MGIC Investment (NYSE:MTG) Shares Down 5% – Should You Sell?

MGIC Investment Corporation (NYSE:MTG) shares were down 5% during trading on Wednesday. The stock traded as low as $26.80 and last traded at $26.83. 1,022,608 shares traded hands during mid-day trading, a decline of 49% from the average session volume of 2,010,783 shares. The stock had previously closed at $28.25.

Analysts Set New Price Targets

Several equities analysts have commented on the stock. Weiss Ratings raised shares of MGIC Investment from a “buy (b+)” rating to a “buy (a-)” rating in a research note on Wednesday, August 19th. Royal Bank Of Canada upped their target price on MGIC Investment from $28.00 to $32.00 and gave the stock a “sector perform” rating in a research report on Friday, July 31st. BTIG Research began coverage on MGIC Investment in a research note on Tuesday, September 22nd. They issued a “hold” rating on the stock. Zacks Research upgraded shares of MGIC Investment from a “hold” rating to a “strong-buy” rating in a research report on Tuesday, August 25th. Finally, Roth Capital reaffirmed a “buy” rating and issued a $35.00 price objective on shares of MGIC Investment in a research note on Thursday, July 30th. Two investment analysts have rated the stock with a Strong Buy rating, one has issued a Buy rating and five have given a Hold rating to the company’s stock. Based on data from MarketBeat.com, MGIC Investment currently has an average rating of “Moderate Buy” and an average target price of $30.60.

MGIC Investment Stock Performance

The company has a quick ratio of 1.19, a current ratio of 1.19 and a debt-to-equity ratio of 0.13. The firm has a market capitalization of $5.41 billion, a PE ratio of 8.24, a P/E/G ratio of 0.66 and a beta of 0.67. The firm’s 50-day moving average price is $30.22 and its two-hundred day moving average price is $28.08.

MGIC Investment (NYSE:MTG) last posted its quarterly earnings data on Wednesday, July 29th. The insurance provider reported $0.87 earnings per share for the quarter, topping the consensus estimate of $0.76 by $0.11. The firm had revenue of $295.39 million for 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%. The company’s quarterly revenue was down 2.9% compared to the same quarter last year. During the same period in the previous year, the company posted $0.82 EPS. As a group, research analysts predict that MGIC Investment Corporation will post 3.24 earnings per share for the current fiscal year.

MGIC Investment Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Thursday, August 20th. Shareholders of record on Wednesday, August 5th were paid a dividend of $0.17 per share. This is a boost from MGIC Investment’s previous quarterly dividend of $0.15. The ex-dividend date of this dividend was Wednesday, August 5th. This represents a $0.68 annualized dividend and a yield of 2.6%. MGIC Investment’s dividend payout ratio (DPR) is presently 21.25%.

Insider Activity at MGIC Investment

In related news, COO Salvatore A. Miosi sold 30,000 shares of the business’s stock in a transaction that occurred on Tuesday, September 1st. The stock was 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 owned 470,951 shares of the company’s stock, valued at approximately $14,472,324.23. The trade was a 5.99% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Paula C. Maggio sold 20,000 shares of the firm’s stock in a transaction dated Friday, August 7th. The shares were sold at an average price of $30.30, for a total value of $606,000.00. Following the transaction, the executive vice president owned 149,620 shares in the company, valued at approximately $4,533,486. This trade represents a 11.79% 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.

Institutional Investors Weigh In On MGIC Investment

Several hedge funds and other institutional investors have recently modified their holdings of MTG. NewEdge Advisors LLC lifted its stake in shares of MGIC Investment by 126.3% in the second quarter. NewEdge Advisors LLC now owns 319,592 shares of the insurance provider’s stock valued at $9,012,000 after buying an additional 178,381 shares during the period. Norges Bank acquired a new position in MGIC Investment in the 4th quarter valued at approximately $96,248,000. Geode Capital Management LLC lifted its position in shares of MGIC Investment by 2.8% in the 4th quarter. Geode Capital Management LLC now owns 5,371,470 shares of the insurance provider’s stock worth $163,368,000 after acquiring an additional 146,589 shares during the period. WINTON GROUP Ltd grew its holdings in shares of MGIC Investment by 317.3% during the 2nd quarter. WINTON GROUP Ltd now owns 189,475 shares of the insurance provider’s stock worth $5,343,000 after purchasing an additional 144,073 shares in the last quarter. Finally, Hsbc Holdings PLC increased its position in shares of MGIC Investment by 24.5% during the fourth quarter. Hsbc Holdings PLC now owns 207,412 shares of the insurance provider’s stock valued at $6,089,000 after purchasing an additional 40,751 shares during the period. Institutional investors and hedge funds own 95.58% of the company’s stock.

About MGIC Investment

MGIC Investment Corporation is a holding company whose principal subsidiary, Mortgage Guaranty Insurance Corporation (MGIC), provides private mortgage insurance in the United States. Its insurance helps lenders manage credit risk on residential mortgage loans, particularly loans made to borrowers who provide down payments below traditional thresholds.

MGIC’s products are primarily designed for lenders and other mortgage-finance participants, including primary mortgage insurance covering individual residential loans.