MGIC Investment (NYSE:MTG) Hits New 1-Year High – Here’s Why

MGIC Investment Corporation (NYSE:MTG) reached a new 52-week high during mid-day trading on Wednesday . The company traded as high as $29.08 and last traded at $28.9650, with a volume of 1952074 shares changing hands. The stock had previously closed at $27.79.

Analyst Upgrades and Downgrades

Several brokerages have weighed in on MTG. Barclays increased their price target on MGIC Investment from $27.00 to $28.00 and gave the stock a “cautious” rating in a research report on Monday, October 6th. Weiss Ratings restated a “buy (a-)” rating on shares of MGIC Investment in a research note on Wednesday, October 8th. One equities research analyst has rated the stock with a Strong Buy rating, three have assigned a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the stock currently has an average rating of “Hold” and an average target price of $27.25.

MGIC Investment Stock Up 4.2%

The company has a quick ratio of 1.48, a current ratio of 1.48 and a debt-to-equity ratio of 0.12. The business has a 50-day simple moving average of $27.68 and a 200-day simple moving average of $27.33. The company has a market cap of $6.48 billion, a PE ratio of 9.31, a P/E/G ratio of 1.55 and a beta of 0.85.

MGIC Investment (NYSE:MTG) last announced its earnings results on Wednesday, October 29th. The insurance provider reported $0.83 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.72 by $0.11. The firm had revenue of $304.51 million for the quarter, compared to analyst estimates of $308.16 million. MGIC Investment had a return on equity of 14.62% and a net margin of 61.96%.The business’s revenue was down .7% on a year-over-year basis. During the same quarter last year, the firm posted $0.77 EPS. Equities research analysts anticipate that MGIC Investment Corporation will post 2.71 EPS for the current year.

MGIC Investment Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Thursday, November 20th. Investors of record on Thursday, November 6th were given a dividend of $0.15 per share. This represents a $0.60 annualized dividend and a dividend yield of 2.1%. The ex-dividend date was Thursday, November 6th. MGIC Investment’s dividend payout ratio is 19.29%.

Insider Buying and Selling

In related news, EVP Paula C. Maggio sold 20,000 shares of MGIC Investment stock in a transaction dated Friday, October 31st. The stock was sold at an average price of $27.44, for a total value of $548,800.00. Following the sale, the executive vice president directly owned 117,395 shares in the company, valued at approximately $3,221,318.80. The trade was a 14.56% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, COO Salvatore A. Miosi sold 30,000 shares of the business’s stock in a transaction that occurred on Monday, November 3rd. The stock was sold at an average price of $27.52, for a total value of $825,600.00. Following the sale, the chief operating officer owned 159,401 shares of the company’s stock, valued at approximately $4,386,715.52. This trade represents a 15.84% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last three months, insiders have sold 219,203 shares of company stock worth $5,989,909. Insiders own 1.41% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the company. WPG Advisers LLC acquired a new stake in MGIC Investment during the 1st quarter worth $26,000. True Wealth Design LLC boosted its position in MGIC Investment by 262.5% during the second quarter. True Wealth Design LLC now owns 1,004 shares of the insurance provider’s stock worth $28,000 after acquiring an additional 727 shares during the last quarter. Alpine Bank Wealth Management acquired a new position in MGIC Investment during the third quarter worth about $28,000. Newbridge Financial Services Group Inc. purchased a new stake in MGIC Investment during the 3rd quarter valued at about $28,000. Finally, Hantz Financial Services Inc. raised its holdings in MGIC Investment by 3,067.6% in the 2nd quarter. Hantz Financial Services Inc. now owns 1,077 shares of the insurance provider’s stock valued at $30,000 after acquiring an additional 1,043 shares during the last quarter. 95.58% of the stock is owned by institutional investors and hedge funds.

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.