Zacks Research Lowers Earnings Estimates for MGIC Investment

Key Points

• Zacks Research slightly lowered its FY2026 EPS estimate for MGIC Investment to $3.09 from $3.10, while the broader consensus stands at $3.05 per share.
• The stock remains viewed cautiously by Wall Street overall, with a consensus rating of Hold and an average price target of $28.25 versus a recent price of $27.36.
• MGIC Investment recently beat quarterly EPS estimates at $0.76 per share and also authorized a $750 million share buyback, signaling confidence in its valuation.

MGIC Investment Corporation (NYSE:MTG - Free Report) - Stock analysts at Zacks Research reduced their FY2026 EPS estimates for shares of MGIC Investment in a research report issued on Thursday, June 25th. Zacks Research analyst Team now expects that the insurance provider will post earnings per share of $3.09 for the year, down from their previous estimate of $3.10. 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 Q2 2027 earnings at $0.79 EPS and FY2027 earnings at $3.27 EPS.

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

MGIC Investment Stock Performance

Shares of MGIC Investment stock opened at $27.36 on Friday. The business's fifty day simple moving average is $26.49 and its 200 day simple moving average is $27.00. The company has a current ratio of 1.14, a quick ratio of 1.14 and a debt-to-equity ratio of 0.13. MGIC Investment has a 12 month low of $24.69 and a 12 month high of $29.97. The firm has a market capitalization of $5.79 billion, a P/E ratio of 8.69, a price-to-earnings-growth ratio of 1.86 and a beta of 0.68.

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

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

MGIC Investment Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Thursday, May 21st. Investors of record on Wednesday, May 6th were paid a $0.15 dividend. This represents a $0.60 dividend on an annualized basis and a yield of 2.2%. The ex-dividend date was Wednesday, May 6th. MGIC Investment's payout ratio is currently 19.05%.

Insider Activity at MGIC Investment

In other MGIC Investment news, CEO Timothy J. Mattke sold 139,202 shares of the business's stock in a transaction 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 sale, the chief executive officer 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 position. The sale was disclosed in a legal filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, COO Salvatore A. Miosi sold 30,000 shares of the stock in a transaction on Monday, June 8th. The stock was sold at an average price of $25.38, for a total value of $761,400.00. Following the sale, the chief operating officer owned 560,951 shares in the company, valued at approximately $14,236,936.38. This represents a 5.08% 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. In the last ninety days, insiders sold 201,070 shares of company stock worth $5,270,740. Corporate insiders own 1.34% of the company's stock.

Institutional Inflows and Outflows

Several large investors have recently added to or reduced their stakes in the stock. Norges Bank purchased a new stake in shares of MGIC Investment in the fourth quarter worth about $96,248,000. AQR Capital Management LLC increased its holdings in MGIC Investment by 92.4% during the 2nd quarter. AQR Capital Management LLC now owns 6,333,091 shares of the insurance provider's stock worth $176,313,000 after acquiring an additional 3,041,446 shares during the period. Arbejdsmarkedets Tillaegspension bought a new stake in MGIC Investment during the 4th quarter worth approximately $24,456,000. Jane Street Group LLC lifted its stake in MGIC Investment by 71.2% in the 4th quarter. Jane Street Group LLC now owns 1,739,877 shares of the insurance provider's stock worth $50,839,000 after purchasing an additional 723,480 shares in the last quarter. Finally, Caisse de depot et placement du Quebec lifted its stake in MGIC Investment by 20.4% in the 3rd quarter. Caisse de depot et placement du Quebec now owns 3,943,965 shares of the insurance provider's stock worth $111,890,000 after purchasing an additional 667,876 shares in the last quarter. 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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