Q1 EPS Estimates for MGIC Investment Raised by Analyst

Key Points

• Zacks Research raised MGIC Investment’s Q1 2028 EPS estimate to $0.84 from $0.83, while analysts’ full-year consensus estimate stands at $3.05 per share.
• MGIC Investment reported quarterly EPS of $0.87, beating the $0.76 consensus, although revenue of $295.4 million fell short of expectations and declined 2.9% year over year.
• The company increased its quarterly dividend to $0.17, yielding about 2.2%, and authorized a $750 million share-buyback plan covering up to 12.4% of outstanding shares.

MGIC Investment Corporation (NYSE:MTG - Free Report) - Equities researchers at Zacks Research increased their Q1 2028 EPS estimates for shares of MGIC Investment in a research report issued on Tuesday, July 28th. Zacks Research analyst Team now expects that the insurance provider will post earnings of $0.84 per share for the quarter, up from their previous forecast of $0.83. The consensus estimate for MGIC Investment's current full-year earnings is $3.05 per share.

A number of other research firms have also commented on MTG. Keefe, Bruyette & Woods raised their price target on MGIC Investment from $28.00 to $29.00 and gave the stock a "market perform" rating in a research report on Friday, April 10th. Weiss Ratings upgraded MGIC Investment from a "buy (b)" rating to a "buy (b+)" rating in a research report on Tuesday, July 7th. Royal Bank Of Canada assumed coverage on MGIC Investment in a research note on Friday, May 22nd. They set a "sector perform" rating and a $28.00 target price for the company. Finally, Barclays dropped their target price on shares of MGIC Investment from $29.00 to $28.00 and set an "equal weight" rating on the stock in a report on Friday, May 1st. One investment analyst has rated the stock with a Buy rating and four have assigned a Hold rating to the company. According to MarketBeat.com, the company currently has an average rating of "Hold" and a consensus target price of $28.25.

MGIC Investment Stock Performance

MTG stock opened at $30.59 on Thursday. MGIC Investment has a 1-year low of $24.69 and a 1-year high of $31.03. The company has a current ratio of 1.14, a quick ratio of 1.14 and a debt-to-equity ratio of 0.13. The firm has a market cap of $6.47 billion, a PE ratio of 9.71, a P/E/G ratio of 2.11 and a beta of 0.67. The business's 50-day moving average price is $27.25 and its two-hundred day moving average price is $26.93.

MGIC Investment (NYSE:MTG - Get Free Report) last released its quarterly earnings data on Wednesday, July 29th. The insurance provider reported $0.87 EPS for the quarter, beating analysts' consensus estimates of $0.76 by $0.11. The business had revenue of $295.39 million during the quarter, compared to analysts' expectations of $297.54 million. MGIC Investment had a net margin of 59.63% and a return on equity of 14.01%. The firm's quarterly revenue was down 2.9% on a year-over-year basis. During the same quarter in the prior year, the company earned $0.82 EPS.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the business. Newbridge Financial Services Group Inc. bought a new position in MGIC Investment in the third quarter valued at $28,000. V Square Quantitative Management LLC bought a new stake in MGIC Investment during the 4th quarter worth about $36,000. SBI Securities Co. Ltd. boosted its stake in shares of MGIC Investment by 40.3% during the 4th quarter. SBI Securities Co. Ltd. now owns 1,461 shares of the insurance provider's stock worth $43,000 after buying an additional 420 shares during the last quarter. Geneos Wealth Management Inc. boosted its stake in shares of MGIC Investment by 88.0% during the 1st quarter. Geneos Wealth Management Inc. now owns 1,745 shares of the insurance provider's stock worth $43,000 after buying an additional 817 shares during the last quarter. Finally, Harbor Investment Advisory LLC grew its holdings in shares of MGIC Investment by 613.0% in the 2nd quarter. Harbor Investment Advisory LLC now owns 2,574 shares of the insurance provider's stock valued at $73,000 after acquiring an additional 2,213 shares in the last quarter. Institutional investors and hedge funds own 95.58% of the company's stock.

Insider Transactions at MGIC Investment

In other news, COO Salvatore A. Miosi sold 30,000 shares of the company's stock in a transaction dated Monday, June 8th. The stock was sold at an average price of $25.38, for a total transaction of $761,400.00. Following the completion of the transaction, the chief operating officer directly owned 560,951 shares of the company's stock, valued at $14,236,936.38. This represents a 5.08% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Paula C. Maggio sold 20,937 shares of the stock in a transaction dated Friday, May 29th. The stock was sold at an average price of $25.55, for a total value of $534,940.35. Following the transaction, the executive vice president owned 169,620 shares of the company's stock, valued at approximately $4,333,791. The trade was a 10.99% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 1.34% of the company's stock.

MGIC Investment Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, August 20th. Stockholders of record on Wednesday, August 5th will be issued a $0.17 dividend. This represents a $0.68 dividend on an annualized basis and a dividend yield of 2.2%. This is a positive change from MGIC Investment's previous quarterly dividend of $0.15. The ex-dividend date is Wednesday, August 5th. MGIC Investment's dividend payout ratio is presently 19.05%.

MGIC Investment declared that its Board of Directors has authorized a stock buyback plan on Thursday, April 23rd that authorizes the company to repurchase $750.00 million in shares. This repurchase authorization authorizes the insurance provider to buy up to 12.4% of its stock through open market purchases. Stock repurchase plans are generally a sign that the company's board of directors believes its shares are undervalued.

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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