836,954 Shares in MGIC Investment Corporation $MTG Bought by Arbejdsmarkedets Tillaegspension

Key Points

• Arbejdsmarkedets Tillaegspension opened a new position in MGIC Investment, buying 836,954 shares worth about $24.5 million in the fourth quarter. The stake makes MTG its 24th-largest holding and equals about 0.37% of MGIC’s outstanding shares.
• Recent analyst sentiment on MGIC Investment is mostly cautious, with UBS and Barclays trimming price targets to $28 and the overall consensus rating sitting at Hold with a $28.25 target price.
• The company reported solid recent results and shareholder returns: Q1 earnings of $0.76 per share beat estimates, MGIC declared a $0.15 quarterly dividend, and its board approved a $750 million share repurchase program.

Arbejdsmarkedets Tillaegspension acquired a new position in shares of MGIC Investment Corporation (NYSE:MTG - Free Report) in the fourth quarter, according to its most recent 13F filing with the SEC. The institutional investor acquired 836,954 shares of the insurance provider's stock, valued at approximately $24,456,000. MGIC Investment comprises 0.6% of Arbejdsmarkedets Tillaegspension's investment portfolio, making the stock its 24th biggest position. Arbejdsmarkedets Tillaegspension owned approximately 0.37% of MGIC Investment as of its most recent SEC filing.

A number of other hedge funds have also recently made changes to their positions in MTG. Newbridge Financial Services Group Inc. purchased a new stake in shares of MGIC Investment during the 3rd quarter worth $28,000. SBI Securities Co. Ltd. lifted its stake in shares of MGIC Investment by 61.1% during the 3rd quarter. SBI Securities Co. Ltd. now owns 1,041 shares of the insurance provider's stock worth $30,000 after purchasing an additional 395 shares during the last quarter. V Square Quantitative Management LLC purchased a new stake in shares of MGIC Investment during the 4th quarter worth $36,000. Root Financial Partners LLC purchased a new stake in shares of MGIC Investment during the 3rd quarter worth $38,000. Finally, Whittier Trust Co. of Nevada Inc. increased its position in MGIC Investment by 58.0% during the 3rd quarter. Whittier Trust Co. of Nevada Inc. now owns 1,365 shares of the insurance provider's stock valued at $38,000 after buying an additional 501 shares in the last quarter. 95.58% of the stock is currently owned by hedge funds and other institutional investors.

Analyst Ratings Changes

MTG has been the topic of several recent analyst reports. UBS Group reduced their target price on MGIC Investment from $29.50 to $28.00 and set a "neutral" rating on the stock in a research report on Thursday, March 12th. Weiss Ratings lowered MGIC Investment from a "buy (a-)" rating to a "buy (b+)" rating in a research report on Thursday, February 5th. Barclays reduced their target price on MGIC Investment from $29.00 to $28.00 and set an "equal weight" rating on the stock in a research report on Friday, May 1st. Finally, Keefe, Bruyette & Woods upped their target price on MGIC Investment from $28.00 to $29.00 and gave the company a "market perform" rating in a research report on Friday, April 10th. One investment analyst has rated the stock with a Buy rating and four have issued a Hold rating to the company. According to MarketBeat, the stock has a consensus rating of "Hold" and a consensus price target of $28.25.

Insider Transactions at MGIC Investment

In related news, CEO Timothy J. Mattke sold 139,202 shares of the firm's stock in a transaction dated Thursday, April 2nd. The stock was sold at an average price of $26.49, for a total transaction of $3,687,460.98. Following the sale, the chief executive officer directly owned 1,118,005 shares of the company's stock, valued at $29,615,952.45. This trade represents a 11.07% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, COO Salvatore A. Miosi sold 10,931 shares of the firm's stock in a transaction dated Wednesday, April 1st. The stock was sold at an average price of $26.25, for a total value of $286,938.75. Following the sale, the chief operating officer directly owned 590,951 shares in the company, valued at approximately $15,512,463.75. This trade represents a 1.82% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 1.34% of the stock is currently owned by corporate insiders.

MGIC Investment Stock Up 0.5%

Shares of MTG stock opened at $25.91 on Friday. The stock's 50-day simple moving average is $26.82 and its 200-day simple moving average is $27.44. The company has a debt-to-equity ratio of 0.13, a quick ratio of 1.14 and a current ratio of 1.14. The firm has a market capitalization of $5.48 billion, a PE ratio of 8.22, a P/E/G ratio of 1.57 and a beta of 0.71. MGIC Investment Corporation has a fifty-two week low of $24.77 and a fifty-two week high of $29.97.

MGIC Investment (NYSE:MTG - Get Free Report) last announced its quarterly earnings data on Wednesday, April 29th. The insurance provider reported $0.76 earnings per share for the quarter, beating analysts' consensus estimates of $0.73 by $0.03. The business had revenue of $297.08 million for the quarter, compared to analyst estimates of $303.12 million. MGIC Investment had a return on equity of 14.01% and a net margin of 59.63%.The company's revenue was down 3.0% on a year-over-year basis. During the same period in the prior year, the company earned $0.75 earnings per share. Equities analysts expect that MGIC Investment Corporation will post 3.07 earnings per share for the current year.

MGIC Investment Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, May 21st. Stockholders of record on Wednesday, May 6th will be issued a $0.15 dividend. The ex-dividend date of this dividend is Wednesday, May 6th. This represents a $0.60 dividend on an annualized basis and a dividend yield of 2.3%. MGIC Investment's dividend payout ratio is currently 19.05%.

MGIC Investment announced that its board has approved a stock repurchase program on Thursday, April 23rd that authorizes the company to buyback $750.00 million in outstanding shares. This buyback authorization authorizes the insurance provider to purchase up to 12.4% of its shares through open market purchases. Shares buyback programs are usually an indication that the company's leadership believes its shares are undervalued.

About MGIC Investment

MGIC Investment Corporation NYSE: MTG is a leading provider of private mortgage insurance in the United States. Established in 1957 as the nation's first private mortgage insurer, MGIC helps lenders manage credit risk and facilitates homeownership by protecting mortgage loans against default. Headquartered in Milwaukee, Wisconsin, the company operates through its principal subsidiary, Mortgage Guaranty Insurance Corporation, and maintains relationships with a broad network of originators and servicers nationwide.

The company's primary business activity involves issuing mortgage insurance policies that enable borrowers to purchase homes with down payments below traditional lending thresholds.

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