Capital Fund Management S.A. Raises Stake in MGIC Investment Corporation $MTG

Key Points

• Capital Fund Management S.A. increased its stake in MGIC Investment Corporation by 178.9%, owning 173,965 shares valued at approximately $4.31 million.
• Several institutional investors, including Wells Fargo and Hsbc Holdings PLC, have also bolstered their positions in MGIC, which is now over 95% owned by hedge funds and institutional investors.
• MGIC recently announced an increase in its quarterly dividend from $0.13 to $0.15 per share, reflecting a yield of 2.1% for shareholders.

Capital Fund Management S.A. raised its holdings in shares of MGIC Investment Corporation (NYSE:MTG - Free Report) by 178.9% during the first quarter, according to its most recent filing with the SEC. The firm owned 173,965 shares of the insurance provider's stock after purchasing an additional 111,584 shares during the period. Capital Fund Management S.A. owned 0.07% of MGIC Investment worth $4,311,000 at the end of the most recent reporting period.

Several other large investors have also recently modified their holdings of MTG. Caisse DE Depot ET Placement DU Quebec raised its stake in shares of MGIC Investment by 292.0% during the 4th quarter. Caisse DE Depot ET Placement DU Quebec now owns 2,072,629 shares of the insurance provider's stock worth $49,142,000 after acquiring an additional 1,543,908 shares in the last quarter. BNP Paribas Financial Markets grew its position in MGIC Investment by 259.4% during the 4th quarter. BNP Paribas Financial Markets now owns 1,105,399 shares of the insurance provider's stock worth $26,209,000 after purchasing an additional 797,852 shares during the last quarter. JPMorgan Chase & Co. grew its position in MGIC Investment by 4.8% during the 1st quarter. JPMorgan Chase & Co. now owns 16,162,180 shares of the insurance provider's stock worth $400,499,000 after purchasing an additional 743,212 shares during the last quarter. Citigroup Inc. grew its position in MGIC Investment by 259.1% during the 1st quarter. Citigroup Inc. now owns 902,982 shares of the insurance provider's stock worth $22,376,000 after purchasing an additional 651,549 shares during the last quarter. Finally, Nuveen LLC purchased a new stake in MGIC Investment during the 1st quarter worth approximately $13,266,000. Institutional investors own 95.58% of the company's stock.

MGIC Investment Stock Performance

Shares of MTG stock traded up $0.07 during trading hours on Friday, hitting $27.75. The company's stock had a trading volume of 266,741 shares, compared to its average volume of 2,141,174. The company has a 50 day moving average of $26.87 and a 200 day moving average of $25.57. The stock has a market cap of $6.40 billion, a PE ratio of 9.10, a price-to-earnings-growth ratio of 2.02 and a beta of 0.90. The company has a current ratio of 1.46, a quick ratio of 1.46 and a debt-to-equity ratio of 0.13. MGIC Investment Corporation has a 12-month low of $21.94 and a 12-month high of $28.67.

MGIC Investment (NYSE:MTG - Get Free Report) last posted 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 firm had revenue of $304.25 million during the quarter, compared to analysts' expectations of $306.25 million. During the same period in the previous year, the business posted $0.77 EPS. The business's revenue was down .3% compared to the same quarter last year. On average, sell-side analysts forecast that MGIC Investment Corporation will post 2.71 EPS for the current fiscal year.

MGIC Investment Increases Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Thursday, August 21st. Investors of record on Thursday, August 7th were paid a dividend of $0.15 per share. The ex-dividend date of this dividend was Thursday, August 7th. This represents a $0.60 annualized dividend and a yield of 2.2%. This is a boost from MGIC Investment's previous quarterly dividend of $0.13. MGIC Investment's dividend payout ratio is currently 19.67%.

Insider Transactions at MGIC Investment

In related news, COO Salvatore A. Miosi sold 30,000 shares of the company's stock in a transaction dated Friday, August 1st. The shares were sold at an average price of $26.22, for a total value of $786,600.00. Following the completion of the sale, the chief operating officer owned 249,401 shares of the company's stock, valued at approximately $6,539,294.22. This represents a 10.74% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this link. Also, CEO Timothy J. Mattke sold 139,203 shares of the firm's stock in a transaction that occurred on 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 directly owned 1,100,994 shares of the company's stock, valued at approximately $29,220,380.76. The trade was a 11.22% decrease in their position. The disclosure for this sale can be found here. Corporate insiders own 1.05% of the company's stock.

Wall Street Analyst Weigh In

MTG has been the topic of several research analyst reports. Barclays boosted their target price on shares of MGIC Investment from $26.00 to $27.00 and gave the stock an "equal weight" rating in a research report on Tuesday, July 8th. Keefe, Bruyette & Woods boosted 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 report on Monday, July 7th. Finally, Compass Point reissued a "neutral" rating and set a $28.00 target price (up previously from $27.00) on shares of MGIC Investment in a research report on Friday, May 23rd. Five equities research analysts have rated the stock with a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, MGIC Investment has a consensus rating of "Reduce" and a consensus price target 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.