MGIC Investment (NYSE:MTG) Shares Down 6.5% - Here's Why

Key Points

• Shares dropped 6.5% to about $27.24 after the quarter as investors reacted to a Q1 revenue miss and subsequent analyst estimate downgrades, despite a small EPS beat.
• MGIC reported Q1 EPS of $0.76 (beat by ~$0.03) and net income of $165.3M with strong margins and a 14.33% ROE, but revenue fell ~3% YoY to $297.1M.
• The board authorized a $750M share buyback (up to 12.4% of shares) and declared a $0.15 quarterly dividend (2.3% yield), underscoring a focus on returning capital to shareholders.

MGIC Investment Corporation (NYSE:MTG - Get Free Report) shares dropped 6.5% during trading on Thursday . The company traded as low as $27.20 and last traded at $27.2420. Approximately 1,701,657 shares traded hands during trading, a decline of 20% from the average daily volume of 2,120,761 shares. The stock had previously closed at $29.13.

Key Stories Impacting MGIC Investment

Here are the key news stories impacting MGIC Investment this week:

• Positive Sentiment: Q1 EPS beat and strong profitability — MGIC reported net income of $165.3M, $0.76 per diluted share, topping consensus by ~$0.03; adjusted net operating income matched $0.76. The company highlighted solid execution and maintained strong margins and ROE. PR Newswire: First Quarter 2026 Results
• Neutral Sentiment: Management commentary and slides available — the company provided a conference call, slide deck and press release with detail on business strategy and reserve/margin developments; read the full call transcript for color on origination trends and underwriting. Earnings Call Transcript
• Neutral Sentiment: Zacks and others provide metric comparisons — analysts and services are breaking down key metrics vs. street estimates (loss emergence, premiums, expense ratios) to assess sustainability of margins. Useful for modeling but not a catalyst by itself. Zacks: How Key Metrics Compare
• Negative Sentiment: Revenue missed estimates and was down year-over-year — MGIC reported $297.1M vs. consensus ~$303.1M and revenue fell ~3% YoY, raising concerns about top-line momentum amid mortgage market headwinds. MSN: Misses Q1 Revenue Estimates
• Negative Sentiment: Analyst estimate revisions — Zacks (and street notes) trimmed near-term EPS forecasts slightly after the quarter, signaling cautious sentiment on growth and a modest impact to forward estimates. These cuts can pressure valuation multiple. Zacks: Q1 Earnings Beat & Context
• Negative Sentiment: Market reaction likely driven by the combination of revenue miss and estimate downgrades despite the EPS beat — investors often punish growth misses and forward-looking guidance/estimates more than a small EPS beat. AP: Q1 Earnings Snapshot

Wall Street Analysts Forecast Growth

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

MGIC Investment Stock Down 9.1%

The company has a market cap of $5.69 billion, a P/E ratio of 8.43, a PEG ratio of 2.31 and a beta of 0.79. The stock's 50-day moving average price is $26.85 and its 200-day moving average price is $27.49. The company has a current ratio of 1.52, a quick ratio of 1.52 and a debt-to-equity ratio of 0.13.

MGIC Investment (NYSE:MTG - Get Free Report) last released its quarterly earnings data on Wednesday, April 29th. The insurance provider reported $0.76 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.73 by $0.03. The company had revenue of $297.08 million for the quarter, compared to analysts' expectations of $303.07 million. MGIC Investment had a net margin of 60.84% and a return on equity of 14.33%. The business's revenue was down 3.0% on a year-over-year basis. During the same quarter in the prior year, the firm earned $0.75 EPS. As a group, research analysts forecast that MGIC Investment Corporation will post 3.08 EPS for the current year.

MGIC Investment Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Thursday, May 21st. Investors of record on Wednesday, May 6th will be issued a $0.15 dividend. This represents a $0.60 dividend on an annualized basis and a dividend yield of 2.3%. The ex-dividend date is Wednesday, May 6th. MGIC Investment's dividend payout ratio is currently 19.11%.

MGIC Investment announced that its board has authorized a share buyback program on Thursday, April 23rd that allows the company to repurchase $750.00 million in outstanding shares. This repurchase authorization allows the insurance provider to buy up to 12.4% of its stock through open market purchases. Stock repurchase programs are generally a sign that the company's board of directors believes its stock is undervalued.

Insider Buying and Selling

In related news, COO Salvatore A. Miosi sold 10,931 shares of the company's stock in a transaction dated Wednesday, April 1st. The shares were sold at an average price of $26.25, for a total value of $286,938.75. Following the sale, the chief operating officer owned 590,951 shares in the company, valued at $15,512,463.75. This represents a 1.82% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Timothy J. Mattke sold 139,202 shares of the company's stock in a transaction dated Thursday, April 2nd. The stock was sold at an average price of $26.49, for a total transaction of $3,687,460.98. Following the completion of the sale, the chief executive officer owned 1,118,005 shares in the company, valued at $29,615,952.45. This represents a 11.07% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 200,133 shares of company stock worth $5,342,700 in the last quarter. Insiders own 1.34% of the company's stock.

Institutional Investors Weigh In On MGIC Investment

A number of institutional investors and hedge funds have recently made changes to their positions in the business. AQR Capital Management LLC raised its holdings in shares of MGIC Investment by 31.3% in the 4th quarter. AQR Capital Management LLC now owns 11,616,282 shares of the insurance provider's stock worth $339,428,000 after acquiring an additional 2,771,533 shares during the last quarter. Geode Capital Management LLC increased its stake in MGIC Investment by 2.8% in the 4th quarter. Geode Capital Management LLC now owns 5,371,470 shares of the insurance provider's stock valued at $163,368,000 after buying an additional 146,589 shares during the last quarter. Allianz Asset Management GmbH increased its stake in MGIC Investment by 1.0% in the 4th quarter. Allianz Asset Management GmbH now owns 5,010,157 shares of the insurance provider's stock valued at $146,397,000 after buying an additional 48,064 shares during the last quarter. First Trust Advisors LP increased its stake in MGIC Investment by 1.7% in the 4th quarter. First Trust Advisors LP now owns 4,609,318 shares of the insurance provider's stock valued at $134,684,000 after buying an additional 76,306 shares during the last quarter. Finally, Northern Trust Corp increased its stake in MGIC Investment by 10.7% in the 3rd quarter. Northern Trust Corp now owns 4,561,398 shares of the insurance provider's stock valued at $129,407,000 after buying an additional 441,809 shares during the last quarter. Institutional investors and hedge funds own 95.58% of the company's stock.

About MGIC Investment

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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