MGIC Investment (NYSE:MTG) Reaches New 52-Week High – Should You Buy?

MGIC Investment Co. (NYSE:MTG)’s stock price reached a new 52-week high on Monday . The stock traded as high as $26.56 and last traded at $26.51, with a volume of 752002 shares traded. The stock had previously closed at $25.50.

Wall Street Analyst Weigh In

A number of research analysts have issued reports on the stock. BTIG Research raised their price target on shares of MGIC Investment from $22.00 to $25.00 and gave the stock a “buy” rating in a report on Monday, August 5th. Royal Bank of Canada reduced their target price on MGIC Investment from $28.00 to $27.00 and set a “sector perform” rating for the company in a research note on Wednesday, November 6th. Barclays lifted their price target on MGIC Investment from $23.00 to $24.00 and gave the stock an “equal weight” rating in a research report on Tuesday, October 8th. Finally, Roth Mkm increased their price objective on MGIC Investment from $24.00 to $30.00 and gave the company a “buy” rating in a report on Friday, August 2nd. Three investment analysts have rated the stock with a hold rating and three have issued a buy rating to the company’s stock. Based on data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average price target of $25.50.

MGIC Investment Stock Performance

The firm’s fifty day simple moving average is $25.24 and its 200 day simple moving average is $23.64. The company has a market capitalization of $6.62 billion, a PE ratio of 9.20, a price-to-earnings-growth ratio of 1.91 and a beta of 1.28. The company has a debt-to-equity ratio of 0.12, a current ratio of 1.25 and a quick ratio of 1.25.

MGIC Investment (NYSE:MTG) last posted its earnings results on Monday, November 4th. The insurance provider reported $0.77 EPS for the quarter, topping the consensus estimate of $0.66 by $0.11. MGIC Investment had a return on equity of 14.99% and a net margin of 64.09%. The firm had revenue of $306.65 million for the quarter, compared to analyst estimates of $306.03 million. During the same period last year, the company earned $0.64 earnings per share. MGIC Investment’s revenue for the quarter was up 3.4% compared to the same quarter last year. On average, research analysts predict that MGIC Investment Co. will post 2.81 EPS for the current year.

MGIC Investment Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Thursday, November 21st. Investors of record on Thursday, November 7th were issued a dividend of $0.13 per share. This represents a $0.52 dividend on an annualized basis and a yield of 1.99%. The ex-dividend date was Thursday, November 7th. MGIC Investment’s dividend payout ratio (DPR) is presently 18.31%.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the company. Hara Capital LLC purchased a new position in shares of MGIC Investment during the 3rd quarter valued at approximately $25,000. Versant Capital Management Inc lifted its holdings in MGIC Investment by 482.7% during the second quarter. Versant Capital Management Inc now owns 1,142 shares of the insurance provider’s stock valued at $25,000 after purchasing an additional 946 shares in the last quarter. V Square Quantitative Management LLC acquired a new stake in shares of MGIC Investment in the third quarter valued at about $33,000. Brooklyn Investment Group purchased a new stake in shares of MGIC Investment during the third quarter worth about $69,000. Finally, GAMMA Investing LLC raised its position in shares of MGIC Investment by 76.2% during the 2nd quarter. GAMMA Investing LLC now owns 3,071 shares of the insurance provider’s stock worth $66,000 after purchasing an additional 1,328 shares during the last quarter. Hedge funds and other institutional investors own 95.58% of the company’s stock.

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.