BlackRock Inc. Invests $618.47 Million in MGIC Investment Corporation $MTG

Key Points

• BlackRock acquired a new 10.69% stake in MGIC Investment during the second quarter, purchasing 21.93 million shares valued at approximately $618.5 million. Institutional investors collectively own 95.58% of the company.
• MGIC Investment reported quarterly EPS of $0.87, surpassing analysts’ $0.76 estimate, although revenue fell 2.9% year over year to $295.4 million. The company also raised its quarterly dividend from $0.15 to $0.17 per share.
• Analysts maintain a generally positive outlook, with the stock carrying a “Moderate Buy” consensus rating and an average price target of $30.60; shares recently traded at $30.85.

BlackRock Inc. bought a new stake in MGIC Investment Corporation (NYSE:MTG - Free Report) during the 2nd quarter, according to its most recent Form 13F filing with the SEC. The firm bought 21,931,461 shares of the insurance provider's stock, valued at approximately $618,467,000. BlackRock Inc. owned 10.69% of MGIC Investment as of its most recent SEC filing.

A number of other institutional investors and hedge funds also recently made changes to their positions in MTG. Newbridge Financial Services Group Inc. bought a new position in MGIC Investment in the third quarter valued at approximately $28,000. SBI Securities Co. Ltd. boosted its stake in MGIC Investment by 40.3% in the fourth quarter. SBI Securities Co. Ltd. now owns 1,461 shares of the insurance provider's stock valued at $43,000 after buying an additional 420 shares in the last quarter. Geneos Wealth Management Inc. grew its position in MGIC Investment by 88.0% in the first quarter. Geneos Wealth Management Inc. now owns 1,745 shares of the insurance provider's stock valued at $43,000 after acquiring an additional 817 shares during the last quarter. Mitsubishi UFJ Asset Management Co. Ltd. bought a new position in MGIC Investment in the second quarter valued at about $62,000. Finally, Harbor Investment Advisory LLC raised its stake in MGIC Investment by 613.0% during the second quarter. Harbor Investment Advisory LLC now owns 2,574 shares of the insurance provider's stock worth $73,000 after acquiring an additional 2,213 shares in the last quarter. Institutional investors own 95.58% of the company's stock.

Insiders Place Their Bets

In related news, EVP Paula C. Maggio sold 20,937 shares of the business's stock in a transaction on 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 of the company's stock, valued at $4,333,791. The trade was a 10.99% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, COO Salvatore A. Miosi sold 30,000 shares of the stock in a transaction on Monday, June 8th. The shares were sold at an average price of $25.38, for a total value of $761,400.00. Following the completion of the sale, the chief operating officer owned 560,951 shares of the company's stock, valued at $14,236,936.38. The trade was a 5.08% decrease in their ownership of the stock. 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 worth $1,902,340. 1.34% of the stock is owned by company insiders.

MGIC Investment Stock Performance

NYSE:MTG opened at $30.85 on Monday. The stock's 50-day moving average is $29.00 and its 200-day moving average is $27.40. MGIC Investment Corporation has a 1-year low of $24.69 and a 1-year high of $31.89. The company has a current ratio of 1.19, a quick ratio of 1.19 and a debt-to-equity ratio of 0.13. The stock has a market cap of $6.33 billion, a P/E ratio of 9.64, a price-to-earnings-growth 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 (EPS) for the quarter, beating 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 business had revenue of $295.39 million during the quarter, compared to analyst estimates of $297.54 million. During the same quarter last year, the business earned $0.82 EPS. The firm's quarterly revenue was down 2.9% on a year-over-year basis. Equities research analysts anticipate that MGIC Investment Corporation will post 3.24 earnings per share for the current year.

MGIC Investment Increases Dividend

The firm also recently declared 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. The ex-dividend date of this dividend was Wednesday, August 5th. This is an increase from MGIC Investment's previous quarterly dividend of $0.15. This represents a $0.68 annualized dividend and a dividend yield of 2.2%. MGIC Investment's payout ratio is 21.25%.

Wall Street Analyst Weigh In

A number of research analysts have recently commented on the stock. Royal Bank Of Canada increased their target price 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. Keefe, Bruyette & Woods increased their price objective on shares of MGIC Investment from $29.00 to $30.00 and gave the company a "market perform" rating in a research note on Friday, July 31st. Weiss Ratings upgraded shares of MGIC Investment from a "buy (b+)" rating to a "buy (a-)" rating in a research report on Wednesday. Barclays decreased their target price on shares of MGIC Investment from $29.00 to $28.00 and set an "equal weight" rating on the stock in a research note on Friday, May 1st. Finally, Roth Capital reiterated a "buy" rating and set a $35.00 price target on shares of MGIC Investment in a report on Thursday, July 30th. One analyst has rated the stock with a Strong Buy rating, one has assigned a Buy rating and four have given a Hold rating to the stock. According to MarketBeat, the company presently has an average rating of "Moderate Buy" and an average target price of $30.60.

MGIC Investment 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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