MGIC Investment (NYSE:MTG) Stock Price Down 5% – Time to Sell?
by Danessa Lincoln · The Markets DailyMGIC Investment Corporation (NYSE:MTG – Get Free Report)’s stock price traded down 5% during mid-day trading on Wednesday. The stock traded as low as $26.80 and last traded at $26.83. Approximately 1,022,608 shares traded hands during trading, a decline of 49% from the average daily volume of 2,010,783 shares. The stock had previously closed at $28.25.
Wall Street Analysts Forecast Growth
Several equities research analysts have weighed in on MTG shares. Zacks Research upgraded MGIC Investment from a “hold” rating to a “strong-buy” rating in a report on Tuesday, August 25th. Roth Capital restated a “buy” rating and set a $35.00 price target on shares of MGIC Investment in a research note on Thursday, July 30th. Weiss Ratings upgraded MGIC Investment from a “buy (b+)” rating to a “buy (a-)” rating in a research note on Wednesday, August 19th. Keefe, Bruyette & Woods increased their price target on MGIC Investment from $29.00 to $30.00 and gave the stock a “market perform” rating in a research report on Friday, July 31st. Finally, BTIG Research began coverage on shares of MGIC Investment in a report on Tuesday, September 22nd. They set a “hold” rating on the stock. Two research analysts have rated the stock with a Strong Buy rating, one has assigned a Buy rating and five have issued a Hold rating to the stock. According to MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average target price of $30.60.
Check Out Our Latest Stock Report on MGIC Investment
MGIC Investment Stock Performance
The firm has a 50-day simple moving average of $30.34 and a two-hundred day simple moving average of $28.08. The company has a market capitalization of $5.43 billion, a price-to-earnings ratio of 8.26, a P/E/G ratio of 0.72 and a beta of 0.65. The company has a debt-to-equity ratio of 0.13, a quick ratio of 1.19 and a current ratio of 1.19.
MGIC Investment (NYSE:MTG – Get Free Report) last released its earnings results on Wednesday, July 29th. The insurance provider reported $0.87 EPS for the quarter, topping the consensus estimate of $0.76 by $0.11. The firm had revenue of $295.39 million during the quarter, compared to analysts’ expectations of $297.54 million. MGIC Investment had a return on equity of 13.90% and a net margin of 59.20%.MGIC Investment’s revenue for the quarter was down 2.9% on a year-over-year basis. During the same period in the previous year, the firm posted $0.82 EPS. On average, sell-side analysts anticipate that MGIC Investment Corporation will post 3.24 EPS for the current fiscal year.
MGIC Investment Increases Dividend
The company also recently announced a quarterly dividend, which was paid on Thursday, August 20th. Investors of record on Wednesday, August 5th were issued a $0.17 dividend. This represents a $0.68 annualized dividend and a yield of 2.6%. This is a positive change from MGIC Investment’s previous quarterly dividend of $0.15. The ex-dividend date of this dividend was Wednesday, August 5th. MGIC Investment’s dividend payout ratio is 21.25%.
Insider Buying and Selling
In other MGIC Investment news, EVP Paula C. Maggio sold 20,000 shares of the stock in a transaction that occurred on Friday, August 7th. The shares were sold at an average price of $30.30, for a total value of $606,000.00. Following the sale, the executive vice president directly owned 149,620 shares of the company’s stock, valued at approximately $4,533,486. This represents a 11.79% decrease in their position. The sale was disclosed in a document filed 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 30,000 shares of MGIC Investment stock in a transaction on Tuesday, September 1st. The stock was sold at an average price of $30.73, for a total transaction of $921,900.00. Following the sale, the chief operating officer directly owned 470,951 shares of the company’s stock, valued at approximately $14,472,324.23. This trade represents a 5.99% 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. 1.34% of the stock is owned by insiders.
Hedge Funds Weigh In On MGIC Investment
A number of institutional investors and hedge funds have recently modified their holdings of MTG. Baird Financial Group Inc. lifted its holdings in MGIC Investment by 3.1% during the 2nd quarter. Baird Financial Group Inc. now owns 13,092 shares of the insurance provider’s stock worth $369,000 after buying an additional 392 shares during the last quarter. Compound Planning Inc. increased its holdings in shares of MGIC Investment by 4.3% in the 1st quarter. Compound Planning Inc. now owns 10,392 shares of the insurance provider’s stock valued at $273,000 after acquiring an additional 433 shares during the last quarter. Oregon Public Employees Retirement Fund increased its holdings in shares of MGIC Investment by 1.1% in the 1st quarter. Oregon Public Employees Retirement Fund now owns 44,972 shares of the insurance provider’s stock valued at $1,181,000 after acquiring an additional 481 shares during the last quarter. Lido Advisors LLC raised its position in shares of MGIC Investment by 2.4% during the 1st quarter. Lido Advisors LLC now owns 24,373 shares of the insurance provider’s stock worth $640,000 after acquiring an additional 574 shares in the last quarter. Finally, PNC Financial Services Group Inc. raised its position in shares of MGIC Investment by 6.4% during the 1st quarter. PNC Financial Services Group Inc. now owns 10,101 shares of the insurance provider’s stock worth $265,000 after acquiring an additional 606 shares in the last quarter. 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.