MGIC Investment (NYSE:MTG) Shares Break Below 200-Day Moving Average - Here's What Happened

Key Points

• MGIC Investment shares slipped below their 200-day moving average of $27.84, reaching a low of $27.60 before last trading at $27.725.
• Analysts’ consensus rating is Hold, with an average price target of $31.00; recent targets ranged from $30 to $35.
• The company beat quarterly earnings expectations, reporting $0.85 per share versus $0.81 forecast, and declared a quarterly dividend of $0.17 per share.

MGIC Investment Corporation (NYSE:MTG - Get Free Report) shares crossed below its 200-day moving average during trading on Thursday. The stock has a 200-day moving average of $27.84 and traded as low as $27.60. MGIC Investment shares last traded at $27.7250, with a volume of 2,649,029 shares.

Analysts Set New Price Targets

A number of research firms recently weighed in on MTG. Roth Capital reiterated a "buy" rating and issued a $35.00 price objective on shares of MGIC Investment in a research note on Thursday, July 30th. Weiss Ratings upgraded MGIC Investment from a "buy (b+)" rating to a "buy (a-)" rating in a research report on Wednesday, August 19th. Keefe, Bruyette & Woods raised their price target on MGIC Investment from $29.00 to $30.00 and gave the stock a "market perform" rating in a report on Friday, July 31st. BTIG Research assumed coverage on MGIC Investment in a research report on Tuesday, September 22nd. They issued a "hold" rating for the company. Finally, Royal Bank Of Canada boosted their price objective on MGIC Investment from $28.00 to $32.00 and gave the company a "sector perform" rating in a research note on Friday, July 31st. One equities research analyst has rated the stock with a Strong Buy rating, one has given a Buy rating and six have issued a Hold rating to the stock. Based on data from MarketBeat.com, the company has a consensus rating of "Hold" and a consensus target price of $31.00.

MGIC Investment Stock Performance

The business's fifty day moving average price is $28.59 and its 200-day moving average price is $27.84. The company has a debt-to-equity ratio of 0.13, a current ratio of 1.28 and a quick ratio of 1.28. The stock has a market capitalization of $5.52 billion, a PE ratio of 8.61, a P/E/G ratio of 1.42 and a beta of 0.64.

MGIC Investment (NYSE:MTG - Get Free Report) last issued its quarterly earnings data on Wednesday, November 4th. The insurance provider reported $0.85 EPS for the quarter, beating the consensus estimate of $0.81 by $0.04. The company had revenue of $299.08 million during the quarter, compared to analysts' expectations of $298.66 million. MGIC Investment had a net margin of 58.12% and a return on equity of 13.81%. MGIC Investment's revenue for the quarter was down 1.8% on a year-over-year basis. During the same quarter in the previous year, the company earned $0.83 earnings per share. As a group, equities research analysts expect that MGIC Investment Corporation will post 3.21 EPS for the current year.

MGIC Investment Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Monday, November 23rd. Shareholders of record on Thursday, November 12th will be issued a $0.17 dividend. This represents a $0.68 annualized dividend and a yield of 2.5%. The ex-dividend date of this dividend is Thursday, November 12th. MGIC Investment's dividend payout ratio (DPR) is presently 21.12%.

Insiders Place Their Bets

In other news, COO Salvatore Miosi sold 30,000 shares of the business's stock in a transaction on Thursday, October 1st. The shares were sold at an average price of $26.06, for a total transaction of $781,800.00. Following the completion of the transaction, the chief operating officer directly owned 440,951 shares in the company, valued at $11,491,183.06. The trade was a 6.37% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Timothy Mattke sold 137,114 shares of the company's stock in a transaction on Thursday, October 1st. The stock was sold at an average price of $26.23, for a total transaction of $3,596,500.22. Following the completion of the transaction, the chief executive officer directly owned 843,778 shares in the company, valued at approximately $22,132,296.94. The trade was a 13.98% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 197,114 shares of company stock valued at $5,300,200 over the last 90 days. Company insiders own 1.34% of the company's stock.

Hedge Funds Weigh In On MGIC Investment

Several hedge funds and other institutional investors have recently added to or reduced their stakes in MTG. BlackRock Inc. bought a new stake in shares of MGIC Investment during the 2nd quarter valued at about $618,467,000. First Trust Advisors LP raised its stake in MGIC Investment by 2.2% in the third quarter. First Trust Advisors LP now owns 4,641,970 shares of the insurance provider's stock valued at $119,949,000 after purchasing an additional 99,256 shares in the last quarter. Caisse de depot et placement du Quebec purchased a new stake in MGIC Investment in the second quarter valued at approximately $98,074,000. NewEdge Wealth LLC bought a new stake in MGIC Investment during the second quarter valued at approximately $71,375,000. Finally, Bank of New York Mellon Corp bought a new stake in MGIC Investment during the second quarter valued at approximately $51,059,000. 95.58% of the stock is currently owned by hedge funds and other institutional investors.

About MGIC Investment

MGIC Investment Corporation is a mortgage insurance company whose principal subsidiary, Mortgage Guaranty Insurance Corporation (MGIC), provides private mortgage insurance to lenders. Its coverage helps protect lenders from losses if borrowers default on their mortgages and can help qualified borrowers purchase homes with smaller down payments. Founded in 1957 by Max H. Karl, MGIC is widely recognized as a pioneer in the private mortgage insurance industry. The company serves mortgage lenders and borrowers across the United States.

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