MGIC Investment (NYSE:MTG) Stock Price Crosses Above 50 Day Moving Average – Time to Sell?

MGIC Investment Corporation (NYSE:MTG)’s stock price crossed above its 50-day moving average during trading on Wednesday. The stock has a 50-day moving average of $28.90 and traded as high as $29.25. MGIC Investment shares last traded at $29.0350, with a volume of 2,415,801 shares trading hands.

Wall Street Analyst Weigh In

Several brokerages have recently weighed in on MTG. Royal Bank Of Canada increased their price target on MGIC Investment from $28.00 to $32.00 and gave the stock a “sector perform” rating in a report on Friday, July 31st. Weiss Ratings upgraded MGIC Investment from a “buy (b+)” rating to a “buy (a-)” rating in a report on Wednesday, August 19th. BTIG Research initiated coverage on MGIC Investment in a report on Tuesday, September 22nd. They set a “hold” rating for the company. Zacks Research downgraded MGIC Investment from a “strong-buy” rating to a “hold” rating in a research report on Monday, October 19th. Finally, Roth Capital reiterated a “buy” rating and issued a $35.00 target price on shares of MGIC Investment in a research note on Thursday, July 30th. One equities research analyst has rated the stock with a Strong Buy rating, one has issued a Buy rating and six have assigned a Hold rating to the company. Based on data from MarketBeat.com, the company currently has a consensus rating of “Hold” and an average target price of $30.80.

MGIC Investment Stock Up 1.4%

The business’s fifty day moving average price is $28.90 and its two-hundred day moving average price is $27.79. The company has a debt-to-equity ratio of 0.13, a quick ratio of 1.19 and a current ratio of 1.19. The firm has a market capitalization of $5.96 billion, a P/E ratio of 9.07, a PEG ratio of 1.01 and a beta of 0.64.

MGIC Investment (NYSE:MTG) last released its quarterly earnings results on Wednesday, November 4th. The insurance provider reported $0.85 EPS for the quarter, beating analysts’ consensus estimates of $0.81 by $0.04. The company had revenue of $299.08 million during the quarter, compared to analysts’ expectations of $298.66 million. MGIC Investment had a return on equity of 13.90% and a net margin of 59.20%. The firm’s revenue was down 1.8% compared to the same quarter last year. During the same period last year, the business posted $0.83 earnings per share. Equities analysts expect that MGIC Investment Corporation will post 3.22 earnings per share for the current fiscal year.

MGIC Investment Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Monday, November 23rd. Investors of record on Thursday, November 12th will be given a $0.17 dividend. This represents a $0.68 annualized dividend and a dividend yield of 2.3%. The ex-dividend date of this dividend is Thursday, November 12th. MGIC Investment’s dividend payout ratio (DPR) is presently 21.25%.

Insiders Place Their Bets

In other news, EVP Paula Maggio sold 20,000 shares of the business’s stock in a transaction on Friday, August 7th. The shares were sold at an average price of $30.30, for a total transaction of $606,000.00. Following the sale, the executive vice president directly owned 149,620 shares of the company’s stock, valued at $4,533,486. The trade was a 11.79% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Timothy Mattke sold 137,114 shares of MGIC Investment stock in a transaction dated Thursday, October 1st. The stock was sold at an average price of $26.23, for a total value of $3,596,500.22. Following the sale, the chief executive officer directly owned 843,778 shares of the company’s stock, valued at approximately $22,132,296.94. This represents a 13.98% 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. Over the last quarter, insiders sold 217,114 shares of company stock valued at $5,906,200. Insiders own 1.34% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. BlackRock Inc. purchased a new stake in shares of MGIC Investment during the second quarter worth about $618,467,000. Caisse de depot et placement du Quebec purchased a new position in MGIC Investment in the second quarter worth approximately $98,074,000. NewEdge Wealth LLC acquired a new stake in shares of MGIC Investment during the 2nd quarter worth about $71,375,000. Bank of New York Mellon Corp purchased a new stake in shares of MGIC Investment in the 2nd quarter valued at approximately $51,059,000. Finally, Bank of America Corp DE purchased a new stake in MGIC Investment in the second quarter valued at approximately $44,658,000. Hedge funds and other institutional investors own 95.58% of the company’s stock.

MGIC Investment Company Profile

MGIC Investment Corporation (NYSE:MTG) is a holding company whose principal subsidiary is Mortgage Guaranty Insurance Corporation (MGIC), a provider of private mortgage insurance in the United States. MGIC’s insurance helps protect mortgage lenders and investors against losses when borrowers default, enabling qualified homebuyers to obtain mortgages with smaller down payments.

MGIC primarily offers primary mortgage insurance for residential loans, working with mortgage lenders, banks and other housing-finance institutions.