Connor Clark & Lunn Investment Management Ltd. Makes New Investment in MGIC Investment Corporation $MTG

Key Points

• Connor Clark & Lunn Investment Management purchased 579,689 shares of MGIC Investment worth approximately $16.3 million, representing about 0.28% of the company. Institutional investors and hedge funds collectively own 95.58% of MTG.
• MGIC Investment reported quarterly EPS of $0.87, beating estimates of $0.76, while revenue of $295.4 million declined 2.9% year over year. The company increased its quarterly dividend to $0.17 per share, equivalent to a 2.2% yield.
• Shares opened at $31.27, near their 52-week high, and analysts maintain a “Moderate Buy” consensus with an average price target of $30.60; targets range from $28 to $35.

Connor Clark & Lunn Investment Management Ltd. purchased a new stake in MGIC Investment Corporation (NYSE:MTG - Free Report) in the second quarter, according to its most recent disclosure with the Securities and Exchange Commission. The institutional investor purchased 579,689 shares of the insurance provider's stock, valued at approximately $16,347,000. Connor Clark & Lunn Investment Management Ltd. owned about 0.28% of MGIC Investment at the end of the most recent reporting period.

Other hedge funds have also modified their holdings of the company. Newbridge Financial Services Group Inc. bought a new position in MGIC Investment in the third quarter valued at approximately $28,000. SBI Securities Co. Ltd. increased its position in shares of MGIC Investment by 40.3% during the fourth quarter. SBI Securities Co. Ltd. now owns 1,461 shares of the insurance provider's stock worth $43,000 after acquiring an additional 420 shares in the last quarter. Geneos Wealth Management Inc. increased its position in shares of MGIC Investment by 88.0% during the first quarter. Geneos Wealth Management Inc. now owns 1,745 shares of the insurance provider's stock worth $43,000 after acquiring an additional 817 shares in the last quarter. Mitsubishi UFJ Asset Management Co. Ltd. bought a new stake in shares of MGIC Investment during the second quarter worth $62,000. Finally, Harbor Investment Advisory LLC raised its holdings in shares of MGIC Investment by 613.0% during the second quarter. Harbor Investment Advisory LLC now owns 2,574 shares of the insurance provider's stock worth $73,000 after acquiring an additional 2,213 shares during the period. 95.58% of the stock is currently owned by institutional investors and hedge funds.

MGIC Investment Stock Up 0.6%

NYSE MTG opened at $31.27 on Wednesday. The company has a current ratio of 1.19, a quick ratio of 1.19 and a debt-to-equity ratio of 0.13. The company has a market cap of $6.41 billion, a price-to-earnings ratio of 9.77, a PEG ratio of 0.79 and a beta of 0.66. The company has a 50 day moving average of $29.21 and a 200-day moving average of $27.47. 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 released its earnings results on Wednesday, July 29th. The insurance provider reported $0.87 earnings per share for the quarter, topping the consensus estimate of $0.76 by $0.11. The firm had revenue of $295.39 million during the quarter, compared to analysts' expectations of $297.54 million. MGIC Investment had a return on equity of 13.90% and a net margin of 59.20%.The company's quarterly revenue was down 2.9% on a year-over-year basis. During the same period in the prior year, the company earned $0.82 earnings per share. On average, equities research analysts expect that MGIC Investment Corporation will post 3.24 earnings per share for the current fiscal year.

MGIC Investment Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Thursday, August 20th. Stockholders of record on Wednesday, August 5th were given a dividend of $0.17 per share. This represents a $0.68 annualized dividend and a dividend yield of 2.2%. This is a boost from MGIC Investment's previous quarterly dividend of $0.15. The ex-dividend date was Wednesday, August 5th. MGIC Investment's dividend payout ratio is currently 21.25%.

Wall Street Analysts Forecast Growth

A number of analysts have recently commented on MTG shares. Royal Bank Of Canada boosted their price objective on shares of MGIC Investment from $28.00 to $32.00 and gave the stock a "sector perform" rating in a research report on Friday, July 31st. Keefe, Bruyette & Woods lifted their price target on shares of MGIC Investment from $29.00 to $30.00 and gave the company a "market perform" rating in a research note on Friday, July 31st. Barclays cut their price target 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. Roth Capital restated a "buy" rating and set a $35.00 price objective on shares of MGIC Investment in a research note on Thursday, July 30th. Finally, Weiss Ratings upgraded shares of MGIC Investment from a "buy (b+)" rating to a "buy (a-)" rating in a research note on Wednesday, August 19th. One research analyst has rated the stock with a Strong Buy rating, one has assigned a Buy rating and four have given a Hold rating to the stock. Based on data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $30.60.

Insiders Place Their Bets

In other news, COO Salvatore A. Miosi sold 30,000 shares of the business's stock in a transaction dated Monday, June 8th. The stock was sold at an average price of $25.38, for a total value of $761,400.00. Following the transaction, the chief operating officer directly owned 560,951 shares of the company's stock, valued at $14,236,936.38. The trade was a 5.08% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through 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 that occurred on Friday, May 29th. The stock was sold at an average price of $25.55, for a total value of $534,940.35. Following the transaction, the executive vice president owned 169,620 shares in the company, valued at $4,333,791. The trade was a 10.99% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 70,937 shares of company stock valued at $1,902,340 in the last three months. 1.34% of the stock is owned by insiders.

MGIC Investment Company Profile

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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