Zacks Research Expects Weaker Earnings for MGIC Investment

MGIC Investment Corporation (NYSE:MTG) – Equities research analysts at Zacks Research lowered their Q2 2028 earnings per share (EPS) estimates for MGIC Investment in a research note issued to investors on Thursday, June 25th. Zacks Research analyst Team now expects that the insurance provider will post earnings of $0.83 per share for the quarter, down from their previous forecast of $0.88. The consensus estimate for MGIC Investment’s current full-year earnings is $3.05 per share.

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

Several other analysts have also issued reports on the stock. Weiss Ratings reiterated a “buy (b)” rating on shares of MGIC Investment in a research note on Monday, June 15th. Royal Bank Of Canada began coverage on shares of MGIC Investment in a research report on Friday, May 22nd. They set a “sector perform” rating and a $28.00 price target on the stock. Keefe, Bruyette & Woods boosted their price target on shares of MGIC Investment from $28.00 to $29.00 and gave the stock a “market perform” rating in a report on Friday, April 10th. Barclays reduced 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 research report on Friday, May 1st. Finally, UBS Group decreased their price objective on shares of MGIC Investment from $29.50 to $28.00 and set a “neutral” rating for the company in a research note on Thursday, March 12th. One equities research analyst has rated the stock with a Buy rating and four have assigned a Hold rating to the company. According to MarketBeat.com, the company currently has an average rating of “Hold” and a consensus target price of $28.25.

MGIC Investment Price Performance

Shares of NYSE:MTG opened at $28.16 on Thursday. The company has a current ratio of 1.14, a quick ratio of 1.14 and a debt-to-equity ratio of 0.13. The stock’s fifty day simple moving average is $26.52 and its two-hundred day simple moving average is $26.99. MGIC Investment has a 1-year low of $24.69 and a 1-year high of $29.97. The stock has a market cap of $5.96 billion, a PE ratio of 8.94, a price-to-earnings-growth ratio of 1.94 and a beta of 0.67.

Institutional Trading of MGIC Investment

Large investors have recently added to or reduced their stakes in the stock. Militia Capital Management LLC bought a new stake in MGIC Investment in the first quarter worth about $788,000. NewEdge Advisors LLC grew its position in shares of MGIC Investment by 1.8% during the 1st quarter. NewEdge Advisors LLC now owns 141,211 shares of the insurance provider’s stock valued at $3,707,000 after acquiring an additional 2,559 shares during the period. Bank of America Corp DE grew its position in shares of MGIC Investment by 15.4% during the 1st quarter. Bank of America Corp DE now owns 1,415,378 shares of the insurance provider’s stock valued at $37,154,000 after acquiring an additional 188,519 shares during the period. Bull Harbor Capital LLC bought a new position in shares of MGIC Investment during the 1st quarter valued at approximately $352,000. Finally, Strategic Investment Advisors MI purchased a new stake in shares of MGIC Investment during the 1st quarter worth approximately $382,000. Hedge funds and other institutional investors own 95.58% of the company’s stock.

Insider Buying and Selling at MGIC Investment

In related news, EVP Paula C. Maggio sold 20,937 shares of the business’s 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 transaction, the executive vice president directly owned 169,620 shares of the company’s stock, valued at approximately $4,333,791. The trade was a 10.99% decrease in their position. The sale was disclosed in a 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. Also, COO Salvatore A. Miosi sold 30,000 shares of the business’s stock in a transaction dated Monday, June 8th. The stock was sold at an average price of $25.38, for a total transaction of $761,400.00. Following the completion of the transaction, the chief operating officer directly owned 560,951 shares in the company, valued at $14,236,936.38. This trade represents a 5.08% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 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 has approved a share repurchase program on Thursday, April 23rd that authorizes the company to repurchase $750.00 million in outstanding shares. This repurchase authorization authorizes the insurance provider to buy up to 12.4% of its shares through open market purchases. Shares repurchase programs are often a sign that the company’s management believes its stock is undervalued.

MGIC Investment Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Thursday, May 21st. Shareholders 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 2.1%. The ex-dividend date was Wednesday, May 6th. MGIC Investment’s dividend payout ratio 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.