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NEW YORK - MGIC Investment Corporation (NYSE:MTG), a $5.96 billion market cap mortgage insurer, has announced the approval of a new share repurchase program by its board of directors, with plans to buy back up to $750 million of its common stock. According to InvestingPro analysis, the company appears undervalued based on its Fair Value estimates, with management consistently demonstrating shareholder-friendly policies through aggressive share buybacks. The company, a leading provider of private mortgage insurance, is now authorized to repurchase shares through various transactions at its discretion until December 31, 2027. The program does not obligate MGIC to purchase any specific number of shares and can be halted or terminated at any time.
In addition to the repurchase program, MGIC’s board has also declared a quarterly cash dividend of $0.13 per share, representing a 2.15% yield. This dividend is payable on May 21, 2025, to shareholders on record as of May 8, 2025. The company has maintained a strong dividend growth track record, having raised its dividend for six consecutive years.
The company is scheduled to hold a conference call and webcast on Thursday, May 1, 2025, to discuss financial results for the quarter ending March 31, 2025. InvestingPro data shows MGIC maintains robust financial health with a current ratio of 3.34x and an impressive 15% return on equity. Investors seeking detailed analysis can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.
MGIC Investment Corporation is known for its subsidiary, Mortgage Guaranty Insurance Corporation (MGIC), which provides private mortgage insurance across the United States. This insurance helps families access homeownership by enabling them to obtain mortgages with lower down payments. Trading at an attractive P/E ratio of 8.37x, the company has demonstrated strong operational efficiency with an 85.75% gross profit margin.
The company regularly communicates significant information through its corporate website and encourages investors and interested parties to sign up for email alerts and RSS feeds to stay updated on new postings, which may include corrections to previous disclosures.
This news is based on a press release statement from MGIC Investment Corporation.
In other recent news, MGIC Investment Corporation reported fourth-quarter 2024 earnings, with an adjusted earnings per share of $0.72, surpassing the consensus estimate of $0.66. This outperformance was largely due to a favorable $54 million adjustment in loss reserves. Despite this positive earnings report, Compass Point downgraded MGIC’s stock from Buy to Neutral, although it raised the price target to $27.00 from $24.00. The analyst cited minimal growth in MGIC’s insurance in force, which increased by only 0.9% year-over-year, as a factor in the downgrade. This trend aligns with industry-wide challenges due to higher interest rates impacting new insurance written volumes.
Additionally, MGIC paid a $400 million dividend to its holding company, enhancing its liquidity by $235 million to a total of $1,076 million. Meanwhile, MGIC’s Director Timothy A. Holt announced he will not seek re-election at the upcoming Annual Meeting of Shareholders in April 2025. Holt’s departure is not due to any disagreements with the company’s operations or policies. The company has not disclosed any potential successors or changes to the board’s structure following Holt’s exit. These developments reflect ongoing changes within MGIC Investment Corporation as it navigates the current mortgage market landscape.
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