Caxton Associates LLP Makes New Investment in MGIC Investment Corporation $MTG

Key Points

• Caxton Associates LLP has made a new investment in MGIC Investment Corporation, purchasing 70,717 shares valued at approximately $1,752,000 in the 1st quarter.
• Following recent transactions, both COO Salvatore A. Miosi and CEO Timothy J. Mattke significantly reduced their holdings by over 10% after selling tens of thousands of shares.
• MGIC Investment recently declared a quarterly dividend increase to $0.15 per share, up from $0.13, representing a 2.1% yield based on the current share price.

Caxton Associates LLP bought a new position in MGIC Investment Corporation (NYSE:MTG - Free Report) in the 1st quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The fund bought 70,717 shares of the insurance provider's stock, valued at approximately $1,752,000.

Several other large investors also recently added to or reduced their stakes in MTG. WPG Advisers LLC bought a new stake in MGIC Investment in the first quarter worth approximately $26,000. Cullen Frost Bankers Inc. bought a new stake in shares of MGIC Investment during the 1st quarter worth $33,000. Quarry LP bought a new stake in shares of MGIC Investment during the 1st quarter worth $38,000. Golden State Wealth Management LLC boosted its holdings in shares of MGIC Investment by 7,837.0% during the 1st quarter. Golden State Wealth Management LLC now owns 2,143 shares of the insurance provider's stock worth $53,000 after buying an additional 2,116 shares during the period. Finally, Headlands Technologies LLC boosted its holdings in shares of MGIC Investment by 619.2% during the 1st quarter. Headlands Technologies LLC now owns 2,280 shares of the insurance provider's stock worth $56,000 after buying an additional 1,963 shares during the period. 95.58% of the stock is owned by institutional investors.

Insiders Place Their Bets

In other news, COO Salvatore A. Miosi sold 30,000 shares of the stock in a transaction on 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 transaction, the chief operating officer owned 249,401 shares in the company, valued at approximately $6,539,294.22. This represents a 10.74% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, CEO Timothy J. Mattke sold 139,203 shares of the stock in a transaction 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 owned 1,100,994 shares of the company's stock, valued at approximately $29,220,380.76. This represents a 11.22% decrease in their position. The disclosure for this sale can be found here. 1.05% of the stock is owned by corporate insiders.

Analyst Ratings Changes

Several research firms recently issued reports on MTG. Barclays upped their price objective on shares of MGIC Investment from $26.00 to $27.00 and gave the stock an "equal weight" rating in a report on Tuesday, July 8th. Compass Point reaffirmed a "neutral" rating and set a $28.00 price objective (up from $27.00) on shares of MGIC Investment in a report on Friday, May 23rd. Finally, Keefe, Bruyette & Woods upped their price objective on shares of MGIC Investment from $26.00 to $27.00 and gave the stock a "market perform" rating in a report on Monday, July 7th. Five research analysts have rated the stock with a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, the stock has a consensus rating of "Reduce" and a consensus target price of $26.67.

MGIC Investment Price Performance

Shares of MGIC Investment stock opened at $28.39 on Tuesday. The company has a debt-to-equity ratio of 0.13, a current ratio of 1.46 and a quick ratio of 1.46. MGIC Investment Corporation has a fifty-two week low of $21.94 and a fifty-two week high of $28.71. The firm has a fifty day moving average price of $26.94 and a two-hundred day moving average price of $25.76. The company has a market cap of $6.54 billion, a PE ratio of 9.31, a price-to-earnings-growth ratio of 2.05 and a beta of 0.89.

MGIC Investment (NYSE:MTG - Get Free Report) last issued its quarterly earnings results on Wednesday, July 30th. The insurance provider reported $0.82 earnings per share for the quarter, beating analysts' consensus estimates 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 the consensus estimate of $306.25 million. During the same period in the prior year, the firm earned $0.77 EPS. The business's revenue was down .3% on a year-over-year basis. Analysts expect that MGIC Investment Corporation will post 2.71 EPS for the current year.

MGIC Investment Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Thursday, August 21st. Shareholders of record on Thursday, August 7th were issued a $0.15 dividend. This is a boost from MGIC Investment's previous quarterly dividend of $0.13. The ex-dividend date of this dividend was Thursday, August 7th. This represents a $0.60 dividend on an annualized basis and a yield of 2.1%. MGIC Investment's payout ratio is currently 19.67%.

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.

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