Wall Street analysts’ outlook for MGIC Investment Corporation (MTG)

With 1.75 million shares changed hands, the volume of the stock remained lighter than its average volume of 2.84 million shares. During the session, the Insurance – Specialty company that operates in wider Financial sector, reached to the highest price of $15.00 whereas the lowest price it dropped to was $14.73. The 52-week range on MTG shows that it touched its highest point at $15.76 and its lowest point at $11.38 during that stretch. It currently has a 1-year price target of $16.88. With its current market cap of 4.34 billion, MTG has annualized dividend of $0.40 while the current yield stands at 2.68%. Beta for the stock currently stands at 1.33.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of MTG was down-trending over the past week, with a drop of -3.43%, but this was up by 5.90% over a month. Three-month performance surged to 8.05% while six-month performance rose 10.78%. The stock gained 13.48% in the past year, while it has gained 14.62% so far this year. A look at the trailing 12-month EPS for MTG yields 2.78 with Next year EPS estimates of 2.23. For the next quarter, that number is 0.53. This implies an EPS growth rate of 51.00% for this year and 5.14% for next year. EPS is expected to grow by 3.09% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 16.80%.

Float and Shares Shorts:

At present, 290.99 million MTG shares are outstanding with a float of 285.32 million shares on hand for trading. On May 14, 2023, short shares totaled 10.37 million, which was 3.62% higher than short shares on Apr 13, 2023. In addition to Mr. Timothy James Mattke as the firm’s CEO & Director, Mr. Salvatore Antonino Miosi serves as its Pres & COO.

Institutional Ownership:

Through their ownership of 99.01% of MTG’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 58.82% of MTG, in contrast to 37.30% held by mutual funds. Shares owned by individuals account for 11.50%. As the largest shareholder in MTG with 14.21% of the stake, The Vanguard Group, Inc. holds 41,259,563 shares worth 41,259,563. A second-largest stockholder of MTG, BlackRock Fund Advisors, holds 24,717,906 shares, controlling over 8.51% of the firm’s shares. First Trust Advisors LP is the third largest shareholder in MTG, holding 14,943,450 shares or 5.15% stake. With a 4.06% stake in MTG, the First Trust Rising Dividend Achie is the largest stakeholder. A total of 11,785,313 shares are owned by the mutual fund manager. The iShares Core S&P Mid Cap ETF, which owns about 3.15% of MTG stock, is the second-largest Mutual Fund holder. It holds 9,156,648 shares valued at 136.16 million. Vanguard Total Stock Market ETF holds 3.10% of the stake in MTG, owning 8,994,233 shares worth 133.74 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for MTG since 0 analysts follow the stock currently. In the same way, a target price assigned to a stock can also reveal much about its potential. With MTG analysts setting a high price target of $18.00 and a low target of $14.00, the average target price over the next 12 months is $16.88. Based on these targets, MTG could surge 20.81% to reach the target high and fall by -6.04% to reach the target low. Reaching the average price target will result in a growth of 13.29% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy.

Summary of Insider Activity:

Insiders traded MTG stock several times over the past three months with 13 Buys and 28 Sells. In these transactions, 9,483 shares were bought while 639,585 shares were sold. The number of buy transactions has increased to 73 while that of sell transactions has risen to 36 over the past year. The total number of shares bought during that period was 172,624 while 763,165 shares were sold.

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