MGIC Investment Corporation (NYSE:MTG) Receives $28.25 Average Price Target from Brokerages

MGIC Investment Corporation (NYSE:MTG) has received an average rating of “Hold” from the five analysts that are presently covering the stock, MarketBeat Ratings reports. Four research analysts have rated the stock with a hold recommendation and one has given a buy recommendation to the company. The average 12 month price objective among analysts that have issued a report on the stock in the last year is $28.25.

A number of analysts have recently weighed in on MTG shares. Weiss Ratings downgraded MGIC Investment from a “buy (a-)” rating to a “buy (b+)” rating in a research report on Thursday, February 5th. Royal Bank Of Canada initiated coverage on MGIC Investment in a report on Friday, May 22nd. They set a “sector perform” rating and a $28.00 price target for the company. Keefe, Bruyette & Woods boosted their price target on MGIC Investment from $28.00 to $29.00 and gave the stock a “market perform” rating in a report on Friday, April 10th. Barclays lowered their price target on MGIC Investment from $29.00 to $28.00 and set an “equal weight” rating for the company in a report on Friday, May 1st. Finally, UBS Group lowered their price target on MGIC Investment from $29.50 to $28.00 and set a “neutral” rating for the company in a report on Thursday, March 12th.

Insiders Place Their Bets

In other news, COO Salvatore A. Miosi sold 10,931 shares of the business’s stock in a transaction on Wednesday, April 1st. The stock was sold at an average price of $26.25, for a total transaction of $286,938.75. Following the completion of the transaction, the chief operating officer owned 590,951 shares of the company’s stock, valued at approximately $15,512,463.75. The trade was a 1.82% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Timothy J. Mattke sold 139,202 shares of the firm’s stock in a transaction that occurred on Thursday, April 2nd. The shares were sold at an average price of $26.49, for a total transaction of $3,687,460.98. Following the completion of the sale, the chief executive officer owned 1,118,005 shares in the company, valued at $29,615,952.45. This represents a 11.07% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 1.34% of the stock is currently owned by insiders.

Institutional Trading of MGIC Investment

A number of hedge funds have recently added to or reduced their stakes in the stock. Compound Planning Inc. raised its position in MGIC Investment by 5.3% during the 3rd quarter. Compound Planning Inc. now owns 7,788 shares of the insurance provider’s stock valued at $221,000 after purchasing an additional 389 shares during the last quarter. SBI Securities Co. Ltd. raised its position in MGIC Investment by 61.1% during the 3rd quarter. SBI Securities Co. Ltd. now owns 1,041 shares of the insurance provider’s stock valued at $30,000 after purchasing an additional 395 shares during the last quarter. Waddell & Associates LLC lifted its position in shares of MGIC Investment by 5.3% in the 3rd quarter. Waddell & Associates LLC now owns 8,090 shares of the insurance provider’s stock worth $230,000 after purchasing an additional 410 shares during the period. Clearstead Advisors LLC lifted its position in shares of MGIC Investment by 24.7% in the 3rd quarter. Clearstead Advisors LLC now owns 2,209 shares of the insurance provider’s stock worth $63,000 after purchasing an additional 438 shares during the period. Finally, Oregon Public Employees Retirement Fund lifted its position in shares of MGIC Investment by 1.1% in the 1st quarter. Oregon Public Employees Retirement Fund now owns 44,972 shares of the insurance provider’s stock worth $1,181,000 after purchasing an additional 481 shares during the period. Institutional investors and hedge funds own 95.58% of the company’s stock.

MGIC Investment Stock Performance

NYSE:MTG opened at $25.51 on Friday. The stock has a fifty day moving average price of $26.76 and a 200-day moving average price of $27.34. The company has a market cap of $5.39 billion, a price-to-earnings ratio of 8.10, a PEG ratio of 1.78 and a beta of 0.71. The company has a debt-to-equity ratio of 0.13, a quick ratio of 1.14 and a current ratio of 1.14. MGIC Investment has a fifty-two week low of $24.77 and a fifty-two week high of $29.97.

MGIC Investment (NYSE:MTG) last released its earnings results on Wednesday, April 29th. The insurance provider reported $0.76 earnings per share for the quarter, beating analysts’ consensus estimates of $0.73 by $0.03. The firm 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%.The company’s revenue was down 3.0% compared to the same quarter last year. During the same period in the prior year, the company posted $0.75 EPS. As a group, equities analysts anticipate that MGIC Investment will post 3.06 EPS for the current fiscal year.

MGIC Investment declared that its board has approved a share repurchase program on Thursday, April 23rd that allows the company to buyback $750.00 million in shares. This buyback authorization allows the insurance provider to buy up to 12.4% of its shares through open market purchases. Shares buyback programs are generally a sign that the company’s board believes its shares are undervalued.

MGIC Investment Dividend Announcement

The firm 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. The ex-dividend date of this dividend was Wednesday, May 6th. This represents a $0.60 dividend on an annualized basis and a dividend yield of 2.4%. MGIC Investment’s payout ratio is 19.05%.

MGIC Investment Company Profile

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.