Royal Bank Of Canada Upgrades MGIC Investment (NYSE:MTG) to “Hold”

MGIC Investment (NYSE:MTG) was upgraded by analysts at Royal Bank Of Canada to a “hold” rating in a report issued on Friday,Zacks.com reports.

Other analysts have also issued research reports about the company. UBS Group reduced their target price on MGIC Investment from $29.50 to $28.00 and set a “neutral” rating for the company in a report on Thursday, March 12th. Keefe, Bruyette & Woods lifted their target price 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 reduced their target price 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, Weiss Ratings lowered MGIC Investment from a “buy (a-)” rating to a “buy (b+)” rating in a report on Thursday, February 5th. One analyst has rated the stock with a Buy rating and four have given a Hold rating to the company’s stock. Based on data from MarketBeat.com, the company currently has an average rating of “Hold” and a consensus target price of $28.25.

MGIC Investment Stock Down 0.5%

MGIC Investment stock opened at $26.04 on Friday. The firm has a market cap of $5.51 billion, a price-to-earnings ratio of 8.27, a PEG ratio of 1.79 and a beta of 0.71. The stock has a fifty day simple moving average of $26.78 and a two-hundred day simple moving average of $27.40. MGIC Investment has a 12 month low of $24.77 and a 12 month high of $29.97. The company has a current ratio of 1.14, a quick ratio of 1.14 and a debt-to-equity ratio of 0.13.

MGIC Investment (NYSE:MTG) last posted its earnings results on Wednesday, April 29th. The insurance provider reported $0.76 EPS for the quarter, topping analysts’ consensus estimates of $0.73 by $0.03. The business had revenue of $297.08 million during the quarter, compared to analyst estimates of $303.12 million. MGIC Investment had a return on equity of 14.01% and a net margin of 59.63%.The company’s quarterly revenue was down 3.0% compared to the same quarter last year. During the same quarter last year, the company earned $0.75 EPS. Equities analysts predict that MGIC Investment will post 3.08 EPS for the current fiscal year.

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

Insiders Place Their Bets

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

Hedge Funds Weigh In On MGIC Investment

Several institutional investors and hedge funds have recently bought and sold shares of MTG. Newbridge Financial Services Group Inc. purchased a new position in MGIC Investment during the third quarter valued at $28,000. SBI Securities Co. Ltd. lifted its position in MGIC Investment by 61.1% during the third 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 in the last quarter. V Square Quantitative Management LLC purchased a new position in MGIC Investment during the fourth quarter valued at $36,000. Whittier Trust Co. of Nevada Inc. lifted its position in MGIC Investment by 58.0% during the third quarter. Whittier Trust Co. of Nevada Inc. now owns 1,365 shares of the insurance provider’s stock valued at $38,000 after purchasing an additional 501 shares in the last quarter. Finally, Root Financial Partners LLC purchased a new position in MGIC Investment during the third quarter valued at $38,000. 95.58% of the stock is currently owned by hedge funds and other institutional investors.

Trending Headlines about MGIC Investment

Here are the key news stories impacting MGIC Investment this week:

• Positive Sentiment: Zacks Research raised its FY2026 EPS estimate for MGIC Investment to $3.13 from $3.09, and also nudged Q1 2027 estimates higher to $0.81 from $0.80, suggesting slightly better near-term earnings expectations.
• Positive Sentiment: The firm also increased its Q3 2026 estimate to $0.79 from $0.78 and Q4 2027 estimate to $0.88 from $0.87, reinforcing the view that MGIC Investment’s earnings profile remains resilient.
• Neutral Sentiment: Even after the revisions, Zacks Research’s forecasts remain close to consensus, with full-year current earnings still expected at $3.06 per share, so the changes are incremental rather than a major outlook shift.
• Negative Sentiment: Zacks Research cut its Q2 2027 EPS estimate to $0.82 from $0.86, and trimmed FY2027 earnings to $3.35 from $3.37, which may have added some pressure on the stock.
• Negative Sentiment: The analyst also lowered its Q1 2028 estimate to $0.87 from $0.88, a small reduction that adds to the mixed tone of the overall revisions.

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.