Key Points
- MGIC Investment EVP Paula Maggio sold 20,000 shares at an average price of $30.30, generating $606,000. The transaction was made under a pre-arranged Rule 10b5-1 plan, reducing her ownership by 11.79% to 149,620 shares.
- The company reported quarterly EPS of $0.87, exceeding analysts’ $0.76 estimate, while revenue of $295.39 million declined 2.9% year over year. Shares recently traded near $30.29, close to the analyst consensus target of $30.60.
- MGIC Investment authorized a $750 million share repurchase program covering up to 12.4% of outstanding shares and raised its quarterly dividend from $0.15 to $0.17, resulting in a 2.2% annualized yield.
MGIC Investment Corporation (NYSE:MTG - Get Free Report) EVP Paula Maggio sold 20,000 shares of MGIC Investment stock in a transaction that occurred on Friday, August 7th. The stock was sold at an average price of $30.30, for a total transaction of $606,000.00. Following the transaction, the executive vice president owned 149,620 shares in the company, valued at approximately $4,533,486. The trade was a 11.79% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.
MGIC Investment Price Performance
Shares of NYSE:MTG opened at $30.29 on Tuesday. The company's fifty day moving average is $28.01 and its two-hundred day moving average is $27.14. The company has a market cap of $6.21 billion, a P/E ratio of 9.47, a price-to-earnings-growth ratio of 0.78 and a beta of 0.66. MGIC Investment Corporation has a 12-month low of $24.69 and a 12-month high of $31.89. The company has a quick ratio of 1.19, a current ratio of 1.19 and a debt-to-equity ratio of 0.13.
MGIC Investment (NYSE:MTG - Get Free Report) last issued its earnings results on Wednesday, July 29th. The insurance provider reported $0.87 EPS for the quarter, topping the consensus estimate of $0.76 by $0.11. MGIC Investment had a return on equity of 13.90% and a net margin of 59.20%.The business had revenue of $295.39 million during the quarter, compared to analysts' expectations of $297.54 million. During the same quarter last year, the firm posted $0.82 earnings per share. MGIC Investment's revenue was down 2.9% compared to the same quarter last year. Equities analysts expect that MGIC Investment Corporation will post 3.21 earnings per share for the current fiscal year.
MGIC Investment announced that its Board of Directors has approved a share buyback program on Thursday, April 23rd that allows the company to buyback $750.00 million in shares. This buyback authorization allows the insurance provider to purchase up to 12.4% of its stock through open market purchases. Stock buyback programs are often a sign that the company's management believes its stock is undervalued.
MGIC Investment Increases Dividend
The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, August 20th. Investors of record on Wednesday, August 5th will be paid a $0.17 dividend. The ex-dividend date of this dividend is Wednesday, August 5th. This represents a $0.68 annualized dividend and a yield of 2.2%. This is an increase from MGIC Investment's previous quarterly dividend of $0.15. MGIC Investment's dividend payout ratio (DPR) is currently 21.25%.
Analyst Upgrades and Downgrades
A number of equities analysts have recently weighed in on the company. Barclays dropped 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. Roth Capital restated a "buy" rating and set a $35.00 price target on shares of MGIC Investment in a report on Thursday, July 30th. Royal Bank Of Canada boosted their price objective on shares of MGIC Investment from $28.00 to $32.00 and gave the company a "sector perform" rating in a research report on Friday, July 31st. Weiss Ratings upgraded shares of MGIC Investment from a "buy (b)" rating to a "buy (b+)" rating in a research note on Tuesday, July 7th. Finally, Keefe, Bruyette & Woods increased their target price on shares of MGIC Investment from $29.00 to $30.00 and gave the stock a "market perform" rating in a research report on Friday, July 31st. Two research analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company. Based on data from MarketBeat.com, the company has an average rating of "Hold" and a consensus price target of $30.60.
Get Our Latest Stock Analysis on MTG
Institutional Inflows and Outflows
A number of institutional investors have recently made changes to their positions in the stock. Jefferies Financial Group Inc. boosted its position in MGIC Investment by 245.3% during the fourth quarter. Jefferies Financial Group Inc. now owns 364,650 shares of the insurance provider's stock worth $10,655,000 after purchasing an additional 259,039 shares during the period. Geode Capital Management LLC raised its position in shares of MGIC Investment by 2.8% in the fourth quarter. Geode Capital Management LLC now owns 5,371,470 shares of the insurance provider's stock valued at $163,368,000 after purchasing an additional 146,589 shares during the period. Arbejdsmarkedets Tillaegspension bought a new position in shares of MGIC Investment in the fourth quarter valued at approximately $24,456,000. Norges Bank acquired a new stake in shares of MGIC Investment in the fourth quarter worth $96,248,000. Finally, Assetmark Inc. lifted its stake in shares of MGIC Investment by 21.8% in the fourth quarter. Assetmark Inc. now owns 2,038,558 shares of the insurance provider's stock worth $59,567,000 after buying an additional 364,406 shares during the last quarter. 95.58% of the stock is owned by institutional investors.
MGIC Investment Company Profile
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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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