MGIC Investment (NYSE:MTG) Stock Price Expected to Rise, Keefe, Bruyette & Woods Analyst Says

Key Points

• Keefe, Bruyette & Woods raised MGIC Investment's price target to $29 from $28 and keeps a "market perform" rating, implying about a 4.7% upside; the consensus analyst view remains a "Hold" with an average target of $28.50.
• MGIC reported quarterly EPS of $0.75 (beating $0.73 consensus), trades around $27.71 with a market cap of $5.96B and a P/E of 8.85, and analysts expect roughly $2.71 EPS for the fiscal year.
• Company insiders have been net sellers — including recent sales by the COO and CEO totaling 339,336 shares (~$9.03M) in the last three months — while institutional ownership is very high at 95.58%, with AQR notably increasing its stake.

MGIC Investment (NYSE:MTG - Get Free Report) had its price target lifted by stock analysts at Keefe, Bruyette & Woods from $28.00 to $29.00 in a research note issued to investors on Friday,Benzinga reports. The brokerage presently has a "market perform" rating on the insurance provider's stock. Keefe, Bruyette & Woods' price objective points to a potential upside of 4.67% from the stock's previous close.

A number of other equities research analysts also recently issued reports on the company. Weiss Ratings downgraded MGIC Investment from a "buy (a-)" rating to a "buy (b+)" rating in a research note on Thursday, February 5th. 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. Finally, Barclays boosted their price target on MGIC Investment from $28.00 to $29.00 and gave the company an "equal weight" rating in a research note on Monday. One equities research analyst has rated the stock with a Buy rating and four have assigned a Hold rating to the company's stock. Based on data from MarketBeat, the company currently has a consensus rating of "Hold" and an average target price of $28.50.

MGIC Investment Stock Performance

Shares of MGIC Investment stock traded down $0.06 during trading hours on Friday, reaching $27.71. 333,715 shares of the stock traded hands, compared to its average volume of 2,184,095. The company has a 50 day moving average price of $26.53 and a 200 day moving average price of $27.47. The firm has a market capitalization of $5.96 billion, a price-to-earnings ratio of 8.85, a P/E/G ratio of 2.18 and a beta of 0.79. MGIC Investment has a one year low of $22.95 and a one year high of $29.97. 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 (NYSE:MTG - Get Free Report) last released its quarterly earnings results on Monday, February 2nd. The insurance provider reported $0.75 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.73 by $0.02. MGIC Investment had a return on equity of 14.33% and a net margin of 60.84%.The company's quarterly revenue was down .9% on a year-over-year basis. During the same quarter in the prior year, the company posted $0.72 earnings per share. On average, equities research analysts expect that MGIC Investment will post 2.71 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other MGIC Investment news, COO Salvatore A. Miosi sold 30,000 shares of the company's stock in a transaction that occurred on Monday, February 2nd. The stock was sold at an average price of $27.27, for a total value of $818,100.00. Following the completion of the transaction, the chief operating officer directly owned 454,245 shares in the company, valued at $12,387,261.15. This represents a 6.20% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. Also, CEO Timothy J. Mattke sold 139,203 shares of the company's stock in a transaction that occurred on Tuesday, January 13th. The stock was sold at an average price of $26.51, for a total value of $3,690,271.53. Following the completion of the transaction, the chief executive officer owned 822,588 shares of the company's stock, valued at $21,806,807.88. The trade was a 14.47% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 339,336 shares of company stock worth $9,032,971 in the last three months. 1.34% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the business. AQR Capital Management LLC raised its holdings in MGIC Investment by 31.3% during the 4th quarter. AQR Capital Management LLC now owns 11,616,282 shares of the insurance provider's stock valued at $339,428,000 after buying an additional 2,771,533 shares during the period. Geode Capital Management LLC raised its holdings in MGIC Investment by 2.8% during 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 period. Allianz Asset Management GmbH raised its holdings in MGIC Investment by 1.0% during 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 period. First Trust Advisors LP raised its holdings in MGIC Investment by 1.7% during 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 period. Finally, Northern Trust Corp raised its holdings in MGIC Investment by 10.7% during 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 period. 95.58% of the stock is currently owned by institutional investors.

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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