Baer Investment Advisory LLC Acquires Shares of 46,861 MGIC Investment Corporation $MTG

Key Points

• Baer Investment Advisory LLC opened a new position in MGIC Investment, buying 46,861 shares worth about $1.23 million in the first quarter.
• Institutional ownership remains very high, with hedge funds and other investors holding 95.58% of MGIC Investment’s stock. Several large firms also recently boosted or initiated stakes in the company.
• MGIC Investment continues to return capital to shareholders through a $0.15 quarterly dividend and a new $750 million share repurchase authorization, while analysts currently rate the stock a consensus Hold with a $28.25 target price.

Baer Investment Advisory LLC bought a new position in MGIC Investment Corporation (NYSE:MTG - Free Report) in the 1st quarter, according to the company in its most recent filing with the SEC. The institutional investor bought 46,861 shares of the insurance provider's stock, valued at approximately $1,230,000.

Other institutional investors and hedge funds also recently made changes to their positions in the company. Norges Bank bought a new stake in MGIC Investment in the fourth quarter worth about $96,248,000. AQR Capital Management LLC grew its position in shares of MGIC Investment by 92.4% during the 2nd quarter. AQR Capital Management LLC now owns 6,333,091 shares of the insurance provider's stock valued at $176,313,000 after acquiring an additional 3,041,446 shares during the period. Arbejdsmarkedets Tillaegspension purchased a new stake in shares of MGIC Investment during the 4th quarter worth approximately $24,456,000. Jane Street Group LLC increased its stake in shares of MGIC Investment by 71.2% during the 4th quarter. Jane Street Group LLC now owns 1,739,877 shares of the insurance provider's stock worth $50,839,000 after purchasing an additional 723,480 shares during the last quarter. Finally, Caisse de depot et placement du Quebec raised its holdings in shares of MGIC Investment by 20.4% in the 3rd quarter. Caisse de depot et placement du Quebec now owns 3,943,965 shares of the insurance provider's stock worth $111,890,000 after purchasing an additional 667,876 shares during the period. Hedge funds and other institutional investors own 95.58% of the company's stock.

Analyst Upgrades and Downgrades

MTG has been the subject of several research reports. Weiss Ratings reissued a "buy (b)" rating on shares of MGIC Investment in a report on Monday, June 15th. Keefe, Bruyette & Woods boosted their target price on MGIC Investment from $28.00 to $29.00 and gave the company a "market perform" rating in a research note on Friday, April 10th. Royal Bank Of Canada started coverage on MGIC Investment in a research report on Friday, May 22nd. They set a "sector perform" rating and a $28.00 price target on the stock. Barclays cut their price target on MGIC Investment from $29.00 to $28.00 and set an "equal weight" rating for the company in a research note on Friday, May 1st. Finally, UBS Group decreased their price objective on MGIC Investment from $29.50 to $28.00 and set a "neutral" rating for the company in a report on Thursday, March 12th. One investment analyst has rated the stock with a Buy rating and four have assigned a Hold rating to the company. According to data from MarketBeat, the stock presently has a consensus rating of "Hold" and a consensus target price of $28.25.

MGIC Investment Stock Down 0.1%

Shares of NYSE MTG opened at $28.20 on Friday. MGIC Investment Corporation has a 12 month low of $24.69 and a 12 month high of $29.97. The company has a current ratio of 1.14, a quick ratio of 1.14 and a debt-to-equity ratio of 0.13. The firm has a market capitalization of $5.97 billion, a price-to-earnings ratio of 8.95, a PEG ratio of 1.95 and a beta of 0.67. The business has a 50-day moving average of $26.53 and a 200-day moving average of $27.00.

MGIC Investment (NYSE:MTG - Get Free Report) last announced its earnings results 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. MGIC Investment had a net margin of 59.63% and a return on equity of 14.01%. The business had revenue of $297.08 million for the quarter, compared to the consensus estimate of $303.12 million. During the same period last year, the firm posted $0.75 earnings per share. MGIC Investment's quarterly revenue was down 3.0% on a year-over-year basis. Sell-side analysts expect that MGIC Investment Corporation will post 3.05 earnings per share for the current fiscal year.

MGIC Investment Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Thursday, May 21st. Stockholders of record on Wednesday, May 6th were issued a $0.15 dividend. The ex-dividend date of this dividend was Wednesday, May 6th. This represents a $0.60 dividend on an annualized basis and a dividend yield of 2.1%. MGIC Investment's dividend payout ratio is presently 19.05%.

MGIC Investment declared that its Board of Directors has approved a stock repurchase plan on Thursday, April 23rd that permits the company to buyback $750.00 million in outstanding shares. This buyback authorization permits the insurance provider to repurchase up to 12.4% of its stock through open market purchases. Stock buyback plans are generally a sign that the company's management believes its shares are undervalued.

Insider Buying and Selling at MGIC Investment

In related news, COO Salvatore A. Miosi sold 30,000 shares of the stock in a transaction on Monday, June 8th. The stock was sold at an average price of $25.38, for a total value of $761,400.00. Following the transaction, the chief operating officer owned 560,951 shares of the company's stock, valued at $14,236,936.38. This represents a 5.08% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Paula C. Maggio sold 20,937 shares of the firm's stock in a transaction dated Friday, May 29th. The shares were sold at an average price of $25.55, for a total value of $534,940.35. Following the sale, the executive vice president owned 169,620 shares in the company, valued at $4,333,791. The trade was a 10.99% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Company insiders own 1.34% of the company's stock.

MGIC Investment Company Profile

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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