Hsbc Holdings PLC Cuts Stake in MGIC Investment Corporation $MTG

Key Points

• Hsbc Holdings PLC has reduced its stake in MGIC Investment Corporation by 45.9%, selling 108,876 shares, and now holds approximately 0.05% of the company.
• Several institutional investors, including JPMorgan Chase & Co. and LSV Asset Management, have increased their holdings in MGIC Investment, indicating strong institutional interest with 95.58% of the stock owned by such investors.
• MGIC Investment recently announced a dividend increase to $0.15 per share, up from $0.13, reflecting a payout ratio of 19.67% and a yield of 2.2% for shareholders.

Hsbc Holdings PLC lessened its position in shares of MGIC Investment Corporation (NYSE:MTG - Free Report) by 45.9% during the first quarter, according to its most recent filing with the Securities & Exchange Commission. The fund owned 128,138 shares of the insurance provider's stock after selling 108,876 shares during the quarter. Hsbc Holdings PLC owned about 0.05% of MGIC Investment worth $3,153,000 as of its most recent SEC filing.

A number of other hedge funds have also recently added to or reduced their stakes in the company. JPMorgan Chase & Co. grew its stake in MGIC Investment by 4.8% during the 1st quarter. JPMorgan Chase & Co. now owns 16,162,180 shares of the insurance provider's stock worth $400,499,000 after buying an additional 743,212 shares during the last quarter. LSV Asset Management grew its stake in MGIC Investment by 2.9% during the 1st quarter. LSV Asset Management now owns 10,888,437 shares of the insurance provider's stock worth $269,815,000 after buying an additional 310,095 shares during the last quarter. Northern Trust Corp grew its stake in MGIC Investment by 6.5% during the 4th quarter. Northern Trust Corp now owns 4,524,277 shares of the insurance provider's stock worth $107,271,000 after buying an additional 277,746 shares during the last quarter. Caisse DE Depot ET Placement DU Quebec grew its stake in MGIC Investment by 292.0% during the 4th quarter. Caisse DE Depot ET Placement DU Quebec now owns 2,072,629 shares of the insurance provider's stock worth $49,142,000 after buying an additional 1,543,908 shares during the last quarter. Finally, NewEdge Wealth LLC grew its stake in MGIC Investment by 4.0% during the 1st quarter. NewEdge Wealth LLC now owns 1,911,085 shares of the insurance provider's stock worth $47,357,000 after buying an additional 73,264 shares during the last quarter. Hedge funds and other institutional investors own 95.58% of the company's stock.

Analyst Ratings Changes

Several analysts have commented 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 note on Friday, May 23rd. Barclays upped their price objective on MGIC Investment from $26.00 to $27.00 and gave the company an "equal weight" rating in a research note on Tuesday, July 8th. Finally, Keefe, Bruyette & Woods upped their price objective on MGIC Investment from $26.00 to $27.00 and gave the company 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 given a Sell rating to the company's stock. According to data from MarketBeat.com, the company has an average rating of "Reduce" and an average target price of $26.67.

Insider Activity

In other MGIC Investment news, 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 value of $3,694,447.62. Following the sale, the chief executive officer owned 1,100,994 shares of the company's stock, valued at $29,220,380.76. This represents a 11.22% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, COO Salvatore A. Miosi sold 30,000 shares of MGIC Investment 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 of the company's stock, valued at approximately $6,539,294.22. This trade represents a 10.74% decrease in their ownership of the stock. The disclosure for this sale can be found here. 1.41% of the stock is owned by corporate insiders.

MGIC Investment Stock Performance

MTG traded up $0.13 during trading on Monday, reaching $27.81. The company's stock had a trading volume of 1,578,097 shares, compared to its average volume of 1,787,920. MGIC Investment Corporation has a 52-week low of $21.94 and a 52-week high of $28.67. The company's fifty day moving average price is $26.89 and its 200-day moving average price is $25.63. The company has a market capitalization of $6.41 billion, a price-to-earnings ratio of 9.12, a price-to-earnings-growth ratio of 2.01 and a beta of 0.89. The company has a debt-to-equity ratio of 0.13, a quick ratio of 1.46 and a current ratio of 1.46.

MGIC Investment (NYSE:MTG - Get Free Report) last issued its earnings results on Wednesday, July 30th. The insurance provider reported $0.82 earnings per share (EPS) 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 company had revenue of $304.25 million during the quarter, compared to analysts' expectations of $306.25 million. During the same period last year, the company posted $0.77 earnings per share. The firm's quarterly revenue was down .3% compared to the same quarter last year. On average, equities analysts forecast that MGIC Investment Corporation will post 2.71 earnings per share for the current fiscal year.

MGIC Investment Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Thursday, August 21st. Shareholders of record on Thursday, August 7th were issued a $0.15 dividend. This represents a $0.60 annualized dividend and a dividend yield of 2.2%. 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 payout ratio is currently 19.67%.

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.