California State Teachers Retirement System Has $7.20 Million Stock Holdings in MGIC Investment Corporation $MTG

Key Points

• California State Teachers Retirement System increased its MGIC Investment stake by 16.2% in the first quarter, bringing its holdings to 274,193 shares valued at approximately $7.2 million. Institutional investors and hedge funds collectively own 95.58% of the company.
• MGIC Investment reported quarterly earnings of $0.87 per share, exceeding analyst estimates of $0.76, although revenue declined 2.9% year over year to $295.39 million. Analysts maintain a consensus “Hold” rating with a $30.60 price target.
• The company raised its quarterly dividend from $0.15 to $0.17 per share and authorized a $750 million share-repurchase program covering up to 12.4% of outstanding shares.

California State Teachers Retirement System lifted its stake in shares of MGIC Investment Corporation (NYSE:MTG - Free Report) by 16.2% during the first quarter, according to its most recent filing with the Securities & Exchange Commission. The firm owned 274,193 shares of the insurance provider's stock after acquiring an additional 38,217 shares during the period. California State Teachers Retirement System owned 0.13% of MGIC Investment worth $7,198,000 at the end of the most recent reporting period.

Other institutional investors have also added to or reduced their stakes in the company. Jefferies Financial Group Inc. raised its holdings in shares of MGIC Investment by 245.3% in the fourth quarter. Jefferies Financial Group Inc. now owns 364,650 shares of the insurance provider's stock valued at $10,655,000 after purchasing an additional 259,039 shares during the last quarter. Geode Capital Management LLC raised its stake in MGIC Investment by 2.8% in the 4th quarter. Geode Capital Management LLC now owns 5,371,470 shares of the insurance provider's stock valued at $163,368,000 after acquiring an additional 146,589 shares during the period. Arbejdsmarkedets Tillaegspension purchased a new stake in shares of MGIC Investment during the 4th quarter valued at approximately $24,456,000. Norges Bank bought a new position in shares of MGIC Investment in the fourth quarter worth $96,248,000. Finally, Assetmark Inc. increased its position in shares of MGIC Investment by 21.8% during the fourth quarter. Assetmark Inc. now owns 2,038,558 shares of the insurance provider's stock valued at $59,567,000 after buying an additional 364,406 shares during the period. 95.58% of the stock is owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth

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

MGIC Investment Trading Up 1.2%

Shares of MTG stock opened at $30.96 on Wednesday. The company has a debt-to-equity ratio of 0.13, a current ratio of 1.19 and a quick ratio of 1.19. The firm has a fifty day moving average price of $27.61 and a 200-day moving average price of $27.02. The company has a market cap of $6.35 billion, a price-to-earnings ratio of 9.67, a PEG ratio of 2.06 and a beta of 0.66. MGIC Investment Corporation has a 1 year low of $24.69 and a 1 year high of $31.89.

MGIC Investment (NYSE:MTG - Get Free Report) last issued its quarterly earnings results on Wednesday, July 29th. The insurance provider reported $0.87 earnings per share for the quarter, beating the consensus estimate 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 for the quarter, compared to the consensus estimate of $297.54 million. During the same quarter in the previous year, the firm earned $0.82 earnings per share. The company'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 3.12 earnings per share for the current year.

MGIC Investment Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, August 20th. Stockholders of record on Wednesday, August 5th will be issued a dividend of $0.17 per share. This is a positive change 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 dividend yield of 2.2%. MGIC Investment's payout ratio is currently 18.75%.

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

Insiders Place Their Bets

In other MGIC Investment 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 transaction, the chief operating officer 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 legal filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Paula C. Maggio sold 20,937 shares of the stock in a transaction dated Friday, May 29th. The stock was sold at an average price of $25.55, for a total transaction of $534,940.35. Following the completion of the sale, the executive vice president directly owned 169,620 shares in the company, valued at $4,333,791. This trade represents a 10.99% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 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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