Element Capital Management LLC Acquires Shares of 110,193 MGIC Investment Corporation $MTG

Key Points

• Element Capital Management LLC invested approximately $2.73 million in MGIC Investment Corporation, acquiring 110,193 shares in the first quarter of the year.
• MGIC Investment announced a new quarterly dividend of $0.15 per share, up from the previous $0.13, indicating a positive change in its dividend policy.
• The company also approved a $750 million share repurchase program, allowing it to buy back up to 12.5% of its outstanding stock, which is often viewed as a sign of management believing the stock is undervalued.

Element Capital Management LLC bought a new position in shares of MGIC Investment Corporation (NYSE:MTG - Free Report) during the 1st quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor bought 110,193 shares of the insurance provider's stock, valued at approximately $2,731,000.

Several other hedge funds have also recently bought and sold shares of MTG. Cullen Frost Bankers Inc. acquired a new position in MGIC Investment during the first quarter worth $33,000. Golden State Wealth Management LLC increased its position in MGIC Investment by 7,837.0% during the first 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 last quarter. 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. UMB Bank n.a. boosted its holdings in shares of MGIC Investment by 61.3% during the 1st quarter. UMB Bank n.a. now owns 2,660 shares of the insurance provider's stock worth $66,000 after buying an additional 1,011 shares during the period. Finally, Fifth Third Bancorp boosted its holdings in shares of MGIC Investment by 20.1% during the 1st quarter. Fifth Third Bancorp now owns 2,749 shares of the insurance provider's stock worth $68,000 after buying an additional 461 shares during the period. 95.58% of the stock is owned by institutional investors and hedge funds.

MGIC Investment Stock Performance

MTG traded up $0.0350 on Wednesday, hitting $27.4950. 2,069,863 shares of the stock traded hands, compared to its average volume of 2,067,659. MGIC Investment Corporation has a 52 week low of $21.94 and a 52 week high of $28.67. 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 firm has a market capitalization of $6.34 billion, a PE ratio of 9.01, a P/E/G ratio of 2.01 and a beta of 0.90. The business has a fifty day moving average price of $26.75 and a two-hundred day moving average price of $25.47.

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 (EPS) for the quarter, beating the consensus estimate of $0.70 by $0.12. MGIC Investment had a return on equity of 14.73% and a net margin of 62.58%.The firm had revenue of $304.25 million for the quarter, compared to analyst estimates of $306.25 million. During the same period in the previous year, the company posted $0.77 earnings per share. The company's quarterly revenue was down .3% compared to the same quarter last year. On average, research analysts predict that MGIC Investment Corporation will post 2.71 EPS for the current fiscal year.

MGIC Investment announced that its Board of Directors has authorized a stock repurchase plan on Thursday, April 24th that allows the company to buyback $750.00 million in outstanding shares. This buyback authorization allows the insurance provider to repurchase up to 12.5% of its stock through open market purchases. Stock buyback plans are generally an indication that the company's board believes its shares are undervalued.

MGIC Investment Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, August 21st. Shareholders of record on Thursday, August 7th will be 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 is Thursday, August 7th. This represents a $0.60 annualized dividend and a yield of 2.2%. MGIC Investment's payout ratio is presently 19.67%.

Insider Buying and Selling at MGIC Investment

In other news, COO Salvatore A. Miosi sold 30,000 shares of MGIC Investment 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 sale, the chief operating officer directly 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 sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, EVP Paula C. Maggio sold 20,000 shares of MGIC Investment stock in a transaction dated Friday, May 30th. The shares were sold at an average price of $26.49, for a total transaction of $529,800.00. Following the sale, the executive vice president owned 157,395 shares in the company, valued at approximately $4,169,393.55. This trade represents a 11.27% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 189,203 shares of company stock valued at $5,010,848 in the last 90 days. 1.05% of the stock is currently owned by company insiders.

Analyst Ratings Changes

Several research firms recently issued reports on MTG. 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. 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, 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. Five equities research analysts have rated the stock with a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, MGIC Investment presently has an average rating of "Reduce" and a consensus 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.