Cubist Systematic Strategies LLC Invests $7.39 Million in MGIC Investment Corporation $MTG

Key Points

• Cubist Systematic Strategies LLC invested approximately $7.39 million in MGIC Investment Corporation, acquiring 298,185 shares during the first quarter of the year.
• Several hedge funds have also increased or initiated their stakes in MGIC Investment, with institutional ownership reaching 95.58% of the company's stock.
• MGIC Investment recently raised its quarterly dividend from $0.13 to $0.15 per share, reflecting a yield of 2.2%, and reported earnings per share of $0.82, exceeding analyst expectations.

Cubist Systematic Strategies LLC bought a new stake in MGIC Investment Corporation (NYSE:MTG - Free Report) in the 1st quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The firm bought 298,185 shares of the insurance provider's stock, valued at approximately $7,389,000. Cubist Systematic Strategies LLC owned about 0.13% of MGIC Investment as of its most recent filing with the Securities and Exchange Commission.

Several other institutional investors have also recently added to or reduced their stakes in MTG. Jane Street Group LLC increased its holdings in MGIC Investment by 5,891.9% in the 1st quarter. Jane Street Group LLC now owns 1,373,050 shares of the insurance provider's stock valued at $34,024,000 after purchasing an additional 1,350,135 shares during the last quarter. BNP Paribas Financial Markets grew its stake in shares of MGIC Investment by 259.4% in the fourth quarter. BNP Paribas Financial Markets now owns 1,105,399 shares of the insurance provider's stock worth $26,209,000 after acquiring an additional 797,852 shares in the last quarter. JPMorgan Chase & Co. grew its stake in shares of MGIC Investment by 4.8% in the first quarter. JPMorgan Chase & Co. now owns 16,162,180 shares of the insurance provider's stock worth $400,499,000 after acquiring an additional 743,212 shares in the last quarter. Citigroup Inc. grew its stake in shares of MGIC Investment by 259.1% in the first quarter. Citigroup Inc. now owns 902,982 shares of the insurance provider's stock worth $22,376,000 after acquiring an additional 651,549 shares in the last quarter. Finally, Nuveen LLC acquired a new position in shares of MGIC Investment in the first quarter worth $13,266,000. Institutional investors and hedge funds own 95.58% of the company's stock.

Insiders Place Their Bets

In other 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 directly 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 filing with the Securities & Exchange Commission, which is accessible 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 shares were sold at an average price of $26.54, for a total transaction of $3,694,447.62. Following the completion of the sale, the chief executive officer directly owned 1,100,994 shares of the company's stock, valued at $29,220,380.76. The trade was a 11.22% decrease in their ownership of the stock. The disclosure for this sale can be found here. 1.05% of the stock is owned by insiders.

MGIC Investment Stock Performance

MTG traded down $0.07 on Friday, reaching $28.37. The company had a trading volume of 1,659,191 shares, compared to its average volume of 1,598,909. MGIC Investment Corporation has a 1 year low of $21.94 and a 1 year high of $28.71. The stock has a market capitalization of $6.54 billion, a PE ratio of 9.30, a P/E/G ratio of 2.05 and a beta of 0.89. The company has a quick ratio of 1.46, a current ratio of 1.46 and a debt-to-equity ratio of 0.13. The stock has a 50-day moving average price of $26.93 and a 200-day moving average price of $25.72.

MGIC Investment (NYSE:MTG - Get Free Report) last announced 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 analysts' expectations of $306.25 million. During the same period in the previous year, the company earned $0.77 earnings per share. MGIC Investment's quarterly revenue was down .3% compared to the same quarter last year. As a group, research analysts forecast that MGIC Investment Corporation will post 2.71 EPS for the current fiscal year.

MGIC Investment Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Thursday, August 21st. Investors of record on Thursday, August 7th were given a $0.15 dividend. This represents a $0.60 dividend on an annualized basis and a yield of 2.1%. 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. MGIC Investment's dividend payout ratio is presently 19.67%.

Analysts Set New Price Targets

Several equities analysts have commented on the stock. Compass Point restated a "neutral" rating and issued a $28.00 price target (up previously from $27.00) on shares of MGIC Investment in a research note on Friday, May 23rd. Barclays boosted their price target on shares of MGIC Investment from $26.00 to $27.00 and gave the stock an "equal weight" rating in a research note on Tuesday, July 8th. Finally, Keefe, Bruyette & Woods boosted their price target on shares of MGIC Investment from $26.00 to $27.00 and gave the stock a "market perform" rating in a research note on Monday, July 7th. Five investment analysts have rated the stock with a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the stock currently has an average rating of "Reduce" and an average target price of $26.67.

MGIC Investment Company 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.