Zacks Research Expects Reduced Earnings for MGIC Investment

Key Points

• Zacks Research slightly lowered its Q3 2026 EPS estimate for MGIC Investment to $0.78 from $0.79, and also trimmed longer-term earnings forecasts for 2026 through 2028, signaling softer profit expectations ahead.
• MGIC’s latest quarterly results were solid on earnings: it posted $0.76 EPS, topping Wall Street’s estimate of $0.73. However, revenue came in below expectations at $297.1 million, and sales were down 3% year over year.
• Despite the earnings outlook cuts, MGIC has support from capital returns and valuation: the company authorized a $750 million share buyback and recently paid a $0.15 quarterly dividend, while analysts currently rate the stock a consensus Hold.

MGIC Investment Corporation (NYSE:MTG - Free Report) - Research analysts at Zacks Research cut their Q3 2026 EPS estimates for shares of MGIC Investment in a research report issued to clients and investors on Friday, June 19th. Zacks Research analyst Team now forecasts that the insurance provider will post earnings per share of $0.78 for the quarter, down from their prior forecast of $0.79. The consensus estimate for MGIC Investment's current full-year earnings is $3.05 per share. Zacks Research also issued estimates for MGIC Investment's Q1 2027 earnings at $0.81 EPS, Q1 2028 earnings at $0.86 EPS and FY2028 earnings at $3.40 EPS.

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

MTG has been the subject of a number of other research reports. Barclays lowered their price target on MGIC Investment from $29.00 to $28.00 and set an "equal weight" rating for the company in a research report on Friday, May 1st. UBS Group cut their price objective on MGIC Investment from $29.50 to $28.00 and set a "neutral" rating on the stock in a report on Thursday, March 12th. Keefe, Bruyette & Woods lifted their target price on MGIC Investment from $28.00 to $29.00 and gave the stock a "market perform" rating in a report on Friday, April 10th. Royal Bank Of Canada started coverage on MGIC Investment in a research report on Friday, May 22nd. They issued a "sector perform" rating and a $28.00 target price on the stock. Finally, Weiss Ratings reiterated a "buy (b)" rating on shares of MGIC Investment in a report on Monday, June 15th. One analyst has rated the stock with a Buy rating and four have assigned a Hold rating to the company's stock. Based on data from MarketBeat, the company has a consensus rating of "Hold" and an average price target of $28.25.

MGIC Investment Price Performance

NYSE MTG opened at $26.55 on Wednesday. The company has a debt-to-equity ratio of 0.13, a current ratio of 1.14 and a quick ratio of 1.14. The stock's fifty day moving average price is $26.50 and its 200 day moving average price is $27.01. 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 $5.62 billion, a price-to-earnings ratio of 8.43, a PEG ratio of 1.81 and a beta of 0.68.

MGIC Investment announced that its board has initiated a stock repurchase program on Thursday, April 23rd that permits the company to buyback $750.00 million in outstanding shares. This buyback authorization permits the insurance provider to purchase up to 12.4% of its shares through open market purchases. Shares buyback programs are generally an indication that the company's leadership believes its stock is undervalued.

MGIC Investment Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Thursday, May 21st. Stockholders of record on Wednesday, May 6th were paid a $0.15 dividend. The ex-dividend date was Wednesday, May 6th. This represents a $0.60 dividend on an annualized basis and a dividend yield of 2.3%. MGIC Investment's dividend payout ratio is presently 19.05%.

Insider Buying and Selling

In related news, COO Salvatore A. Miosi sold 30,000 shares of the firm'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 sale, the chief operating officer directly owned 560,951 shares of the company's stock, valued at $14,236,936.38. This trade represents a 5.08% decrease in their ownership of the stock. The transaction was disclosed in a legal 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, CEO Timothy J. Mattke sold 139,202 shares of the business's stock in a transaction that occurred on Thursday, April 2nd. The shares were sold at an average price of $26.49, for a total value of $3,687,460.98. Following the completion of the transaction, the chief executive officer directly owned 1,118,005 shares of the company's stock, valued at $29,615,952.45. The trade was a 11.07% decrease in their ownership of the stock. 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. Insiders have sold a total of 201,070 shares of company stock valued at $5,270,740 over the last ninety days. Company insiders own 1.34% of the company's stock.

Hedge Funds Weigh In On MGIC Investment

Institutional investors have recently made changes to their positions in the company. Newbridge Financial Services Group Inc. purchased a new stake in MGIC Investment during the third quarter worth $28,000. V Square Quantitative Management LLC acquired a new stake in MGIC Investment during the fourth quarter valued at $36,000. SBI Securities Co. Ltd. increased its holdings in MGIC Investment by 40.3% in the fourth quarter. SBI Securities Co. Ltd. now owns 1,461 shares of the insurance provider's stock valued at $43,000 after buying an additional 420 shares in the last quarter. Geneos Wealth Management Inc. increased its holdings in MGIC Investment by 88.0% in the first quarter. Geneos Wealth Management Inc. now owns 1,745 shares of the insurance provider's stock valued at $43,000 after buying an additional 817 shares in the last quarter. Finally, Clearstead Advisors LLC raised its position in shares of MGIC Investment by 24.7% in the third quarter. Clearstead Advisors LLC now owns 2,209 shares of the insurance provider's stock worth $63,000 after acquiring an additional 438 shares during the period. 95.58% of the stock is owned by hedge funds and other institutional investors.

More MGIC Investment News

Here are the key news stories impacting MGIC Investment this week:

• Negative Sentiment: Zacks Research trimmed MGIC Investment’s earnings outlook for multiple future periods, including FY2026 to $3.10 EPS from $3.13, FY2027 to $3.29 from $3.35, and FY2028 to $3.39 from $3.63, signaling softer long-term profit expectations. Article Title
• Negative Sentiment: The firm also lowered quarterly EPS estimates for Q2 2026, Q4 2026, Q2 2027, Q3 2027, Q4 2027, and Q1 2028, reinforcing the view that earnings growth may be more modest than previously expected. Article Title
• Neutral Sentiment: Mackenzie Financial Corp disclosed the sale of 250,601 shares of MTG, a headline that may add to investor caution, though the impact depends on whether the sale reflects portfolio rebalancing or a broader shift in outlook. Article Title

MGIC Investment Company Profile

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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