MGIC Investment (NYSE:MTG) to Repurchase $750.00 million in Outstanding Shares

MGIC Investment (NYSE:MTG) announced that its Board of Directors has approved a stock buyback program on Thursday, April 23rd, RTT News reports. The company plans to buyback $750.00 million in outstanding shares. This buyback authorization permits the insurance provider to buy up to 12.4% of its shares through open market purchases. Shares buyback programs are often a sign that the company’s board of directors believes its shares are undervalued.

MGIC Investment Price Performance

MTG stock traded up $0.62 on Thursday, reaching $28.79. The company had a trading volume of 1,640,522 shares, compared to its average volume of 1,574,148. MGIC Investment has a 1 year low of $24.00 and a 1 year high of $29.97. The company has a debt-to-equity ratio of 0.13, a quick ratio of 1.52 and a current ratio of 1.52. The company’s fifty day moving average is $26.68 and its 200 day moving average is $27.43. The company has a market cap of $6.19 billion, a P/E ratio of 9.17, a PEG ratio of 2.24 and a beta of 0.79.

MGIC Investment (NYSE:MTG) last posted its earnings results on Monday, February 2nd. The insurance provider reported $0.75 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.73 by $0.02. MGIC Investment had a return on equity of 14.33% and a net margin of 60.84%.During the same period last year, the company posted $0.72 EPS. The company’s quarterly revenue was down .9% compared to the same quarter last year. On average, research analysts forecast that MGIC Investment will post 3.08 earnings per share for the current year.

MGIC Investment Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Friday, March 6th. Investors of record on Tuesday, February 17th were paid a $0.15 dividend. The ex-dividend date of this dividend was Tuesday, February 17th. This represents a $0.60 dividend on an annualized basis and a yield of 2.1%. MGIC Investment’s dividend payout ratio is presently 19.11%.

Analyst Upgrades and Downgrades

Several brokerages have recently commented on MTG. Barclays boosted their price target on MGIC Investment from $28.00 to $29.00 and gave the stock an “equal weight” rating in a research note on Monday, April 6th. Weiss Ratings lowered MGIC Investment from a “buy (a-)” rating to a “buy (b+)” rating in a research note on Thursday, February 5th. UBS Group decreased their price target on MGIC Investment from $29.50 to $28.00 and set a “neutral” rating on the stock in a research note on Thursday, March 12th. Finally, Keefe, Bruyette & Woods boosted their price target on MGIC Investment from $28.00 to $29.00 and gave the stock a “market perform” rating in a research note on Friday, April 10th. One analyst has rated the stock with a Buy rating and four have given a Hold rating to the company. According to data from MarketBeat, the stock presently has an average rating of “Hold” and a consensus target price of $28.50.

Insider Activity at MGIC Investment

In related news, CEO Timothy J. Mattke sold 139,202 shares of the company’s stock in a transaction that occurred 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 sale, the chief executive officer owned 1,118,005 shares of the company’s stock, valued at approximately $29,615,952.45. This represents a 11.07% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, COO Salvatore A. Miosi sold 10,931 shares of the company’s stock in a transaction that occurred on Wednesday, April 1st. The shares were sold at an average price of $26.25, for a total value of $286,938.75. Following the completion of the sale, the chief operating officer directly owned 590,951 shares in the company, valued at approximately $15,512,463.75. The trade was a 1.82% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders have sold 200,133 shares of company stock valued at $5,342,700. 1.34% of the stock is owned by corporate insiders.

MGIC Investment Company Profile

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.