MGIC Investment (NYSE:MTG) Reaches New 52-Week High Following Earnings Beat

MGIC Investment Co. (NYSE:MTG) shares reached a new 52-week high during mid-day trading on Wednesday following a better than expected earnings announcement. The company traded as high as $25.04 and last traded at $24.89, with a volume of 2889074 shares. The stock had previously closed at $24.68.

The insurance provider reported $0.75 earnings per share for the quarter, beating analysts’ consensus estimates of $0.66 by $0.09. The firm had revenue of $306.23 million during the quarter, compared to the consensus estimate of $306.66 million. MGIC Investment had a return on equity of 14.86% and a net margin of 63.18%. The business’s revenue was up 4.0% compared to the same quarter last year. During the same period last year, the company earned $0.65 earnings per share.

MGIC Investment Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, May 21st. Stockholders of record on Thursday, May 8th will be given a $0.13 dividend. This represents a $0.52 dividend on an annualized basis and a dividend yield of 2.05%. The ex-dividend date is Thursday, May 8th. MGIC Investment’s dividend payout ratio (DPR) is presently 17.28%.

MGIC Investment announced that its Board of Directors has initiated a share buyback plan on Thursday, April 24th that permits the company to repurchase $750.00 million in outstanding shares. This repurchase authorization permits the insurance provider to purchase up to 12.5% of its shares through open market purchases. Shares repurchase plans are generally an indication that the company’s board believes its shares are undervalued.

Analysts Set New Price Targets

A number of research firms recently commented on MTG. Compass Point reiterated a “neutral” rating and set a $27.00 price target (up previously from $24.00) on shares of MGIC Investment in a report on Wednesday, February 5th. UBS Group boosted their target price on MGIC Investment from $25.00 to $26.00 and gave the stock a “neutral” rating in a report on Wednesday, February 19th. Barclays raised their price target on MGIC Investment from $25.00 to $26.00 and gave the company an “equal weight” rating in a report on Wednesday, February 5th. Finally, Keefe, Bruyette & Woods cut their target price on shares of MGIC Investment from $28.00 to $26.00 and set a “market perform” rating for the company in a research note on Tuesday, April 8th. One analyst has rated the stock with a sell rating, five have given a hold rating and two have assigned a buy rating to the company. According to MarketBeat, the company presently has a consensus rating of “Hold” and a consensus price target of $26.50.

Insider Transactions at MGIC Investment

In other news, CAO Julie K. Sperber sold 4,600 shares of the company’s stock in a transaction on Friday, February 21st. The stock was sold at an average price of $24.55, for a total transaction of $112,930.00. Following the completion of the sale, the chief accounting officer now directly owns 75,070 shares in the company, valued at approximately $1,842,968.50. This represents a 5.77 % decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Insiders own 1.05% of the company’s stock.

Institutional Investors Weigh In On MGIC Investment

Institutional investors and hedge funds have recently bought and sold shares of the company. UMB Bank n.a. lifted its holdings in shares of MGIC Investment by 131.9% during the 4th quarter. UMB Bank n.a. now owns 1,649 shares of the insurance provider’s stock worth $39,000 after acquiring an additional 938 shares during the period. Venturi Wealth Management LLC raised its position in MGIC Investment by 102.1% during the fourth quarter. Venturi Wealth Management LLC now owns 1,817 shares of the insurance provider’s stock valued at $43,000 after purchasing an additional 918 shares in the last quarter. V Square Quantitative Management LLC lifted its stake in MGIC Investment by 61.9% during the fourth quarter. V Square Quantitative Management LLC now owns 2,077 shares of the insurance provider’s stock worth $49,000 after purchasing an additional 794 shares during the last quarter. Golden State Wealth Management LLC boosted its holdings in shares of MGIC Investment by 7,837.0% in the 1st quarter. Golden State Wealth Management LLC now owns 2,143 shares of the insurance provider’s stock valued at $53,000 after purchasing an additional 2,116 shares in the last quarter. Finally, Physician Wealth Advisors Inc. acquired a new position in shares of MGIC Investment during the 4th quarter worth $54,000. Institutional investors own 95.58% of the company’s stock.

MGIC Investment Trading Up 1.7 %

The firm has a 50-day moving average of $23.91 and a two-hundred day moving average of $24.45. The firm has a market capitalization of $6.14 billion, a P/E ratio of 8.73 and a beta of 0.93. The company has a current ratio of 0.48, a quick ratio of 1.25 and a debt-to-equity ratio of 0.12.

MGIC Investment Company Profile

MGIC Investment Corporation, through its subsidiaries, provides private mortgage insurance, other mortgage credit risk management solutions, and ancillary services to lenders and government sponsored entities in the United States, the District of Columbia, Puerto Rico, and Guam. The company offers primary mortgage insurance that provides mortgage default protection on individual loans, as well as covers unpaid loan principal, delinquent interest, and various expenses associated with the default and subsequent foreclosure.