Roth Capital Forecasts Reduced Earnings for MGIC Investment

Key Points

• Roth Capital has reduced its Q4 2025 earnings per share (EPS) estimate for MGIC Investment to $0.73, down from $0.74, while the consensus for the full year stands at $2.71 per share.
• MGIC Investment's board approved a stock repurchase plan of $750 million, indicating confidence in the company's valuation.
• The company recently declared an increased quarterly dividend of $0.15 per share, up from $0.13, reflecting a 2.2% dividend yield.

MGIC Investment Corporation (NYSE:MTG - Free Report) - Equities research analysts at Roth Capital cut their Q4 2025 EPS estimates for shares of MGIC Investment in a research report issued to clients and investors on Monday, August 4th. Roth Capital analyst H. Fong now forecasts that the insurance provider will post earnings per share of $0.73 for the quarter, down from their prior estimate of $0.74. The consensus estimate for MGIC Investment's current full-year earnings is $2.71 per share. Roth Capital also issued estimates for MGIC Investment's Q4 2026 earnings at $0.81 EPS.

MTG has been the subject of several other reports. Keefe, Bruyette & Woods increased their price objective on MGIC Investment from $26.00 to $27.00 and gave the company a "market perform" rating in a report on Monday, July 7th. Barclays lifted their price objective on MGIC Investment from $26.00 to $27.00 and gave the stock an "equal weight" rating in a research report on Tuesday, July 8th. Finally, Compass Point reiterated a "neutral" rating and set a $28.00 target price (up from $27.00) on shares of MGIC Investment in a research report on Friday, May 23rd. One analyst has rated the stock with a sell rating and five have issued a hold rating to the company. Based on data from MarketBeat.com, MGIC Investment has an average rating of "Hold" and an average target price of $26.67.

MGIC Investment Price Performance

MGIC Investment stock opened at $26.92 on Wednesday. The firm has a market cap of $6.21 billion, a PE ratio of 8.83, a price-to-earnings-growth ratio of 1.96 and a beta of 0.90. The company's 50 day moving average is $26.52 and its two-hundred day moving average is $25.30. The company has a quick ratio of 1.46, a current ratio of 1.46 and a debt-to-equity ratio of 0.13. MGIC Investment has a 52-week low of $21.94 and a 52-week high of $28.67.

MGIC Investment (NYSE:MTG - Get Free Report) last released its quarterly earnings data on Wednesday, July 30th. The insurance provider reported $0.82 earnings per share for the quarter, topping analysts' consensus estimates of $0.70 by $0.12. MGIC Investment had a return on equity of 14.73% and a net margin of 62.58%. The company had revenue of $304.25 million for the quarter, compared to analyst estimates of $306.25 million. During the same quarter in the previous year, the company posted $0.77 earnings per share. The firm's revenue for the quarter was down .3% compared to the same quarter last year.

Hedge Funds Weigh In On MGIC Investment

Several institutional investors have recently modified their holdings of the business. WPG Advisers LLC bought a new stake in MGIC Investment during the first quarter worth about $26,000. Hantz Financial Services Inc. raised its holdings in MGIC Investment by 3,067.6% in the 2nd quarter. Hantz Financial Services Inc. now owns 1,077 shares of the insurance provider's stock valued at $30,000 after acquiring an additional 1,043 shares during the period. Cullen Frost Bankers Inc. bought a new position in MGIC Investment in the 1st quarter valued at about $33,000. Quarry LP bought a new position in MGIC Investment in the 1st quarter valued at about $38,000. Finally, Geneos Wealth Management Inc. boosted its holdings in MGIC Investment by 88.0% in the 1st quarter. Geneos Wealth Management Inc. now owns 1,745 shares of the insurance provider's stock valued at $43,000 after purchasing an additional 817 shares during the period. Institutional investors 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 firm's stock in a transaction dated Friday, August 1st. The stock was sold at an average price of $26.22, for a total value of $786,600.00. Following the sale, the chief operating officer directly owned 249,401 shares of the company's stock, valued at approximately $6,539,294.22. This trade represents a 10.74% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, EVP Paula C. Maggio sold 20,000 shares of MGIC Investment stock in a transaction dated Friday, May 30th. The shares were sold at an average price of $26.49, for a total transaction of $529,800.00. Following the sale, the executive vice president owned 157,395 shares in the company, valued at approximately $4,169,393.55. This trade represents a 11.27% decrease in their ownership of the stock. The disclosure for this sale can be found here. 1.41% of the stock is owned by insiders.

MGIC Investment declared that its board has approved a stock repurchase plan on Thursday, April 24th that permits the company to repurchase $750.00 million in outstanding shares. This repurchase authorization permits the insurance provider to purchase up to 12.5% of its shares through open market purchases. Shares repurchase plans are generally an indication that the company's leadership believes its shares are undervalued.

MGIC Investment Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, August 21st. Shareholders of record on Thursday, August 7th will be given a $0.15 dividend. This is an increase from MGIC Investment's previous quarterly dividend of $0.13. This represents a $0.60 dividend on an annualized basis and a dividend yield of 2.2%. The ex-dividend date of this dividend is Thursday, August 7th. MGIC Investment's payout ratio is presently 17.05%.

About MGIC Investment

MGIC Investment Corporation, through its subsidiaries, provides private mortgage insurance, other mortgage credit risk management solutions, and ancillary services to lenders and government sponsored entities in the United States, the District of Columbia, Puerto Rico, and Guam. The company offers primary mortgage insurance that provides mortgage default protection on individual loans, as well as covers unpaid loan principal, delinquent interest, and various expenses associated with the default and subsequent foreclosure.

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