shares of MGIC Investment in the fourth quarter valued at approximately $1,166,000. Allianz Asset Management GmbH grew its stake in shares of MGIC Investment by 8.2% in the fourth quarter. Allianz Asset Management GmbH now owns 5,495,115 shares of the insurance provider's stock worth $130,289,000 after acquiring an additional 415,586 shares during the last quarter. Wells Fargo & Company MN increased its position in MGIC Investment by 14.8% during the fourth quarter. Wells Fargo & Company MN now owns 90,987 shares of the insurance provider's stock worth $2,157,000 after acquiring an additional 11,721 shares during the period. Finally, Captrust Financial Advisors bought a new position in MGIC Investment during the fourth quarter worth $230,000. 95.58% of the stock is owned by institutional investors and hedge funds.

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.