Key Points
- MGIC Investment EVP Paula Maggio sold 20,937 shares on May 29 at an average price of $25.55, totaling about $534,940. The sale was made under a pre-arranged Rule 10b5-1 plan, and her stake fell 10.99% to 169,620 shares.
- The stock was down 0.5% and opened at $25.09, near its 52-week low of $24.77. MGIC Investment’s shares also trade below both their 50-day and 200-day moving averages.
- MGIC Investment recently beat earnings expectations with Q1 EPS of $0.76 versus the $0.73 estimate, while revenue came in slightly below forecasts. The company also authorized a $750 million share buyback and pays a quarterly dividend of $0.15 per share.
MGIC Investment Corporation (NYSE:MTG - Get Free Report) EVP Paula Maggio sold 20,937 shares of MGIC Investment stock in a transaction dated Friday, May 29th. The shares were sold at an average price of $25.55, for a total value of $534,940.35. Following the sale, the executive vice president owned 169,620 shares of the company's stock, valued at approximately $4,333,791. This represents a 10.99% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.
MGIC Investment Stock Down 0.5%
Shares of MGIC Investment stock opened at $25.09 on Tuesday. The firm has a market cap of $5.31 billion, a price-to-earnings ratio of 7.96, a P/E/G ratio of 1.73 and a beta of 0.68. The company has a debt-to-equity ratio of 0.13, a current ratio of 1.14 and a quick ratio of 1.14. MGIC Investment Corporation has a 52-week low of $24.77 and a 52-week high of $29.97. The stock has a 50-day simple moving average of $26.73 and a 200-day simple moving average of $27.29.
MGIC Investment (NYSE:MTG - Get Free Report) last announced its quarterly 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 business 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%.The firm's revenue was down 3.0% on a year-over-year basis. During the same period in the previous year, the company earned $0.75 EPS. On average, equities research analysts expect that MGIC Investment Corporation will post 3.06 earnings per share for the current fiscal year.
MGIC Investment announced that its Board of Directors has initiated a stock buyback plan on Thursday, April 23rd that permits the company to buyback $750.00 million in shares. This buyback authorization permits the insurance provider to repurchase up to 12.4% of its stock through open market purchases. Stock buyback plans are often an indication that the company's board of directors believes its shares are undervalued.
MGIC Investment Dividend Announcement
The company also recently declared a quarterly dividend, which was paid on Thursday, May 21st. Stockholders of record on Wednesday, May 6th were issued a dividend of $0.15 per share. This represents a $0.60 annualized dividend and a dividend yield of 2.4%. The ex-dividend date was Wednesday, May 6th. MGIC Investment's payout ratio is currently 19.05%.
Analysts Set New Price Targets
A number of research analysts recently weighed in on MTG shares. Barclays cut their price objective 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 cut their price objective 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. Keefe, Bruyette & Woods raised their price objective on MGIC Investment from $28.00 to $29.00 and gave the company a "market perform" rating in a research note on Friday, April 10th. Weiss Ratings downgraded MGIC Investment from a "buy (a-)" rating to a "buy (b+)" rating in a research note on Thursday, February 5th. Finally, Royal Bank Of Canada started coverage on MGIC Investment in a research note on Friday, May 22nd. They issued a "sector perform" rating and a $28.00 price objective on the stock. One research analyst has rated the stock with a Buy rating and four have given a Hold rating to the stock. According to MarketBeat, MGIC Investment presently has a consensus rating of "Hold" and an average price target of $28.25.
Get Our Latest Stock Report on MGIC Investment
Institutional Inflows and Outflows
Institutional investors have recently added to or reduced their stakes in the business. Newbridge Financial Services Group Inc. bought a new position in MGIC Investment in the 3rd quarter worth approximately $28,000. SBI Securities Co. Ltd. increased its position in 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 buying an additional 395 shares during the period. V Square Quantitative Management LLC bought a new position in MGIC Investment in the 4th quarter worth approximately $36,000. Abich Financial Wealth Management LLC bought a new position in MGIC Investment in the 3rd quarter worth approximately $42,000. Finally, Geneos Wealth Management Inc. increased its position in MGIC Investment by 88.0% in the 1st quarter. Geneos Wealth Management Inc. now owns 1,745 shares of the insurance provider's stock worth $43,000 after buying an additional 817 shares during the period. 95.58% of the stock is owned by institutional investors.
About MGIC Investment
(
Get Free Report)
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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