Q4 EPS Estimates for MGIC Investment Cut by Roth Capital

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) - Investment analysts at Roth Capital dropped their Q4 2025 earnings estimates for shares of MGIC Investment in a research note issued to investors on Monday, August 4th. Roth Capital analyst H. Fong now anticipates that the insurance provider will post earnings per share of $0.73 for the quarter, down from their previous forecast 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.

Other equities analysts also recently issued research reports about the stock. Keefe, Bruyette & Woods increased their price target on shares of MGIC Investment from $26.00 to $27.00 and gave the stock a "market perform" rating in a report on Monday, July 7th. Barclays increased their price target on shares of MGIC Investment from $26.00 to $27.00 and gave the stock an "equal weight" rating in a report on Tuesday, July 8th. Finally, Compass Point reaffirmed a "neutral" rating and set a $28.00 price objective (up previously from $27.00) on shares of MGIC Investment in a research note on Friday, May 23rd. One investment analyst has rated the stock with a sell rating and five have assigned a hold rating to the company's stock. According to MarketBeat, the company currently has a consensus rating of "Hold" and an average target price of $26.67.

MGIC Investment Stock Performance

NYSE:MTG traded up $0.71 during midday trading on Wednesday, hitting $27.17. The company's stock had a trading volume of 2,097,625 shares, compared to its average volume of 2,360,614. MGIC Investment has a fifty-two week low of $21.94 and a fifty-two week high of $28.67. The firm's 50 day moving average is $26.55 and its 200-day moving average is $25.34. The company has a debt-to-equity ratio of 0.13, a current ratio of 1.46 and a quick ratio of 1.46. The firm has a market cap of $6.26 billion, a P/E ratio of 8.91, a P/E/G ratio of 1.99 and a beta of 0.90.

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

Institutional Investors Weigh In On MGIC Investment

A number of institutional investors have recently added to or reduced their stakes in the stock. JPMorgan Chase & Co. grew its stake in MGIC Investment by 4.8% in the 1st quarter. JPMorgan Chase & Co. now owns 16,162,180 shares of the insurance provider's stock valued at $400,499,000 after acquiring an additional 743,212 shares during the period. First Trust Advisors LP grew its stake in MGIC Investment by 22.4% in the 4th quarter. First Trust Advisors LP now owns 16,008,489 shares of the insurance provider's stock valued at $379,561,000 after acquiring an additional 2,928,595 shares during the period. LSV Asset Management grew its stake in MGIC Investment by 2.9% in the 1st quarter. LSV Asset Management now owns 10,888,437 shares of the insurance provider's stock valued at $269,815,000 after acquiring an additional 310,095 shares during the period. Allianz Asset Management GmbH grew its stake in MGIC Investment by 40.6% in the 2nd quarter. Allianz Asset Management GmbH now owns 5,398,356 shares of the insurance provider's stock valued at $150,290,000 after acquiring an additional 1,557,970 shares during the period. Finally, Invesco Ltd. grew its stake in MGIC Investment by 16.6% in the 4th quarter. Invesco Ltd. now owns 4,766,195 shares of the insurance provider's stock valued at $113,006,000 after acquiring an additional 677,227 shares during the period. Institutional investors and hedge funds own 95.58% of the company's stock.

Insider Transactions at MGIC Investment

In other news, CEO Timothy J. Mattke sold 139,203 shares of the firm's stock in a transaction that occurred on Thursday, August 7th. The shares were sold at an average price of $26.54, for a total transaction of $3,694,447.62. Following the sale, the chief executive officer owned 1,100,994 shares of the company's stock, valued at $29,220,380.76. This trade represents a 11.22% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, EVP Paula C. Maggio sold 20,000 shares of the firm's stock in a transaction that occurred on Friday, May 30th. The stock was sold at an average price of $26.49, for a total transaction of $529,800.00. Following the sale, the executive vice president directly owned 157,395 shares in the company, valued at $4,169,393.55. The trade was a 11.27% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 189,203 shares of company stock valued at $5,010,848 in the last 90 days. 1.05% of the stock is currently owned by company insiders.

MGIC Investment announced that its board has initiated a share repurchase plan on Thursday, April 24th that authorizes the company to repurchase $750.00 million in outstanding shares. This repurchase authorization authorizes the insurance provider to buy up to 12.5% of its shares through open market purchases. Shares repurchase plans are generally a sign that the company's board believes its shares are undervalued.

MGIC Investment Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, August 21st. Stockholders of record on Thursday, August 7th will be paid a dividend of $0.15 per share. 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. This is a positive change from MGIC Investment's previous quarterly dividend of $0.13. MGIC Investment's dividend payout ratio is 19.67%.

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.