Mgic investment corp president Salvatore Miosi sells $781,110 in stock

MGIC Investment Corp's President and COO, Salvatore A. Miosi, sold 30,000 shares at an average price of $26.037 on June 5, 2025, totaling approximately $781,110, under a pre-arranged 10b5-1 trading plan as the stock trades near its 52-week high. This follows a Q1 2025 earnings report where MTG exceeded EPS expectations at $0.75 versus $0.69 anticipated, though slightly missed revenue forecasts at $306.23 million against $306.52 million expected; the company continues to focus on share repurchases, buying back 9.2 million shares for $224 million in Q1.

Analysis

MGIC Investment Corp. (MTG) recently saw its President and COO, Salvatore A. Miosi, execute a sale of 30,000 shares on June 5, 2025, at a weighted average price of $26.037 per share, totaling approximately $781,110. This transaction was conducted under a pre-arranged Rule 10b5-1 trading plan adopted on March 6, 2025, and occurred as MTG's stock traded near its 52-week high of $26.92; Miosi retains a substantial holding of 309,401.361 shares directly and an additional 384,844 shares indirectly through a family trust. The company's recent Q1 2025 earnings report showcased an earnings per share of $0.75, surpassing the $0.69 forecast, although revenue of $306.23 million narrowly missed the $306.52 million expectation. MTG demonstrated operational efficiency with operating expenses declining to $53 million from $61 million year-over-year and reported a net income of $186 million. The company maintains a significant $294 billion in insurance in force and wrote $10 billion in new insurance, supported by strong underwriting standards. Furthermore, MTG is actively returning capital to shareholders, having repurchased 9.2 million shares for $224 million in the first quarter, and currently trades at a P/E ratio of 8.6x, with an external analysis indicating a "GREAT" overall financial health rating and suggesting the stock may be slightly undervalued, while analysts have not issued recent rating changes.

Key Decisions for Investors

• Investors should note the COO's share sale was executed under a pre-arranged 10b5-1 plan, which can mitigate concerns typically associated with insider selling, especially given his substantial remaining stake.
• The strong Q1 2025 EPS beat, coupled with reduced operating expenses and significant share repurchases, signals robust operational health and a commitment to shareholder returns, despite a marginal revenue miss.
• Given MTG's attractive P/E ratio of 8.6x, its "slightly undervalued" assessment according to InvestingPro analysis, and continued strong underwriting, investors might consider the stock's current valuation favorable, while monitoring revenue growth trajectory and new insurance written in subsequent quarters.