Bank of America Corp DE Has $37.15 Million Stake in MGIC Investment Corporation $MTG

Key Points

• Bank of America increased its MGIC Investment stake by 15.4% in the first quarter, holding 1.42 million shares valued at approximately $37.15 million. Institutional investors and hedge funds collectively own 95.58% of the stock.
• MGIC Investment reported quarterly EPS of $0.87, beating analyst expectations of $0.76, although revenue fell 2.9% year over year to $295.39 million.
• The company authorized a $750 million share buyback and raised its quarterly dividend from $0.15 to $0.17 per share, equivalent to a 2.2% annual yield.

Bank of America Corp DE increased its position in shares of MGIC Investment Corporation (NYSE:MTG - Free Report) by 15.4% during the first quarter, according to the company in its most recent 13F filing with the SEC. The firm owned 1,415,378 shares of the insurance provider's stock after buying an additional 188,519 shares during the quarter. Bank of America Corp DE owned about 0.67% of MGIC Investment worth $37,154,000 at the end of the most recent quarter.

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 approximately $28,000. SBI Securities Co. Ltd. increased its holdings in MGIC Investment by 40.3% during the 4th quarter. SBI Securities Co. Ltd. now owns 1,461 shares of the insurance provider's stock worth $43,000 after acquiring an additional 420 shares during the period. Geneos Wealth Management Inc. increased its holdings in shares of MGIC Investment by 88.0% in the first quarter. Geneos Wealth Management Inc. now owns 1,745 shares of the insurance provider's stock worth $43,000 after purchasing an additional 817 shares during the period. Kestra Advisory Services LLC purchased a new stake in shares of MGIC Investment in the fourth quarter worth $79,000. Finally, Danske Bank A S purchased a new stake in shares of MGIC Investment in the third quarter worth $82,000. 95.58% of the stock is currently owned by institutional investors and hedge funds.

MGIC Investment Price Performance

NYSE:MTG opened at $31.13 on Friday. The company has a quick ratio of 1.19, a current ratio of 1.19 and a debt-to-equity ratio of 0.13. The business's 50-day simple moving average is $28.46 and its two-hundred day simple moving average is $27.25. MGIC Investment Corporation has a 52 week low of $24.69 and a 52 week high of $31.89. The stock has a market cap of $6.38 billion, a PE ratio of 9.73, a P/E/G ratio of 0.79 and a beta of 0.66.

MGIC Investment (NYSE:MTG - Get Free Report) last issued its quarterly earnings data on Wednesday, July 29th. The insurance provider reported $0.87 earnings per share for the quarter, beating analysts' consensus estimates of $0.76 by $0.11. The firm had revenue of $295.39 million during the quarter, compared to analyst estimates of $297.54 million. MGIC Investment had a return on equity of 13.90% and a net margin of 59.20%.The business's quarterly revenue was down 2.9% compared to the same quarter last year. During the same quarter last year, the business posted $0.82 earnings per share. As a group, analysts forecast that MGIC Investment Corporation will post 3.21 EPS for the current fiscal year.

MGIC Investment declared that its Board of Directors has authorized a stock buyback program on Thursday, April 23rd that authorizes the company to buyback $750.00 million in shares. This buyback authorization authorizes the insurance provider to reacquire up to 12.4% of its shares through open market purchases. Shares buyback programs are usually an indication that the company's board of directors believes its stock is undervalued.

MGIC Investment Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, August 20th. Shareholders of record on Wednesday, August 5th will be given a dividend of $0.17 per share. This is a boost from MGIC Investment's previous quarterly dividend of $0.15. The ex-dividend date of this dividend is Wednesday, August 5th. This represents a $0.68 annualized dividend and a yield of 2.2%. MGIC Investment's payout ratio is 21.25%.

Insider Activity at MGIC Investment

In related news, COO Salvatore A. Miosi sold 30,000 shares of the business's stock in a transaction on Monday, June 8th. The shares were sold at an average price of $25.38, for a total transaction of $761,400.00. Following the completion of the transaction, the chief operating officer directly owned 560,951 shares in the company, valued at $14,236,936.38. The trade was a 5.08% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Paula C. Maggio sold 20,937 shares of the company's stock in a transaction dated Friday, May 29th. The stock was sold at an average price of $25.55, for a total value of $534,940.35. Following the completion of 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. In the last quarter, insiders have sold 70,937 shares of company stock valued at $1,902,340. 1.34% of the stock is currently owned by company insiders.

Analyst Upgrades and Downgrades

Several equities analysts recently commented on the company. Roth Capital restated a "buy" rating and set a $35.00 target price on shares of MGIC Investment in a research report on Thursday, July 30th. Barclays decreased their price objective on shares of 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. Weiss Ratings raised shares of MGIC Investment from a "buy (b)" rating to a "buy (b+)" rating in a research note on Tuesday, July 7th. Keefe, Bruyette & Woods boosted their price target on shares of MGIC Investment from $29.00 to $30.00 and gave the stock a "market perform" rating in a research note on Friday, July 31st. Finally, Royal Bank Of Canada increased their price target on shares of MGIC Investment from $28.00 to $32.00 and gave the stock a "sector perform" rating in a report on Friday, July 31st. Two investment analysts have rated the stock with a Buy rating and four have given a Hold rating to the stock. Based on data from MarketBeat.com, the company presently has a consensus rating of "Hold" and an average price target of $30.60.

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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