Invesco Ltd. Sells 1,341,230 Shares of MGIC Investment Corporation $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. lowered its stake in MGIC Investment Corporation (NYSE:MTG - Free Report) by 28.1% during the 1st quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The firm owned 3,424,965 shares of the insurance provider's stock after selling 1,341,230 shares during the period. Invesco Ltd. owned approximately 1.44% of MGIC Investment worth $84,871,000 as of its most recent SEC filing.

Several other large investors have also recently modified their holdings of MTG. Pandora Wealth Inc. purchased a new position in MGIC Investment during the 1st quarter valued at about $121,000. Covestor Ltd increased its holdings in MGIC Investment by 30.0% during the 1st quarter. Covestor Ltd now owns 4,061 shares of the insurance provider's stock valued at $101,000 after purchasing an additional 937 shares during the period. JPMorgan Chase & Co. increased its holdings 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 valued at $400,499,000 after purchasing an additional 743,212 shares during the period. Measured Wealth Private Client Group LLC increased its holdings in MGIC Investment by 4.0% during the 1st quarter. Measured Wealth Private Client Group LLC now owns 60,215 shares of the insurance provider's stock valued at $1,492,000 after purchasing an additional 2,323 shares during the period. Finally, Citigroup Inc. increased its holdings in MGIC Investment by 259.1% during the 1st quarter. Citigroup Inc. now owns 902,982 shares of the insurance provider's stock valued at $22,376,000 after purchasing an additional 651,549 shares during the period. Hedge funds and other institutional investors own 95.58% of the company's stock.

MGIC Investment Stock Up 0.1%

Shares of MTG stock traded up $0.0250 during midday trading on Thursday, reaching $27.5250. 1,301,011 shares of the stock were exchanged, compared to its average volume of 2,085,687. MGIC Investment Corporation has a 1 year low of $21.94 and a 1 year high of $28.67. The company's 50 day moving average is $26.76 and its two-hundred day moving average is $25.48. 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 $6.35 billion, a PE ratio of 9.02, a price-to-earnings-growth ratio of 1.99 and a beta of 0.90.

MGIC Investment (NYSE:MTG - Get Free Report) last posted its earnings results on Wednesday, July 30th. The insurance provider reported $0.82 earnings per share for the quarter, topping analysts' consensus estimates 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 for the quarter, compared to the consensus estimate of $306.25 million. During the same quarter in the prior year, the business earned $0.77 EPS. The business's revenue for the quarter was down .3% on a year-over-year basis. On average, equities research analysts predict that MGIC Investment Corporation will post 2.71 EPS for the current year.

MGIC Investment announced that its Board of Directors has approved a share repurchase program on Thursday, April 24th that authorizes the company to repurchase $750.00 million in outstanding shares. This repurchase authorization authorizes the insurance provider to purchase up to 12.5% of its shares through open market purchases. Shares repurchase programs are generally an indication that the company's leadership believes its stock is undervalued.

MGIC Investment Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, August 21st. Stockholders of record on Thursday, August 7th will be given a $0.15 dividend. The ex-dividend date of this dividend is Thursday, August 7th. This represents a $0.60 dividend on an annualized basis and a dividend yield of 2.2%. This is an increase from MGIC Investment's previous quarterly dividend of $0.13. MGIC Investment's payout ratio is presently 19.67%.

Insider Transactions at MGIC Investment

In other news, COO Salvatore A. Miosi sold 30,000 shares of the business's stock in a transaction that occurred on Friday, August 1st. The stock was sold at an average price of $26.22, for a total value of $786,600.00. Following the sale, the chief operating officer directly owned 249,401 shares of the company's stock, valued at $6,539,294.22. The trade was a 10.74% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Also, EVP Paula C. Maggio sold 20,000 shares of the business's stock in a transaction that occurred on 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 approximately $4,169,393.55. This represents a 11.27% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 189,203 shares of company stock valued at $5,010,848 in the last ninety days. 1.05% of the stock is currently owned by corporate insiders.

Analysts Set New Price Targets

A number of research analysts recently issued reports on MTG shares. Keefe, Bruyette & Woods boosted their price target on MGIC Investment from $26.00 to $27.00 and gave the company a "market perform" rating in a report on Monday, July 7th. Compass Point restated a "neutral" rating and set a $28.00 price target (up previously from $27.00) on shares of MGIC Investment in a report on Friday, May 23rd. Finally, Barclays boosted their price target on MGIC Investment from $26.00 to $27.00 and gave the company an "equal weight" rating in a report on Tuesday, July 8th. Five research analysts have rated the stock with a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat, MGIC Investment has a consensus rating of "Reduce" and an average price target of $26.67.

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.