MGIC Investment Co. (NYSE:MTG) Increases Dividend to $0.13 Per Share

MGIC Investment Co. (NYSE:MTG) declared a quarterly dividend on Friday, July 26th, Wall Street Journal reports. Stockholders of record on Thursday, August 8th will be given a dividend of 0.13 per share by the insurance provider on Thursday, August 22nd. This represents a $0.52 annualized dividend and a dividend yield of 2.09%. The ex-dividend date of this dividend is Thursday, August 8th. This is an increase from MGIC Investment’s previous quarterly dividend of $0.12.

MGIC Investment has raised its dividend by an average of 21.5% per year over the last three years. MGIC Investment has a payout ratio of 17.4% meaning its dividend is sufficiently covered by earnings. Equities research analysts expect MGIC Investment to earn $2.60 per share next year, which means the company should continue to be able to cover its $0.46 annual dividend with an expected future payout ratio of 17.7%.

MGIC Investment Stock Performance

MTG traded up $0.45 on Friday, hitting $24.88. The company’s stock had a trading volume of 1,834,503 shares, compared to its average volume of 1,881,334. MGIC Investment has a 12 month low of $16.30 and a 12 month high of $24.89. The firm has a market cap of $6.63 billion, a P/E ratio of 9.40, a price-to-earnings-growth ratio of 7.87 and a beta of 1.28. The company has a quick ratio of 1.05, a current ratio of 1.05 and a debt-to-equity ratio of 0.13. The company’s 50 day simple moving average is $21.57 and its 200-day simple moving average is $20.68.

MGIC Investment (NYSE:MTG) last posted its quarterly earnings results on Wednesday, May 1st. The insurance provider reported $0.65 EPS for the quarter, topping analysts’ consensus estimates of $0.60 by $0.05. MGIC Investment had a return on equity of 15.00% and a net margin of 62.85%. The firm had revenue of $294.40 million during the quarter, compared to analyst estimates of $301.62 million. During the same period last year, the company earned $0.54 earnings per share. The business’s revenue for the quarter was up 3.7% on a year-over-year basis. Analysts forecast that MGIC Investment will post 2.52 EPS for the current year.

Analyst Ratings Changes

A number of brokerages have recently issued reports on MTG. Keefe, Bruyette & Woods raised shares of MGIC Investment from a “market perform” rating to an “outperform” rating and increased their price target for the stock from $24.00 to $25.00 in a report on Monday, June 3rd. Barclays raised their price target on shares of MGIC Investment from $20.00 to $21.00 and gave the company an “equal weight” rating in a report on Tuesday, July 9th. Finally, UBS Group upped their price target on shares of MGIC Investment from $21.00 to $22.00 and gave the stock a “neutral” rating in a report on Wednesday, May 22nd. Four analysts have rated the stock with a hold rating and two have issued a buy rating to the company’s stock. Based on data from MarketBeat, MGIC Investment has an average rating of “Hold” and a consensus target price of $22.17.

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.