Caxton Associates LLP Invests $1.75 Million 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 shares of MGIC Investment Corporation (NYSE:MTG - Free Report) in the first quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor bought 70,717 shares of the insurance provider's stock, valued at approximately $1,752,000.

Other large investors have also modified their holdings of the company. WPG Advisers LLC purchased a new stake in shares of MGIC Investment during the first quarter worth $26,000. Cullen Frost Bankers Inc. purchased a new stake in shares of MGIC Investment during the first quarter worth $33,000. Quarry LP purchased a new stake in shares of MGIC Investment during the first quarter worth $38,000. Golden State Wealth Management LLC boosted its position 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 valued at $53,000 after acquiring an additional 2,116 shares during the last quarter. Finally, Headlands Technologies LLC boosted its position 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 valued at $56,000 after acquiring an additional 1,963 shares during the last quarter. Hedge funds and other institutional investors own 95.58% of the company's stock.

Analyst Upgrades and Downgrades

Several brokerages have recently weighed in on MTG. Keefe, Bruyette & Woods boosted their price target on shares of MGIC Investment from $26.00 to $27.00 and gave the company a "market perform" rating in a research report on Monday, July 7th. Barclays boosted their price target on shares of MGIC Investment from $26.00 to $27.00 and gave the company an "equal weight" rating in a research report on Tuesday, July 8th. Finally, Compass Point reissued a "neutral" rating and set a $28.00 price target (up previously from $27.00) on shares of MGIC Investment in a research report on Friday, May 23rd. Five analysts have rated the stock with a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat.com, the company currently has a consensus rating of "Reduce" and an average target price of $26.67.

Insider Transactions at MGIC Investment

In other MGIC Investment news, 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 value of $3,694,447.62. Following the transaction, the chief executive officer owned 1,100,994 shares of the company's stock, valued at $29,220,380.76. This represents a 11.22% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this link. Also, 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 transaction of $786,600.00. Following the completion of the transaction, the chief operating officer directly owned 249,401 shares in the company, valued at $6,539,294.22. The trade was a 10.74% decrease in their position. The disclosure for this sale can be found here. Corporate insiders own 1.05% of the company's stock.

MGIC Investment Trading Down 1.7%

NYSE MTG traded down $0.48 during trading hours on Friday, reaching $28.44. The company had a trading volume of 1,538,179 shares, compared to its average volume of 1,384,083. The stock has a 50-day moving average of $26.95 and a 200 day moving average of $25.88. MGIC Investment Corporation has a 1-year low of $21.94 and a 1-year high of $28.98. The company has a current ratio of 1.46, a quick ratio of 1.46 and a debt-to-equity ratio of 0.13. The stock has a market capitalization of $6.56 billion, a P/E ratio of 9.32, a price-to-earnings-growth ratio of 2.06 and a beta of 0.89.

MGIC Investment (NYSE:MTG - Get Free Report) last posted its earnings results on Wednesday, July 30th. The insurance provider reported $0.82 EPS 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 company had revenue of $304.25 million for the quarter, compared to analysts' expectations of $306.25 million. During the same quarter in the prior year, the company posted $0.77 earnings per share. MGIC Investment's revenue for the quarter was down .3% compared to the same quarter last year. As a group, research analysts anticipate that MGIC Investment Corporation will post 2.71 earnings per share for the current fiscal year.

MGIC Investment Increases Dividend

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