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MGIC approves new $750 million stock buyback program

EditorNatashya Angelica
Published 04/25/2024, 02:36 PM

MILWAUKEE - MGIC Investment Corporation (NYSE: NYSE:MTG) has announced the approval of a new share repurchase program by its board of directors, authorizing the company to buy back up to $750 million of its common stock.

The repurchases can be conducted through various transactions, including privately negotiated deals, open market purchases, or other methods that may comply with Rule 10b5-1 under the Securities Exchange Act of 1934. The program is set to be in effect until December 31, 2026, but the company is not obligated to purchase any specific number of shares and may suspend or discontinue the program at any time.

In addition to the share repurchase program, MGIC's board of directors has also declared a quarterly cash dividend of $0.115 per share. This dividend is scheduled to be paid on May 21, 2024, to shareholders who are on record as of May 9, 2024.

MGIC Investment Corporation plans to hold a conference call and webcast on Thursday, May 2, 2024, to discuss its financial results for the quarter ending March 31, 2024.

MGIC, the primary subsidiary of MGIC Investment Corporation, provides private mortgage insurance services in the United States, promoting homeownership by enabling low-down-payment mortgages.

The company regularly communicates significant information through its corporate website, including corrections to previous disclosures, and encourages investors and interested parties to sign up for automatic email alerts and RSS feeds for new postings.

This news is based on a press release statement from MGIC Investment Corporation.

InvestingPro Insights

As MGIC Investment Corporation (NYSE: MTG) embarks on its new share repurchase program and continues its commitment to shareholder returns through dividends, key financial metrics and management actions provide further insight into the company's financial health and future prospects.

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InvestingPro data underscores the company's robust financial position with a solid market capitalization of $5.46 billion and an attractive P/E ratio of 7.66, reflecting investor confidence in its earnings potential. The company's commitment to shareholder value is evident not only in its share repurchase program but also in its consistent dividend payouts, with a dividend yield of 2.26% as of February 2024.

Two InvestingPro Tips highlight the company's prudent financial management and positive outlook. Firstly, MGIC's management has been actively buying back shares, signaling their confidence in the company's value. Secondly, the company has raised its dividend for five consecutive years, demonstrating a reliable and growing return to shareholders.

For investors seeking more detailed analysis and additional InvestingPro Tips, there are 5 more tips available, which can be explored further by visiting InvestingPro. To enhance your investment research, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.

MGIC's next earnings date is set for May 1, 2024, which will provide investors with further information on the company's performance and strategic direction. In the meantime, the company's solid profitability over the last twelve months and the analysts' predictions of continued profitability this year offer reassurance about its ongoing success.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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