Zacks Research Raises Earnings Estimates for MGIC Investment

Key Points

• Zacks Research raised its FY2026 EPS estimate for MGIC Investment to $3.13 from $3.09, above the current consensus estimate of $3.06 per share. The firm also forecast Q1 2027 EPS of $0.81.
• MGIC Investment beat recent quarterly earnings expectations, reporting $0.76 EPS versus the $0.73 consensus, though revenue of $297.08 million came in below estimates and fell 3% year over year.
• The company has been returning capital to shareholders through a new $750 million share repurchase authorization and a quarterly dividend of $0.15 per share, equal to a 2.3% annualized yield.

MGIC Investment Corporation (NYSE:MTG - Free Report) - Analysts at Zacks Research upped their FY2026 earnings per share (EPS) estimates for shares of MGIC Investment in a research report issued to clients and investors on Wednesday, May 20th. Zacks Research analyst Team now expects that the insurance provider will post earnings per share of $3.13 for the year, up from their previous forecast of $3.09. 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 Q1 2027 earnings at $0.81 EPS.

Other research analysts also recently issued reports about the company. Weiss Ratings downgraded MGIC Investment from a "buy (a-)" rating to a "buy (b+)" rating in a report on Thursday, February 5th. Barclays cut their target price on MGIC Investment from $29.00 to $28.00 and set an "equal weight" rating on the stock in a report on Friday, May 1st. 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. Finally, UBS Group cut their target price on MGIC Investment from $29.50 to $28.00 and set a "neutral" rating on the stock in a report on Thursday, March 12th. One equities research analyst has rated the stock with a Buy rating and four have issued a Hold rating to the company's stock. Based on data from MarketBeat.com, the company presently has an average rating of "Hold" and a consensus target price of $28.25.

MGIC Investment Stock Down 0.7%

Shares of MTG opened at $26.16 on Friday. The company has a market capitalization of $5.53 billion, a PE ratio of 8.30, a PEG ratio of 1.81 and a beta of 0.71. MGIC Investment has a 12 month low of $24.77 and a 12 month high of $29.97. The stock's 50-day moving average price is $26.77 and its two-hundred day moving average price is $27.41. 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 (NYSE:MTG - Get Free Report) last released its quarterly earnings data on Wednesday, April 29th. The insurance provider reported $0.76 earnings per share for the quarter, beating the consensus estimate of $0.73 by $0.03. MGIC Investment had a return on equity of 14.01% and a net margin of 59.63%.The company had revenue of $297.08 million for the quarter, compared to the consensus estimate of $303.12 million. During the same quarter last year, the business posted $0.75 EPS. MGIC Investment's revenue for the quarter was down 3.0% on a year-over-year basis.

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the business. Newbridge Financial Services Group Inc. bought a new position in shares of MGIC Investment in the 3rd quarter worth about $28,000. SBI Securities Co. Ltd. raised its position in shares of MGIC Investment by 61.1% in the 3rd quarter. SBI Securities Co. Ltd. now owns 1,041 shares of the insurance provider's stock worth $30,000 after acquiring an additional 395 shares in the last quarter. V Square Quantitative Management LLC bought a new position in shares of MGIC Investment in the 4th quarter worth about $36,000. Root Financial Partners LLC bought a new position in shares of MGIC Investment in the 3rd quarter worth about $38,000. Finally, Whittier Trust Co. of Nevada Inc. raised its position in shares of MGIC Investment by 58.0% in the 3rd quarter. Whittier Trust Co. of Nevada Inc. now owns 1,365 shares of the insurance provider's stock worth $38,000 after acquiring an additional 501 shares in the last quarter. 95.58% of the stock is owned by institutional investors.

Insider Activity

In other news, COO Salvatore A. Miosi sold 10,931 shares of MGIC Investment stock in a transaction dated Wednesday, April 1st. The stock was sold at an average price of $26.25, for a total value 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 approximately $15,512,463.75. This trade represents a 1.82% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Timothy J. Mattke sold 139,202 shares of MGIC Investment stock in a transaction dated Thursday, April 2nd. The stock was 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 approximately $29,615,952.45. This trade represents a 11.07% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 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 announced that its Board of Directors has approved a share repurchase 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 a sign that the company's board of directors believes its stock is undervalued.

MGIC Investment Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Thursday, May 21st. Stockholders of record on Wednesday, May 6th were given a $0.15 dividend. The ex-dividend date of this dividend was Wednesday, May 6th. This represents a $0.60 annualized dividend and a dividend yield of 2.3%. MGIC Investment's dividend payout ratio (DPR) is 19.05%.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.