MGIC Investment Co. (NYSE:MTG) to Issue Dividend Increase – $0.13 Per Share

MGIC Investment Co. (NYSE:MTG) announced a quarterly dividend on Thursday, July 25th, Wall Street Journal reports. Shareholders of record on Thursday, August 8th will be paid a dividend of 0.13 per share by the insurance provider on Thursday, August 22nd. This represents a $0.52 dividend on an annualized basis and a yield of 2.19%. The ex-dividend date of this dividend is Thursday, August 8th. This is a positive change from MGIC Investment’s previous quarterly dividend of $0.12.

MGIC Investment has a payout ratio of 17.4% meaning its dividend is sufficiently covered by earnings. Research analysts expect MGIC Investment to earn $2.63 per share next year, which means the company should continue to be able to cover its $0.46 annual dividend with an expected future payout ratio of 17.5%.

MGIC Investment Stock Performance

Shares of MTG stock opened at $23.70 on Wednesday. The company has a current ratio of 1.11, a quick ratio of 1.05 and a debt-to-equity ratio of 0.13. MGIC Investment has a 12-month low of $16.30 and a 12-month high of $25.93. The company has a market cap of $6.32 billion, a price-to-earnings ratio of 9.12, a price-to-earnings-growth ratio of 3.02 and a beta of 1.28. The stock has a 50 day simple moving average of $22.15 and a 200-day simple moving average of $20.98.

MGIC Investment (NYSE:MTG) last released its quarterly earnings data on Wednesday, July 31st. The insurance provider reported $0.77 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.62 by $0.15. The firm had revenue of $305.28 million during the quarter, compared to analysts’ expectations of $301.02 million. MGIC Investment had a return on equity of 14.97% and a net margin of 63.19%. MGIC Investment’s revenue was up 5.0% compared to the same quarter last year. During the same quarter in the prior year, the business posted $0.68 earnings per share. On average, equities analysts forecast that MGIC Investment will post 2.54 EPS for the current year.

Analysts Set New Price Targets

Several analysts recently commented on the stock. UBS Group raised their price objective on shares of MGIC Investment from $21.00 to $22.00 and gave the company a “neutral” rating in a research note on Wednesday, May 22nd. Roth Mkm lifted their price target on shares of MGIC Investment from $24.00 to $30.00 and gave the company a “buy” rating in a research report on Friday, August 2nd. Keefe, Bruyette & Woods upgraded MGIC Investment from a “market perform” rating to an “outperform” rating and upped their price target for the stock from $24.00 to $25.00 in a report on Monday, June 3rd. Barclays raised their price objective on MGIC Investment from $21.00 to $23.00 and gave the company an “equal weight” rating in a research note on Friday, August 2nd. Finally, BTIG Research boosted their target price on MGIC Investment from $22.00 to $25.00 and gave the stock a “buy” rating in a research report on Monday. Four equities research analysts have rated the stock with a hold rating and three have given a buy rating to the company’s stock. According to data from MarketBeat.com, MGIC Investment has a consensus rating of “Hold” and an average target price of $24.33.

About MGIC Investment

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.