MGIC Investment Corporation (NYSE:MTG) Receives Consensus Rating of “Moderate Buy” from Brokerages

MGIC Investment Corporation (NYSE:MTG) has been given a consensus rating of “Moderate Buy” by the seven ratings firms that are covering the company, Marketbeat Ratings reports. Four research analysts have rated the stock with a hold recommendation, one has issued a buy recommendation and two have assigned a strong buy recommendation to the company. The average 1-year price objective among brokers that have issued a report on the stock in the last year is $30.60.

MTG has been the subject of a number of research analyst reports. Keefe, Bruyette & Woods raised their price objective on MGIC Investment from $29.00 to $30.00 and gave the company a “market perform” rating in a research report on Friday, July 31st. Weiss Ratings upgraded MGIC Investment from a “buy (b+)” rating to a “buy (a-)” rating in a research report on Wednesday, August 19th. Roth Capital reissued a “buy” rating and set a $35.00 price target on shares of MGIC Investment in a research note on Thursday, July 30th. Zacks Research upgraded MGIC Investment from a “hold” rating to a “strong-buy” rating in a report on Tuesday, August 25th. Finally, Royal Bank Of Canada increased their target price on MGIC Investment from $28.00 to $32.00 and gave the company a “sector perform” rating in a research report on Friday, July 31st.

MGIC Investment Price Performance

Shares of MTG stock traded down $0.10 during mid-day trading on Friday, hitting $29.57. The company had a trading volume of 247,211 shares, compared to its average volume of 1,987,679. The company has a debt-to-equity ratio of 0.13, a current ratio of 1.19 and a quick ratio of 1.19. The stock’s 50 day moving average price is $30.31 and its 200-day moving average price is $27.95. MGIC Investment has a 52-week low of $24.69 and a 52-week high of $31.89. The company has a market capitalization of $6.07 billion, a P/E ratio of 9.25, a P/E/G ratio of 0.75 and a beta of 0.65.

MGIC Investment (NYSE:MTG) last posted its earnings results on Wednesday, July 29th. The insurance provider reported $0.87 earnings per share for the quarter, beating the consensus estimate of $0.76 by $0.11. The company had revenue of $295.39 million during the quarter, compared to analysts’ expectations of $297.54 million. MGIC Investment had a net margin of 59.20% and a return on equity of 13.90%. MGIC Investment’s quarterly revenue was down 2.9% on a year-over-year basis. During the same period last year, the company posted $0.82 earnings per share. Equities research analysts forecast that MGIC Investment will post 3.24 earnings per share for the current year.

MGIC Investment Increases Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Thursday, August 20th. Shareholders of record on Wednesday, August 5th were given a dividend of $0.17 per share. This represents a $0.68 annualized dividend and a yield of 2.3%. This is an increase from MGIC Investment’s previous quarterly dividend of $0.15. The ex-dividend date was Wednesday, August 5th. MGIC Investment’s dividend payout ratio (DPR) is 21.25%.

Insider Transactions at MGIC Investment

In other MGIC Investment news, EVP Paula C. Maggio sold 20,000 shares of the business’s stock in a transaction that occurred on Friday, August 7th. The stock was sold at an average price of $30.30, for a total transaction of $606,000.00. Following the sale, the executive vice president directly owned 149,620 shares of the company’s stock, valued at $4,533,486. The trade was a 11.79% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, COO Salvatore A. Miosi sold 30,000 shares of the firm’s stock in a transaction that occurred on Tuesday, September 1st. The shares were sold at an average price of $30.73, for a total value of $921,900.00. Following the completion of the sale, the chief operating officer directly owned 470,951 shares of the company’s stock, valued at $14,472,324.23. The trade was a 5.99% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 1.34% of the company’s stock.

Hedge Funds Weigh In On MGIC Investment

Several large investors have recently modified their holdings of the stock. Mitsubishi UFJ Asset Management Co. Ltd. purchased a new position in MGIC Investment during the second quarter worth $62,000. Harbor Investment Advisory LLC raised its stake in shares of MGIC Investment by 613.0% in the second quarter. Harbor Investment Advisory LLC now owns 2,574 shares of the insurance provider’s stock valued at $73,000 after acquiring an additional 2,213 shares during the period. Root Financial Partners LLC raised its stake in shares of MGIC Investment by 100.7% in the first quarter. Root Financial Partners LLC now owns 3,022 shares of the insurance provider’s stock valued at $79,000 after acquiring an additional 1,516 shares during the period. Caitong International Asset Management Co. Ltd lifted its holdings in shares of MGIC Investment by 957.6% in the 4th quarter. Caitong International Asset Management Co. Ltd now owns 3,046 shares of the insurance provider’s stock worth $89,000 after acquiring an additional 2,758 shares during the last quarter. Finally, Nykredit A S bought a new stake in shares of MGIC Investment in the 2nd quarter worth about $87,000. Institutional investors own 95.58% of the company’s stock.

MGIC Investment Company Profile

MGIC Investment Corporation (NYSE: MTG) is a holding company whose principal subsidiary is Mortgage Guaranty Insurance Corporation (MGIC), a provider of private mortgage insurance in the United States. MGIC’s insurance helps lenders manage the risk associated with residential mortgages made to borrowers who have limited down payments, allowing qualified homebuyers to obtain financing with less than 20% down.

MGIC primarily offers primary mortgage insurance to mortgage lenders, banks, credit unions and other residential lending institutions.