Bank of New York Mellon Corp Invests $51.06 Million in MGIC Investment Corporation $MTG

Key Points

• Bank of New York Mellon acquired 1.81 million MGIC Investment shares worth approximately $51.1 million, becoming the company’s newest major institutional investor with a 0.88% stake. Institutional investors collectively own 95.58% of MTG.
• Analysts maintain a generally positive outlook, with MGIC Investment carrying a “Moderate Buy” consensus rating and an average price target of $30.60. Recent target changes include RBC raising its target to $32 and Roth Capital maintaining a $35 target.
• MGIC Investment exceeded quarterly earnings expectations, reporting $0.87 per share versus the $0.76 consensus estimate, and increased its quarterly dividend to $0.17 per share, implying a 2.2% annual yield.

Bank of New York Mellon Corp acquired a new stake in shares of MGIC Investment Corporation (NYSE:MTG - Free Report) during the 2nd quarter, according to its most recent filing with the SEC. The institutional investor acquired 1,810,595 shares of the insurance provider's stock, valued at approximately $51,059,000. Bank of New York Mellon Corp owned about 0.88% of MGIC Investment at the end of the most recent quarter.

Other large investors also recently modified their holdings of the company. Newbridge Financial Services Group Inc. purchased a new position in shares of MGIC Investment during the third quarter worth approximately $28,000. Geneos Wealth Management Inc. boosted its stake in shares of MGIC Investment by 88.0% in the 1st quarter. Geneos Wealth Management Inc. now owns 1,745 shares of the insurance provider's stock valued at $43,000 after purchasing an additional 817 shares in the last quarter. SBI Securities Co. Ltd. boosted its stake in shares of MGIC Investment by 40.3% in the 4th quarter. SBI Securities Co. Ltd. now owns 1,461 shares of the insurance provider's stock valued at $43,000 after purchasing an additional 420 shares in the last quarter. Harbor Investment Advisory LLC grew its holdings in shares of MGIC Investment by 613.0% during the 2nd quarter. Harbor Investment Advisory LLC now owns 2,574 shares of the insurance provider's stock valued at $73,000 after purchasing an additional 2,213 shares during the last quarter. Finally, Kestra Advisory Services LLC bought a new position in shares of MGIC Investment during the 4th quarter valued at $79,000. 95.58% of the stock is owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

Several analysts have issued reports on MTG shares. Weiss Ratings upgraded shares of MGIC Investment from a "buy (b+)" rating to a "buy (a-)" rating in a research report on Wednesday, August 19th. Zacks Research upgraded MGIC Investment from a "hold" rating to a "strong-buy" rating in a report on Tuesday. Royal Bank Of Canada boosted their target price on MGIC Investment from $28.00 to $32.00 and gave the company a "sector perform" rating in a research note on Friday, July 31st. Roth Capital restated a "buy" rating and set a $35.00 target price on shares of MGIC Investment in a report on Thursday, July 30th. Finally, Barclays reduced their price target 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. Two investment analysts have rated the stock with a Strong Buy rating, one has given a Buy rating and four have given a Hold rating to the company. According to data from MarketBeat, MGIC Investment presently has an average rating of "Moderate Buy" and an average target price of $30.60.

MGIC Investment Price Performance

MTG stock opened at $31.12 on Friday. The firm's 50-day moving average price is $29.41 and its two-hundred day moving average price is $27.52. MGIC Investment Corporation has a 12-month low of $24.69 and a 12-month high of $31.89. The stock has a market capitalization of $6.38 billion, a price-to-earnings ratio of 9.73, a PEG ratio of 0.80 and a beta of 0.66. The company has a current ratio of 1.19, a quick ratio of 1.19 and a debt-to-equity ratio of 0.13.

MGIC Investment (NYSE:MTG - Get Free Report) last posted its earnings results on Wednesday, July 29th. The insurance provider reported $0.87 earnings per share for the quarter, topping analysts' consensus estimates of $0.76 by $0.11. MGIC Investment had a net margin of 59.20% and a return on equity of 13.90%. The company had revenue of $295.39 million during the quarter, compared to analyst estimates of $297.54 million. During the same period in the prior year, the business posted $0.82 earnings per share. MGIC Investment's revenue for the quarter was down 2.9% on a year-over-year basis. As a group, equities analysts predict that MGIC Investment Corporation will post 3.24 earnings per share for the current year.

MGIC Investment Increases Dividend

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

Insider Buying and Selling

In related news, EVP Paula C. Maggio sold 20,000 shares of the firm's stock in a transaction on Friday, August 7th. The stock was sold at an average price of $30.30, for a total value of $606,000.00. Following the completion of the sale, the executive vice president owned 149,620 shares of the company's stock, valued at $4,533,486. This trade represents a 11.79% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, COO Salvatore A. Miosi sold 30,000 shares of MGIC Investment 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 sale, the chief operating officer owned 560,951 shares in the company, valued at approximately $14,236,936.38. This trade represents a 5.08% decrease in their position. 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 owned by corporate insiders.

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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