Fifth Third Bancorp Boosts Stake in MGIC Investment Corporation $MTG

Key Points

• Fifth Third Bancorp dramatically increased its stake in MGIC Investment by 3,278.4% in the first quarter, bringing its holdings to 93,110 shares worth about $2.44 million.
• MGIC Investment reported Q1 EPS of $0.76, beating estimates, though revenue came in slightly below expectations and fell 3% year over year. The company also authorized a $750 million share buyback and recently paid a $0.15 quarterly dividend.
• Insider selling was notable, with COO Salvatore A. Miosi and EVP Paula C. Maggio both reducing their holdings in separate transactions. Meanwhile, Wall Street’s overall view remains cautious, with a consensus rating of Hold and an average price target of $28.25.

Fifth Third Bancorp increased its stake in MGIC Investment Corporation (NYSE:MTG - Free Report) by 3,278.4% in the first quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The institutional investor owned 93,110 shares of the insurance provider's stock after purchasing an additional 90,354 shares during the quarter. Fifth Third Bancorp's holdings in MGIC Investment were worth $2,444,000 at the end of the most recent quarter.

Several other institutional investors and hedge funds also recently added to or reduced their stakes in the stock. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. purchased a new position in MGIC Investment in the 1st quarter valued at approximately $2,397,000. Goldman Sachs Group Inc. boosted its position in MGIC Investment by 6.7% during the first quarter. Goldman Sachs Group Inc. now owns 3,103,366 shares of the insurance provider's stock worth $76,901,000 after purchasing an additional 195,895 shares in the last quarter. Geneos Wealth Management Inc. grew its holdings in MGIC Investment by 88.0% in the first quarter. Geneos Wealth Management Inc. now owns 1,745 shares of the insurance provider's stock valued at $43,000 after purchasing an additional 817 shares during the last quarter. Sivia Capital Partners LLC acquired a new stake in MGIC Investment in the second quarter valued at $425,000. Finally, Northwestern Mutual Wealth Management Co. increased its position in shares of MGIC Investment by 18.9% in the second quarter. Northwestern Mutual Wealth Management Co. now owns 5,211 shares of the insurance provider's stock valued at $145,000 after buying an additional 830 shares in the last quarter. 95.58% of the stock is currently owned by institutional investors and hedge funds.

MGIC Investment Trading Down 0.9%

MGIC Investment stock opened at $29.06 on Wednesday. The stock has a 50-day moving average price of $26.81 and a 200 day moving average price of $26.90. MGIC Investment Corporation has a 52 week low of $24.69 and a 52 week high of $29.97. The stock has a market cap of $6.15 billion, a PE ratio of 9.23, a P/E/G ratio of 2.02 and a beta of 0.67. The company has a current ratio of 1.14, a quick ratio of 1.14 and a debt-to-equity ratio of 0.13.

MGIC Investment (NYSE:MTG - Get Free Report) last released its quarterly earnings results on Wednesday, April 29th. The insurance provider reported $0.76 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.73 by $0.03. The company had revenue of $297.08 million for the quarter, compared to analysts' expectations of $303.12 million. MGIC Investment had a net margin of 59.63% and a return on equity of 14.01%. The firm's revenue for the quarter was down 3.0% compared to the same quarter last year. During the same period last year, the company earned $0.75 EPS. Equities research analysts predict that MGIC Investment Corporation will post 3.05 earnings per share for the current fiscal year.

MGIC Investment declared that its board has authorized a stock buyback program on Thursday, April 23rd that allows the company to buyback $750.00 million in outstanding shares. This buyback authorization allows the insurance provider to purchase up to 12.4% of its stock through open market purchases. Stock buyback programs are usually a sign that the company's management believes its stock is undervalued.

MGIC Investment Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Thursday, May 21st. Investors of record on Wednesday, May 6th were given a dividend of $0.15 per share. The ex-dividend date was Wednesday, May 6th. This represents a $0.60 dividend on an annualized basis and a yield of 2.1%. MGIC Investment's dividend payout ratio (DPR) is 19.05%.

Insider Activity at MGIC Investment

In other MGIC Investment news, COO Salvatore A. Miosi sold 30,000 shares of the stock in a transaction on Monday, June 8th. The stock was sold at an average price of $25.38, for a total transaction of $761,400.00. Following the transaction, the chief operating officer owned 560,951 shares of the company's stock, valued at $14,236,936.38. This represents a 5.08% decrease in their position. The sale was disclosed in a document filed with the SEC, 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 firm's stock in a transaction 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 sale, the executive vice president owned 169,620 shares in the company, valued at $4,333,791. This trade represents a 10.99% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 1.34% of the stock is currently owned by insiders.

Wall Street Analyst Weigh In

MTG has been the subject of several research reports. Keefe, Bruyette & Woods lifted their price target on MGIC Investment from $28.00 to $29.00 and gave the stock a "market perform" rating in a research note on Friday, April 10th. Weiss Ratings upgraded shares of MGIC Investment from a "buy (b)" rating to a "buy (b+)" rating in a report on Tuesday, July 7th. Barclays reduced 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 report on Friday, May 1st. Finally, Royal Bank Of Canada assumed coverage on shares of MGIC Investment in a research report on Friday, May 22nd. They issued a "sector perform" rating and a $28.00 price target on the stock. One research analyst has rated the stock with a Buy rating and four have assigned a Hold rating to the company. According to MarketBeat, the company currently has an average rating of "Hold" and a consensus target price of $28.25.

About MGIC Investment

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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