Heartland Advisors Inc. Acquires 26,124 Shares of MGIC Investment Corporation (NYSE:MTG)

Key Points

• Heartland Advisors Inc. increased its holdings in MGIC Investment Corporation by 3.8% during Q1, acquiring an additional 26,124 shares, bringing their total to 713,994 shares.
• MGIC Investment's Board of Directors has initiated a $750 million share repurchase plan, indicating they believe the stock is undervalued.
• The company reported a net margin of 63.49% and earnings per share of $0.75, exceeding analysts' expectations of $0.66 for the last quarter.

Heartland Advisors Inc. increased its holdings in MGIC Investment Corporation (NYSE:MTG - Free Report) by 3.8% during the 1st quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund owned 713,994 shares of the insurance provider's stock after purchasing an additional 26,124 shares during the quarter. MGIC Investment makes up approximately 1.0% of Heartland Advisors Inc.'s holdings, making the stock its 20th largest holding. Heartland Advisors Inc. owned about 0.30% of MGIC Investment worth $17,693,000 at the end of the most recent quarter.

Other large investors also recently modified their holdings of the company. KBC Group NV boosted its position in MGIC Investment by 10.2% during the 1st quarter. KBC Group NV now owns 11,417 shares of the insurance provider's stock valued at $283,000 after acquiring an additional 1,060 shares in the last quarter. GAMMA Investing LLC boosted its position in MGIC Investment by 39.1% during the 1st quarter. GAMMA Investing LLC now owns 6,068 shares of the insurance provider's stock valued at $150,000 after acquiring an additional 1,705 shares in the last quarter. Cerity Partners LLC boosted its position in MGIC Investment by 59.2% during the 1st quarter. Cerity Partners LLC now owns 78,307 shares of the insurance provider's stock valued at $1,940,000 after acquiring an additional 29,104 shares in the last quarter. Allspring Global Investments Holdings LLC boosted its position in MGIC Investment by 50.1% during the 1st quarter. Allspring Global Investments Holdings LLC now owns 16,147 shares of the insurance provider's stock valued at $406,000 after acquiring an additional 5,393 shares in the last quarter. Finally, Golden State Wealth Management LLC boosted its position in MGIC Investment by 7,837.0% during the 1st quarter. Golden State Wealth Management LLC now owns 2,143 shares of the insurance provider's stock valued at $53,000 after acquiring an additional 2,116 shares in the last quarter. 95.58% of the stock is owned by institutional investors.

Insider Activity

In other news, EVP Paula C. Maggio sold 20,000 shares of the business's stock in a transaction on Friday, May 30th. The shares were sold at an average price of $26.49, for a total transaction of $529,800.00. Following the completion of the sale, the executive vice president owned 157,395 shares of the company's stock, valued at $4,169,393.55. The trade was a 11.27% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. 1.05% of the stock is currently owned by insiders.

MGIC Investment Price Performance

Shares of NYSE MTG opened at $25.56 on Friday. MGIC Investment Corporation has a twelve month low of $21.94 and a twelve month high of $28.67. The firm has a market cap of $6.07 billion, a P/E ratio of 8.49, a PEG ratio of 2.76 and a beta of 0.89. The company has a 50 day moving average of $26.58 and a 200 day moving average of $25.16. The company has a quick ratio of 1.25, a current ratio of 1.25 and a debt-to-equity ratio of 0.13.

MGIC Investment (NYSE:MTG - Get Free Report) last announced its quarterly earnings data on Wednesday, April 30th. The insurance provider reported $0.75 earnings per share for the quarter, topping analysts' consensus estimates of $0.66 by $0.09. MGIC Investment had a net margin of 63.49% and a return on equity of 14.96%. The company had revenue of $306.23 million during the quarter, compared to analyst estimates of $306.66 million. During the same period in the previous year, the business earned $0.65 EPS. The firm's revenue for the quarter was up 4.0% on a year-over-year basis. As a group, research analysts expect that MGIC Investment Corporation will post 2.71 EPS for the current fiscal year.

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

Analyst Ratings Changes

Several analysts have weighed in on the company. Compass Point reaffirmed a "neutral" rating and set a $28.00 price objective (up from $27.00) on shares of MGIC Investment in a research report on Friday, May 23rd. Barclays lifted their price objective on MGIC Investment from $26.00 to $27.00 and gave the company an "equal weight" rating in a research report on Tuesday, July 8th. Finally, Keefe, Bruyette & Woods lifted their target price on shares of MGIC Investment from $26.00 to $27.00 and gave the company a "market perform" rating in a report on Monday, July 7th. One analyst has rated the stock with a sell rating, five have given a hold rating and two have given a buy rating to the company's stock. According to MarketBeat.com, the company currently has an average rating of "Hold" and a consensus target price of $26.88.

About MGIC Investment

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.

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