MGIC Investment Surpasses Analyst Target Price of $27.33

MGIC Investment Corp. (MTG) shares have crossed above the average analyst 12-month target price of $27.33, reaching $27.52/share. There are 6 different analyst targets contributing to the average, ranging from $26 to $30. The average rating is 2.86, with 1 strong buy, 5 hold, and 1 sell rating.

MGIC Investment Corp. (MTG) shares have recently crossed above the average analyst 12-month target price of $27.33, reaching $27.52 per share. This milestone is notable as it indicates a positive outlook from financial analysts on the company's future performance. The average target price is derived from six different analyst estimates, ranging from $26 to $30 per share. The average rating among analysts is 2.86, with one strong buy, five hold, and one sell rating [1].

MGIC Investment, through its subsidiaries, provides private mortgage insurance, other mortgage credit risk management solutions, and ancillary services in the United States, the District of Columbia, Puerto Rico, and Guam. The company has recently reported earnings per share (EPS) of $0.82 for the second quarter of 2025, exceeding analyst expectations by $0.12. This strong performance has been a significant driver behind the upward movement of its stock price [2].

The company's board has also approved a $750 million share buyback plan, indicating a belief that the stock is currently undervalued. Additionally, MGIC Investment has recently announced a quarterly dividend increase to $0.15 per share, up from $0.13. This represents a $0.60 dividend on an annualized basis and a dividend yield of 2.2% [1].

Institutional investors have also shown interest in MGIC Investment. Hedge funds and other institutional investors have been acquiring shares of the company, with notable increases in positions held by True Wealth Design LLC, Hantz Financial Services Inc., Cullen Frost Bankers Inc., and Mitsubishi UFJ Asset Management Co. Ltd. [1].

Despite the positive outlook, insider activity has also been observed. EVP Paula C. Maggio and COO Salvatore A. Miosi sold shares of the company's stock recently, with Maggio selling 20,000 shares and Miosi selling 30,000 shares. These transactions, however, do not significantly impact the company's overall ownership structure [1].

In conclusion, MGIC Investment Corp. (MTG) shares have surpassed the average analyst target price, reflecting a positive outlook on the company's future performance. The recent earnings report, dividend increase, and share buyback plan have contributed to the upward movement in the stock price. However, investors should remain vigilant and consider all available information when making investment decisions.

References:
[1] https://www.marketbeat.com/instant-alerts/fy2025-eps-forecast-for-mgic-investment-2025-08-05/
[2] https://simplywall.st/stocks/us/diversified-financials/nyse-mtg/mgic-investment