Invesco Ltd. Sells 1,341,230 Shares of MGIC Investment Corporation (NYSE:MTG)

Key Points

• Invesco Ltd. has reduced its stake in MGIC Investment Corporation by 28.1%, selling 1,341,230 shares in the first quarter, and now holds approximately 1.44% of the company's stock, valued at $84.87 million.
• MGIC Investment recently increased its quarterly dividend from $0.13 to $0.15, with a yield of 2.2%, signaling a commitment to returning value to shareholders.
• The company's stock is currently rated as a "Hold" by several analysts, with a consensus price target of $26.67 and recent earnings surpassing expectations.

Invesco Ltd. trimmed its position in MGIC Investment Corporation (NYSE:MTG - Free Report) by 28.1% in the first quarter, according to its most recent filing with the SEC. The fund owned 3,424,965 shares of the insurance provider's stock after selling 1,341,230 shares during the period. Invesco Ltd. owned 1.44% of MGIC Investment worth $84,871,000 as of its most recent filing with the SEC.

Other large investors also recently modified their holdings of the company. Cullen Frost Bankers Inc. bought a new position in shares of MGIC Investment in the 1st quarter valued at $33,000. Golden State Wealth Management LLC raised 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 worth $53,000 after purchasing an additional 2,116 shares during the last quarter. Headlands Technologies LLC raised its position in 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 purchasing an additional 1,963 shares during the last quarter. UMB Bank n.a. raised its position in 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 purchasing an additional 1,011 shares during the last quarter. Finally, Fifth Third Bancorp raised its position in 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 purchasing an additional 461 shares during the last quarter. 95.58% of the stock is currently owned by institutional investors.

MGIC Investment Stock Performance

MTG stock opened at $27.52 on Friday. The stock has a 50-day moving average price of $26.68 and a 200-day moving average price of $25.43. MGIC Investment Corporation has a 1-year low of $21.94 and a 1-year 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 cap of $6.34 billion, a PE ratio of 9.02, a price-to-earnings-growth ratio of 2.04 and a beta of 0.90.

MGIC Investment (NYSE:MTG - Get Free Report) last posted its quarterly earnings data on Wednesday, July 30th. The insurance provider reported $0.82 earnings per share for the quarter, topping 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 during the quarter, compared to analyst estimates of $306.25 million. During the same period last year, the company posted $0.77 EPS. The business's quarterly revenue was down .3% on a year-over-year basis. As a group, equities research analysts expect that MGIC Investment Corporation will post 2.71 earnings per share for the current year.

MGIC Investment Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, August 21st. Stockholders of record on Thursday, August 7th will be paid a $0.15 dividend. The ex-dividend date is Thursday, August 7th. 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. MGIC Investment's dividend payout ratio (DPR) is 19.67%.

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

Wall Street Analyst Weigh In

Several research analysts recently issued reports on MTG shares. Compass Point reaffirmed a "neutral" rating and set a $28.00 target price (up from $27.00) on shares of MGIC Investment in a research report on Friday, May 23rd. Keefe, Bruyette & Woods raised their target price 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. Finally, Barclays raised their target price 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. One research analyst has rated the stock with a sell rating and five have issued a hold rating to the company's stock. According to data from MarketBeat, the stock has a consensus rating of "Hold" and a consensus price target of $26.67.

Insider Activity

In other news, EVP Paula C. Maggio sold 20,000 shares of the firm's stock in a transaction dated Friday, May 30th. The stock was sold at an average price of $26.49, for a total value of $529,800.00. Following the completion of the sale, the executive vice president directly owned 157,395 shares in the company, valued at $4,169,393.55. This trade represents a 11.27% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this link. Also, COO Salvatore A. Miosi sold 30,000 shares of the firm's stock in a transaction dated Friday, August 1st. The shares were sold at an average price of $26.22, for a total value of $786,600.00. Following the completion of the sale, the chief operating officer owned 249,401 shares of the company's stock, valued at approximately $6,539,294.22. This represents a 10.74% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 189,203 shares of company stock worth $5,010,848 in the last three months. Company insiders own 1.05% of the company's stock.

MGIC Investment 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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.