Q2 EPS Estimates for MGIC Investment Reduced by Analyst

Key Points

• Zacks Research lowered its Q2 2028 EPS estimate for MGIC Investment to $0.83 from $0.88, while the company’s full-year earnings consensus remains $3.05 per share.
• MGIC recently beat last quarter’s EPS expectations, reporting $0.76 per share versus the $0.73 consensus, though revenue came in slightly below estimates at $297.08 million.
• The company announced a $750 million share buyback authorization, and its latest quarterly dividend was $0.15 per share, implying a 2.1% annualized yield.

MGIC Investment Corporation (NYSE:MTG - Free Report) - Stock analysts at Zacks Research cut their Q2 2028 EPS estimates for shares of MGIC Investment in a research note issued to investors on Thursday, June 25th. Zacks Research analyst Team now anticipates that the insurance provider will earn $0.83 per share for the quarter, down from their prior estimate of $0.88. The consensus estimate for MGIC Investment's current full-year earnings is $3.05 per share.

MGIC Investment (NYSE:MTG - Get Free Report) last announced its earnings results on Wednesday, April 29th. The insurance provider reported $0.76 earnings per share for the quarter, topping analysts' consensus estimates of $0.73 by $0.03. The business had revenue of $297.08 million during the quarter, compared to the consensus estimate of $303.12 million. MGIC Investment had a net margin of 59.63% and a return on equity of 14.01%. MGIC Investment's quarterly revenue was down 3.0% on a year-over-year basis. During the same quarter last year, the firm earned $0.75 earnings per share.

A number of other research analysts also recently issued reports on MTG. Keefe, Bruyette & Woods boosted their price objective on MGIC Investment from $28.00 to $29.00 and gave the company a "market perform" rating in a research note on Friday, April 10th. Barclays decreased their target price on MGIC Investment from $29.00 to $28.00 and set an "equal weight" rating for the company in a research note on Friday, May 1st. UBS Group lowered their target price on MGIC Investment from $29.50 to $28.00 and set a "neutral" rating for the company in a report on Thursday, March 12th. Royal Bank Of Canada initiated coverage on MGIC Investment in a research note on Friday, May 22nd. They issued a "sector perform" rating and a $28.00 price target on the stock. Finally, Weiss Ratings restated a "buy (b)" rating on shares of MGIC Investment in a report on Monday, June 15th. One investment analyst has rated the stock with a Buy rating and four have given a Hold rating to the stock. According to MarketBeat.com, the company currently has an average rating of "Hold" and an average target price of $28.25.

MGIC Investment Stock Performance

Shares of MGIC Investment stock opened at $28.16 on Thursday. 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 business has a 50-day moving average price of $26.52 and a two-hundred day moving average price of $26.99. MGIC Investment has a 1-year low of $24.69 and a 1-year high of $29.97. The company has a market cap of $5.96 billion, a P/E ratio of 8.94, a PEG ratio of 1.94 and a beta of 0.67.

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.

MGIC Investment Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Thursday, May 21st. Stockholders of record on Wednesday, May 6th were given a dividend of $0.15 per share. This represents a $0.60 dividend on an annualized basis and a dividend yield of 2.1%. The ex-dividend date of this dividend was Wednesday, May 6th. MGIC Investment's dividend payout ratio is 19.05%.

Insider Activity

In related news, COO Salvatore A. Miosi sold 30,000 shares of the company's stock in a transaction that occurred on Monday, June 8th. The stock was sold at an average price of $25.38, for a total transaction of $761,400.00. Following the transaction, the chief operating officer directly owned 560,951 shares of the company's stock, valued at approximately $14,236,936.38. This represents a 5.08% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. 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 that occurred on Friday, May 29th. The stock was sold at an average price of $25.55, for a total value of $534,940.35. Following the completion of the transaction, the executive vice president owned 169,620 shares in the company, valued at approximately $4,333,791. The trade was a 10.99% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Company insiders own 1.34% of the company's stock.

Institutional Investors Weigh In On MGIC Investment

Several hedge funds and other institutional investors have recently modified their holdings of MTG. Jefferies Financial Group Inc. raised its holdings in MGIC Investment by 245.3% during the fourth quarter. Jefferies Financial Group Inc. now owns 364,650 shares of the insurance provider's stock worth $10,655,000 after buying an additional 259,039 shares during the last quarter. Geode Capital Management LLC grew its holdings in shares of MGIC Investment by 2.8% during the fourth 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. Arbejdsmarkedets Tillaegspension acquired a new position in shares of MGIC Investment during the fourth quarter valued at about $24,456,000. Tudor Investment Corp ET AL increased its position in shares of MGIC Investment by 106.1% during the third quarter. Tudor Investment Corp ET AL now owns 687,445 shares of the insurance provider's stock worth $19,503,000 after acquiring an additional 353,935 shares in the last quarter. Finally, Intech Investment Management LLC bought a new stake in shares of MGIC Investment during the third quarter worth about $1,444,000. Institutional investors 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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