Graham Capital Management L.P. Takes $4.26 Million Position in MGIC Investment Corporation $MTG

Key Points

• Graham Capital Management L.P. acquired 171,810 shares of MGIC Investment Corporation, valued at approximately $4.26 million, representing about 0.07% ownership at the end of the last quarter.
• MGIC Investment announced a quarterly dividend increase to $0.15, up from $0.13, which translates to an annualized yield of 2.2%.
• After reporting better-than-expected earnings of $0.82 per share, MGIC Investment's stock has seen active interest from institutional investors, with over 95% of its shares held by hedge funds.

Graham Capital Management L.P. acquired a new stake in MGIC Investment Corporation (NYSE:MTG - Free Report) in the first quarter, according to the company in its most recent 13F filing with the SEC. The institutional investor acquired 171,810 shares of the insurance provider's stock, valued at approximately $4,257,000. Graham Capital Management L.P. owned 0.07% of MGIC Investment at the end of the most recent reporting period.

Other institutional investors have also recently made changes to their positions in the company. Brooklyn Investment Group increased its position in shares of MGIC Investment by 15.5% during the 1st quarter. Brooklyn Investment Group now owns 3,094 shares of the insurance provider's stock valued at $77,000 after purchasing an additional 416 shares during the last quarter. Signaturefd LLC increased its position in shares of MGIC Investment by 1.9% during the 1st quarter. Signaturefd LLC now owns 22,112 shares of the insurance provider's stock valued at $548,000 after purchasing an additional 421 shares during the last quarter. PNC Financial Services Group Inc. increased its position in shares of MGIC Investment by 4.2% during the 1st quarter. PNC Financial Services Group Inc. now owns 10,894 shares of the insurance provider's stock valued at $270,000 after purchasing an additional 437 shares during the last quarter. Fifth Third Bancorp increased its position 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 valued at $68,000 after purchasing an additional 461 shares during the last quarter. Finally, NorthCrest Asset Manangement LLC increased its position in shares of MGIC Investment by 1.3% during the 1st quarter. NorthCrest Asset Manangement LLC now owns 41,718 shares of the insurance provider's stock valued at $1,034,000 after purchasing an additional 524 shares during the last quarter. Hedge funds and other institutional investors own 95.58% of the company's stock.

Insider Activity at MGIC Investment

In other MGIC Investment news, COO Salvatore A. Miosi sold 30,000 shares of the business's stock in a transaction dated Friday, August 1st. The stock was sold at an average price of $26.22, for a total transaction of $786,600.00. Following the sale, the chief operating officer 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 transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CEO Timothy J. Mattke sold 139,203 shares of MGIC Investment 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 completion of the transaction, the chief executive officer owned 1,100,994 shares of the company's stock, valued at approximately $29,220,380.76. This represents a 11.22% decrease in their position. The disclosure for this sale can be found here. 1.05% of the stock is owned by corporate insiders.

Analyst Upgrades and Downgrades

Several equities analysts recently issued reports on the company. Barclays raised their price target on MGIC Investment from $26.00 to $27.00 and gave the stock an "equal weight" rating in a research report on Tuesday, July 8th. Compass Point restated a "neutral" rating and set a $28.00 price target (up from $27.00) on shares of MGIC Investment in a research report on Friday, May 23rd. Finally, Keefe, Bruyette & Woods raised their price target on MGIC Investment from $26.00 to $27.00 and gave the stock a "market perform" rating in a research report on Monday, July 7th. Five equities research 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 stock presently has a consensus rating of "Reduce" and an average target price of $26.67.

MGIC Investment Stock Performance

NYSE:MTG traded down $0.07 during mid-day trading on Friday, hitting $28.37. 1,659,191 shares of the company traded hands, compared to its average volume of 2,132,803. The stock's fifty day moving average price is $26.91 and its 200-day moving average price is $25.69. MGIC Investment Corporation has a one year low of $21.94 and a one year high of $28.71. 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 firm has a market cap of $6.54 billion, a price-to-earnings ratio of 9.30, a price-to-earnings-growth ratio of 2.03 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, topping analysts' consensus estimates of $0.70 by $0.12. The company had revenue of $304.25 million for the quarter, compared to the consensus estimate of $306.25 million. MGIC Investment had a return on equity of 14.73% and a net margin of 62.58%.The firm's revenue for the quarter was down .3% on a year-over-year basis. During the same period in the previous year, the business earned $0.77 earnings per share. Research analysts anticipate that MGIC Investment Corporation will post 2.71 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 21st. Investors of record on Thursday, August 7th were paid a $0.15 dividend. This represents a $0.60 annualized dividend and a yield of 2.1%. This is an increase from MGIC Investment's previous quarterly dividend of $0.13. The ex-dividend date of this dividend was Thursday, August 7th. MGIC Investment's payout ratio is currently 19.67%.

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.