MGIC Investment (NYSE:MTG) Sets New 1-Year High – Time to Buy?

MGIC Investment Corporation (NYSE:MTG)’s share price hit a new 52-week high during trading on Monday . The stock traded as high as $29.97 and last traded at $30.0090, with a volume of 261680 shares changing hands. The stock had previously closed at $29.65.

Analysts Set New Price Targets

A number of brokerages have recently weighed in on MTG. Keefe, Bruyette & Woods boosted their price objective 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 decreased their target price on shares of MGIC Investment from $29.00 to $28.00 and set an “equal weight” rating on the stock in a research report on Friday, May 1st. Royal Bank Of Canada initiated coverage on shares of MGIC Investment in a research note on Friday, May 22nd. They issued a “sector perform” rating and a $28.00 price target for the company. Finally, Weiss Ratings upgraded shares of MGIC Investment from a “buy (b)” rating to a “buy (b+)” rating in a research report on Tuesday, July 7th. One analyst has rated the stock with a Buy rating and four have issued a Hold rating to the company. According to MarketBeat.com, the company has a consensus rating of “Hold” and a consensus price target of $28.25.

MGIC Investment Price Performance

The company has a quick ratio of 1.14, a current ratio of 1.14 and a debt-to-equity ratio of 0.13. The firm’s fifty day moving average price is $27.01 and its 200-day moving average price is $26.90. The stock has a market cap of $6.35 billion, a P/E ratio of 9.54, a PEG ratio of 2.04 and a beta of 0.67.

MGIC Investment (NYSE:MTG) last announced its quarterly earnings results 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. The business had revenue of $297.08 million during the quarter, compared to analysts’ expectations of $303.12 million. MGIC Investment had a net margin of 59.63% and a return on equity of 14.01%. The firm’s revenue for the quarter was down 3.0% compared to the same quarter last year. During the same quarter in the prior year, the company posted $0.75 EPS. Analysts forecast that MGIC Investment Corporation will post 3.05 earnings per share for the current year.

MGIC Investment Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, August 20th. Stockholders of record on Wednesday, August 5th will be issued a dividend of $0.17 per share. This is an increase from MGIC Investment’s previous quarterly dividend of $0.15. This represents a $0.68 dividend on an annualized basis and a dividend yield of 2.3%. The ex-dividend date is Wednesday, August 5th. MGIC Investment’s dividend payout ratio (DPR) is currently 19.05%.

MGIC Investment announced that its board has authorized a share buyback program on Thursday, April 23rd that permits the company to buyback $750.00 million in shares. This buyback authorization permits the insurance provider to purchase up to 12.4% of its stock through open market purchases. Stock buyback programs are typically an indication that the company’s management believes its stock is undervalued.

Insider Activity

In other MGIC Investment news, COO Salvatore A. Miosi sold 30,000 shares of the stock in a transaction that occurred on Monday, June 8th. The stock was sold at an average price of $25.38, for a total value of $761,400.00. Following the completion of the sale, the chief operating officer owned 560,951 shares in the company, valued at approximately $14,236,936.38. This trade represents a 5.08% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Paula C. Maggio sold 20,937 shares of MGIC Investment stock in a transaction that occurred on Friday, May 29th. The stock was sold at an average price of $25.55, for a total value of $534,940.35. Following the completion of the sale, the executive vice president owned 169,620 shares in the company, valued at approximately $4,333,791. This represents a 10.99% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 1.34% of the stock is owned by company insiders.

Institutional Trading of MGIC Investment

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the business. AQR Capital Management LLC grew its holdings in shares of MGIC Investment by 31.3% during the 4th quarter. AQR Capital Management LLC now owns 11,616,282 shares of the insurance provider’s stock worth $339,428,000 after acquiring an additional 2,771,533 shares during the period. Geode Capital Management LLC grew its stake in 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 worth $163,368,000 after purchasing an additional 146,589 shares during the period. Allianz Asset Management GmbH raised its holdings in MGIC Investment by 1.0% in the fourth quarter. Allianz Asset Management GmbH now owns 5,010,157 shares of the insurance provider’s stock worth $146,397,000 after purchasing an additional 48,064 shares in the last quarter. First Trust Advisors LP lifted its position in MGIC Investment by 1.7% during the fourth quarter. First Trust Advisors LP now owns 4,609,318 shares of the insurance provider’s stock valued at $134,684,000 after buying an additional 76,306 shares during the period. Finally, Northern Trust Corp boosted its holdings in shares of MGIC Investment by 10.7% during the 3rd quarter. Northern Trust Corp now owns 4,561,398 shares of the insurance provider’s stock valued at $129,407,000 after buying an additional 441,809 shares in the last quarter. Hedge funds and other institutional investors own 95.58% of the company’s stock.

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.