Zacks Research Forecasts Higher Earnings for MGIC Investment

Key Points

• Zacks Research raised MGIC Investment’s Q3 2026 EPS estimate to $0.79 from $0.78, and also projected higher earnings for later periods, including FY2027 EPS of $3.35.
• MGIC recently beat Wall Street’s quarterly profit estimate, reporting $0.76 EPS versus the expected $0.73, though revenue came in slightly below consensus and fell 3% year over year.
• The company announced shareholder-friendly capital returns, including a quarterly dividend of $0.15 per share and a new $750 million stock buyback authorization.

MGIC Investment Corporation (NYSE:MTG - Free Report) - Equities research analysts at Zacks Research increased their Q3 2026 earnings per share estimates for shares of MGIC Investment in a report released on Wednesday, May 20th. Zacks Research analyst Team now anticipates that the insurance provider will earn $0.79 per share for the quarter, up from their prior estimate of $0.78. The consensus estimate for MGIC Investment's current full-year earnings is $3.06 per share. Zacks Research also issued estimates for MGIC Investment's Q2 2027 earnings at $0.82 EPS, Q4 2027 earnings at $0.88 EPS, FY2027 earnings at $3.35 EPS and Q1 2028 earnings at $0.87 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 for the quarter, topping analysts' consensus estimates of $0.73 by $0.03. MGIC Investment had a return on equity of 14.01% and a net margin of 59.63%.The business had revenue of $297.08 million for the quarter, compared to the consensus estimate of $303.12 million. During the same period in the prior year, the business earned $0.75 EPS. The firm's revenue for the quarter was down 3.0% on a year-over-year basis.

A number of other research firms also recently weighed in on MTG. Barclays dropped their price target on MGIC Investment from $29.00 to $28.00 and set an "equal weight" rating on the stock in a research note on Friday, May 1st. UBS Group dropped their price target on MGIC Investment from $29.50 to $28.00 and set a "neutral" rating on the stock in a research note on Thursday, March 12th. Weiss Ratings downgraded MGIC Investment from a "buy (a-)" rating to a "buy (b+)" rating in a research note on Thursday, February 5th. Finally, Keefe, Bruyette & Woods increased their price objective on MGIC Investment from $28.00 to $29.00 and gave the stock a "market perform" rating in a research note on Friday, April 10th. One equities research analyst has rated the stock with a Buy rating and four have assigned a Hold rating to the stock. Based on data from MarketBeat.com, MGIC Investment currently has a consensus rating of "Hold" and a consensus target price of $28.25.

MGIC Investment Stock Up 1.1%

MTG stock opened at $26.37 on Thursday. The stock's 50 day simple moving average is $26.78 and its 200 day simple moving average is $27.42. MGIC Investment has a fifty-two week low of $24.77 and a fifty-two week high of $29.97. The company has a debt-to-equity ratio of 0.13, a quick ratio of 1.14 and a current ratio of 1.14. The company has a market cap of $5.58 billion, a P/E ratio of 8.37, a price-to-earnings-growth ratio of 1.79 and a beta of 0.71.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently modified their holdings of the stock. Bank of America Corp DE increased its position in MGIC Investment by 15.4% in the first quarter. Bank of America Corp DE now owns 1,415,378 shares of the insurance provider's stock worth $37,154,000 after buying an additional 188,519 shares during the last quarter. Bull Harbor Capital LLC bought a new stake in shares of MGIC Investment in the first quarter valued at $352,000. Strategic Investment Advisors MI bought a new stake in shares of MGIC Investment in the first quarter valued at $382,000. South Dakota Investment Council raised its stake in shares of MGIC Investment by 29.7% in the first quarter. South Dakota Investment Council now owns 335,644 shares of the insurance provider's stock valued at $8,811,000 after buying an additional 76,800 shares during the period. Finally, Amundi raised its stake in shares of MGIC Investment by 23.2% in the first quarter. Amundi now owns 110,053 shares of the insurance provider's stock valued at $2,889,000 after buying an additional 20,714 shares during the period. 95.58% of the stock is owned by institutional investors.

Insider Transactions at MGIC Investment

In other news, COO Salvatore A. Miosi sold 10,931 shares of the stock in a transaction that occurred on Wednesday, April 1st. The shares were sold at an average price of $26.25, for a total transaction of $286,938.75. Following the completion of the transaction, the chief operating officer directly owned 590,951 shares of the company's stock, valued at $15,512,463.75. This represents a 1.82% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Timothy J. Mattke sold 139,202 shares of the stock in a transaction that occurred on Thursday, April 2nd. The shares were sold at an average price of $26.49, for a total transaction of $3,687,460.98. Following the transaction, the chief executive officer directly owned 1,118,005 shares of the company's stock, valued at $29,615,952.45. This represents 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. Company insiders own 1.34% of the company's stock.

MGIC Investment Announces Dividend

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

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

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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