MGIC Investment Announces Additional $750 Million Share Repurchase Program and Quarterly Dividend of $0.115 Per Share

Rhea-AI Summary

MGIC Investment (MTG) has approved a $750 million share repurchase program, allowing the company to buy back its common stock. They also declared a quarterly dividend of $0.115 per share. The company plans to repurchase shares through various methods until December 31, 2026. Shareholders of record as of May 9, 2024, will receive the dividend on May 21, 2024.

Insights

Financial Analyst

MGIC Investment Corporation's recent announcement represents an assertive move in capital allocation strategy. The approval of a $750 million share repurchase program can typically be seen as a signal of management's confidence in the company's valuation and future performance. From a financial perspective, this action should ostensibly increase shareholder value by reducing the number of outstanding shares, thus potentially enhancing earnings per share (EPS) and the company's stock price in the long term. However, investors should monitor the company's ability to generate enough free cash flow to support this repurchase without compromising its financial health or growth investments.

Dividend Analyst

The declaration of a quarterly cash dividend of $0.115 per share underscores MGIC Investment Corporation's commitment to delivering shareholder returns and may reflect a stable financial position. While not a drastic increase, regular dividends are often interpreted positively by the market as they provide a direct return on investment. Shareholders should consider the dividend yield in conjunction with the company's payout ratio and historical dividend growth when assessing the sustainability of these payments.

MILWAUKEE, April 25, 2024 /PRNewswire/ -- MGIC Investment Corporation (NYSE: MTG) announced its board of directors has approved an additional share repurchase program with authorization to purchase up to $750 million of its common stock.

The company is authorized to repurchase shares of its common stock from time to time through privately negotiated, open market or other transactions (including through the use of trading plans intended to qualify under Rule 10b5-1 under the Securities Exchange Act of 1934, as amended) at any time prior to December 31, 2026. The share repurchase program may be suspended or discontinued at any time and does not require the company to acquire any amount of common stock. 

The company also announced that its board of directors declared a quarterly cash dividend of $0.115 per share payable on May 21, 2024, to shareholders of record as of May 9, 2024. 

As previously announced, the company will hold a conference call/webcast on Thursday, May 2, 2024, to discuss the results for the quarter ended March 31, 2024.

About MGIC

Mortgage Guaranty Insurance Corporation ("MGIC") (www.mgic.com), the principal subsidiary of MGIC Investment Corporation, serves lenders throughout the United States, helping families achieve homeownership sooner by making affordable low-down-payment mortgages a reality through the use of private mortgage insurance.

From time-to-time MGIC Investment Corporation releases important information via postings on its corporate website, and via postings on MGIC's website, and it intends to continue to do so in the future. Such postings include corrections of previous disclosures and may be made without any other disclosure. Investors and other interested parties are encouraged to enroll to receive automatic email alerts and Really Simple Syndication (RSS) feeds regarding new postings. Enrollment information for MGIC Investment Corporation alerts can be found at https://mtg.mgic.com/shareholder-services/email-alerts. For information about our underwriting and rates, see https://www.mgic.com/underwriting.

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SOURCE MGIC Investment Corporation

FAQ

What did MGIC Investment (MTG) announce regarding share repurchase?

MGIC Investment announced an additional share repurchase program of up to $750 million of its common stock.

How will MGIC Investment (MTG) repurchase shares?

MGIC Investment can repurchase shares through privately negotiated, open market, or other transactions until December 31, 2026.

When will the quarterly dividend be paid to shareholders of MGIC Investment (MTG)?

The quarterly cash dividend of $0.115 per share will be paid on May 21, 2024, to shareholders of record as of May 9, 2024.

When will MGIC Investment (MTG) discuss its quarterly results?

MGIC Investment will hold a conference call/webcast on May 2, 2024, to discuss the results for the quarter ended March 31, 2024.