Capital Fund Management S.A. Raises Holdings 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. lifted its position in MGIC Investment Corporation (NYSE:MTG - Free Report) by 178.9% during the first quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund owned 173,965 shares of the insurance provider's stock after acquiring an additional 111,584 shares during the period. Capital Fund Management S.A. owned 0.07% of MGIC Investment worth $4,311,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

A number of other institutional investors and hedge funds also recently added to or reduced their stakes in MTG. Caisse DE Depot ET Placement DU Quebec boosted its stake in MGIC Investment by 292.0% during the fourth 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 buying an additional 1,543,908 shares during the last quarter. BNP Paribas Financial Markets boosted its stake in MGIC Investment by 259.4% during the fourth quarter. BNP Paribas Financial Markets now owns 1,105,399 shares of the insurance provider's stock worth $26,209,000 after buying an additional 797,852 shares during the last quarter. JPMorgan Chase & Co. boosted its stake in MGIC Investment by 4.8% during the first quarter. JPMorgan Chase & Co. now owns 16,162,180 shares of the insurance provider's stock worth $400,499,000 after buying an additional 743,212 shares during the last quarter. Citigroup Inc. boosted its stake in MGIC Investment by 259.1% during the first quarter. Citigroup Inc. now owns 902,982 shares of the insurance provider's stock worth $22,376,000 after buying an additional 651,549 shares during the last quarter. Finally, Nuveen LLC acquired a new position in MGIC Investment during the first quarter worth $13,266,000. Institutional investors and hedge funds own 95.58% of the company's stock.

MGIC Investment Trading Down 1.2%

Shares of MTG stock traded down $0.35 on Thursday, hitting $27.66. The stock had a trading volume of 710,737 shares, compared to its average volume of 2,149,427. The company has a debt-to-equity ratio of 0.13, a current ratio of 1.46 and a quick ratio of 1.46. The firm has a market capitalization of $6.38 billion, a P/E ratio of 9.06, a P/E/G ratio of 2.01 and a beta of 0.90. MGIC Investment Corporation has a 1 year low of $21.94 and a 1 year high of $28.67. The company's 50 day moving average price is $26.86 and its 200-day moving average price is $25.55.

MGIC Investment (NYSE:MTG - Get Free Report) last posted its quarterly earnings data 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. The firm had revenue of $304.25 million for the quarter, compared to the consensus estimate of $306.25 million. MGIC Investment had a return on equity of 14.73% and a net margin of 62.58%.The company's quarterly revenue was down .3% compared to the same quarter last year. During the same quarter in the previous year, the business earned $0.77 EPS. Analysts anticipate that MGIC Investment Corporation will post 2.71 earnings per share for the current year.

MGIC Investment Increases Dividend

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

Insider Activity at MGIC Investment

In related news, COO Salvatore A. Miosi sold 30,000 shares of the business's stock in a transaction on Friday, August 1st. The stock was sold at an average price of $26.22, for a total value of $786,600.00. Following the sale, the chief operating officer owned 249,401 shares in the company, valued at approximately $6,539,294.22. The trade was a 10.74% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CEO Timothy J. Mattke sold 139,203 shares of the company's stock in a transaction dated Thursday, August 7th. The stock was sold at an average price of $26.54, for a total value of $3,694,447.62. Following the sale, 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. In the last 90 days, insiders have sold 189,203 shares of company stock worth $5,010,848. 1.05% of the stock is currently owned by company insiders.

Analyst Upgrades and Downgrades

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