American Century Companies Inc. Cuts Stake in MGIC Investment Corporation $MTG

Key Points

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American Century Companies Inc. lowered its stake in shares of MGIC Investment Corporation (NYSE:MTG - Free Report) by 0.7% during the 1st quarter, according to its most recent filing with the SEC. The firm owned 3,014,182 shares of the insurance provider's stock after selling 20,327 shares during the period. American Century Companies Inc. owned approximately 1.27% of MGIC Investment worth $74,691,000 as of its most recent SEC filing.

Other hedge funds and other institutional investors have also bought and sold shares of the company. KBC Group NV lifted its stake in MGIC Investment by 10.2% during the 1st quarter. KBC Group NV now owns 11,417 shares of the insurance provider's stock valued at $283,000 after acquiring an additional 1,060 shares during the period. Cerity Partners LLC lifted its stake in MGIC Investment by 59.2% during the 1st quarter. Cerity Partners LLC now owns 78,307 shares of the insurance provider's stock valued at $1,940,000 after acquiring an additional 29,104 shares during the period. GAMMA Investing LLC lifted its stake in MGIC Investment by 39.1% during the 1st quarter. GAMMA Investing LLC now owns 6,068 shares of the insurance provider's stock valued at $150,000 after acquiring an additional 1,705 shares during the period. PNC Financial Services Group Inc. lifted its stake in MGIC Investment by 4.2% during the 1st quarter. PNC Financial Services Group Inc. now owns 10,894 shares of the insurance provider's stock valued at $270,000 after acquiring an additional 437 shares during the period. Finally, Allspring Global Investments Holdings LLC increased its position in shares of MGIC Investment by 50.1% during the 1st quarter. Allspring Global Investments Holdings LLC now owns 16,147 shares of the insurance provider's stock valued at $406,000 after purchasing an additional 5,393 shares during the last quarter. Institutional investors own 95.58% of the company's stock.

MGIC Investment Stock Performance

MGIC Investment stock traded up $0.0250 during midday trading on Thursday, hitting $27.5250. The stock had a trading volume of 1,301,011 shares, compared to its average volume of 2,176,593. The firm's fifty day moving average is $26.75 and its two-hundred day moving average is $25.47. The company has a market capitalization of $6.35 billion, a PE ratio of 9.02, a P/E/G ratio of 2.01 and a beta of 0.90. MGIC Investment Corporation has a 52-week low of $21.94 and a 52-week high of $28.67. The company has a current ratio of 1.46, a quick ratio of 1.46 and a debt-to-equity ratio of 0.13.

MGIC Investment (NYSE:MTG - Get Free Report) last released its earnings results on Wednesday, July 30th. The insurance provider reported $0.82 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.70 by $0.12. The company had revenue of $304.25 million during the quarter, compared to analyst estimates of $306.25 million. MGIC Investment had a net margin of 62.58% and a return on equity of 14.73%. The firm's quarterly revenue was down .3% compared to the same quarter last year. During the same period in the prior year, the firm posted $0.77 EPS. On average, research analysts forecast that MGIC Investment Corporation will post 2.71 EPS for the current year.

MGIC Investment announced that its Board of Directors has initiated a share repurchase plan on Thursday, April 24th that authorizes the company to buyback $750.00 million in shares. This buyback authorization authorizes the insurance provider to repurchase up to 12.5% of its shares through open market purchases. Shares buyback plans are generally an indication that the company's board of directors believes its stock is undervalued.

MGIC Investment Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, August 21st. Investors of record on Thursday, August 7th will be issued a $0.15 dividend. The ex-dividend date of this dividend is Thursday, August 7th. This represents a $0.60 annualized dividend and a yield of 2.2%. This is a positive change from MGIC Investment's previous quarterly dividend of $0.13. MGIC Investment's payout ratio is currently 19.67%.

Insider Buying and Selling

In related news, CEO Timothy J. Mattke sold 139,203 shares of the stock in a transaction that occurred on Thursday, August 7th. The shares were sold at an average price of $26.54, for a total value of $3,694,447.62. Following the completion of the sale, the chief executive officer directly owned 1,100,994 shares of the company's stock, valued at approximately $29,220,380.76. This represents a 11.22% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, EVP Paula C. Maggio sold 20,000 shares of the stock in a transaction that occurred on Friday, May 30th. The stock was sold at an average price of $26.49, for a total transaction of $529,800.00. Following the completion of the sale, the executive vice president directly owned 157,395 shares of the company's stock, valued at $4,169,393.55. This represents a 11.27% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders sold 189,203 shares of company stock valued at $5,010,848. 1.05% of the stock is owned by corporate insiders.

Analyst Ratings Changes

Several equities research analysts have recently commented on MTG shares. Compass Point reaffirmed a "neutral" rating and set a $28.00 price target (up previously from $27.00) on shares of MGIC Investment in a research report on Friday, May 23rd. Barclays upped their price target on shares of MGIC Investment from $26.00 to $27.00 and gave the company an "equal weight" rating in a research report on Tuesday, July 8th. Finally, Keefe, Bruyette & Woods upped their price target on shares of MGIC Investment from $26.00 to $27.00 and gave the company a "market perform" rating in a research report on Monday, July 7th. Five equities research analysts have rated the stock with a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the company has an average rating of "Reduce" and a consensus target price of $26.67.

MGIC Investment Profile

MGIC Investment Corporation, through its subsidiaries, provides private mortgage insurance, other mortgage credit risk management solutions, and ancillary services to lenders and government sponsored entities in the United States, the District of Columbia, Puerto Rico, and Guam. The company offers primary mortgage insurance that provides mortgage default protection on individual loans, as well as covers unpaid loan principal, delinquent interest, and various expenses associated with the default and subsequent foreclosure.