Brandywine Global Investment Management LLC Acquires 72,784 Shares of MGIC Investment Corporation $MTG

Key Points

• Brandywine Global Investment Management LLC increased its stake in MGIC Investment Corporation by 7.1%, acquiring an additional 72,784 shares to own a total of 1,099,845 shares valued at approximately $27.25 million.
• MGIC Investment recently announced a quarterly dividend increase to $0.15 per share, reflecting a commitment to returning value to shareholders, with an annualized yield of 2.2%.
• Insider trading activities included COO Salvatore A. Miosi and CEO Timothy J. Mattke selling their shares, resulting in ownership decreases of 10.74% and 11.22% respectively, raising questions about insider confidence.

Brandywine Global Investment Management LLC boosted its holdings in shares of MGIC Investment Corporation (NYSE:MTG - Free Report) by 7.1% in the first quarter, according to its most recent filing with the SEC. The firm owned 1,099,845 shares of the insurance provider's stock after acquiring an additional 72,784 shares during the period. Brandywine Global Investment Management LLC owned 0.46% of MGIC Investment worth $27,254,000 as of its most recent filing with the SEC.

A number of other hedge funds have also modified their holdings of MTG. KBC Group NV lifted its holdings in MGIC Investment by 10.2% during the first quarter. KBC Group NV now owns 11,417 shares of the insurance provider's stock worth $283,000 after acquiring an additional 1,060 shares in the last quarter. Cerity Partners LLC increased 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 worth $1,940,000 after purchasing an additional 29,104 shares in the last quarter. GAMMA Investing LLC increased 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 worth $150,000 after purchasing an additional 1,705 shares in the last quarter. Allspring Global Investments Holdings LLC increased its stake in 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 worth $406,000 after purchasing an additional 5,393 shares in the last quarter. Finally, PNC Financial Services Group Inc. increased 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 worth $270,000 after purchasing an additional 437 shares in the last quarter. 95.58% of the stock is currently owned by institutional investors and hedge funds.

MGIC Investment Stock Up 0.8%

Shares of NYSE:MTG traded up $0.2050 during midday trading on Tuesday, reaching $27.4650. The company had a trading volume of 1,420,958 shares, compared to its average volume of 2,182,850. The business's 50 day moving average price is $26.73 and its 200 day moving average price is $25.45. MGIC Investment Corporation has a 1-year low of $21.94 and a 1-year high of $28.67. The stock has a market cap of $6.33 billion, a PE ratio of 9.00, a P/E/G ratio of 2.02 and a beta of 0.90. The company has a quick ratio of 1.46, a current ratio of 1.46 and a debt-to-equity ratio of 0.13.

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

MGIC Investment announced that its board has initiated a stock buyback plan on Thursday, April 24th that permits the company to repurchase $750.00 million in shares. This repurchase authorization permits the insurance provider to purchase up to 12.5% of its stock through open market purchases. Stock repurchase plans are often a sign that the company's board of directors believes its stock is undervalued.

MGIC Investment Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, August 21st. Shareholders of record on Thursday, August 7th will be issued a $0.15 dividend. This is an increase from MGIC Investment's previous quarterly dividend of $0.13. This represents a $0.60 annualized dividend and a dividend yield of 2.2%. The ex-dividend date is Thursday, August 7th. MGIC Investment's dividend payout ratio is presently 19.67%.

Insider Activity

In other news, EVP Paula C. Maggio sold 20,000 shares of the firm's stock in a transaction dated Friday, May 30th. The shares were 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 owned 157,395 shares in the company, valued at approximately $4,169,393.55. This trade represents a 11.27% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. Also, CEO Timothy J. Mattke sold 139,203 shares of the company's stock in a transaction dated Thursday, August 7th. The shares were sold at an average price of $26.54, for a total transaction of $3,694,447.62. Following the completion of the transaction, the chief executive officer owned 1,100,994 shares in the company, valued at approximately $29,220,380.76. This trade represents a 11.22% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 189,203 shares of company stock valued at $5,010,848 over the last ninety days. 1.41% of the stock is currently owned by company insiders.

Wall Street Analyst Weigh In

A number of equities analysts recently weighed in on the stock. Keefe, Bruyette & Woods upped their target price on shares of MGIC Investment from $26.00 to $27.00 and gave the stock a "market perform" rating in a research note on Monday, July 7th. Compass Point reaffirmed a "neutral" rating and set a $28.00 price objective (up from $27.00) on shares of MGIC Investment in a research report on Friday, May 23rd. Finally, Barclays lifted their target price on MGIC Investment from $26.00 to $27.00 and gave the company an "equal weight" rating in a research report on Tuesday, July 8th. Five investment analysts have rated the stock with a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the company presently 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.