Jefferies Financial Group Inc. Makes New $4.07 Million Investment in MGIC Investment Corporation (NYSE:MTG)

Key Points

• Jefferies Financial Group Inc. acquired 164,049 shares of MGIC Investment Corporation valued at approximately $4.07 million, representing a 0.07% ownership stake.
• MGIC Investment has recently seen price target increases from analysts, with Barclays and Keefe, Bruyette & Woods adjusting their targets from $26 to $27.
• The company announced a quarterly dividend increase to $0.15 per share, with the ex-dividend date on August 7th, representing an annualized yield of 2.3%.

Jefferies Financial Group Inc. purchased a new stake in shares of MGIC Investment Corporation (NYSE:MTG - Free Report) during the 1st quarter, according to the company in its most recent Form 13F filing with the SEC. The fund purchased 164,049 shares of the insurance provider's stock, valued at approximately $4,065,000. Jefferies Financial Group Inc. owned about 0.07% of MGIC Investment at the end of the most recent quarter.

A number of other large investors also recently bought and sold shares of MTG. First Trust Advisors LP increased its stake in shares of MGIC Investment by 22.4% during the fourth quarter. First Trust Advisors LP now owns 16,008,489 shares of the insurance provider's stock worth $379,561,000 after buying an additional 2,928,595 shares during the period. Caisse DE Depot ET Placement DU Quebec increased its stake in shares of MGIC Investment by 292.0% during the fourth 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 period. BNP Paribas Financial Markets increased its stake in shares of MGIC Investment by 259.4% during the fourth quarter. BNP Paribas Financial Markets now owns 1,105,399 shares of the insurance provider's stock worth $26,209,000 after buying an additional 797,852 shares during the period. Invesco Ltd. increased its stake in shares of MGIC Investment by 16.6% during the fourth quarter. Invesco Ltd. now owns 4,766,195 shares of the insurance provider's stock worth $113,006,000 after buying an additional 677,227 shares during the period. Finally, Barclays PLC increased its stake in shares of MGIC Investment by 123.5% during the fourth quarter. Barclays PLC now owns 1,023,175 shares of the insurance provider's stock worth $24,260,000 after buying an additional 565,469 shares during the period. Institutional investors and hedge funds own 95.58% of the company's stock.

Wall Street Analyst Weigh In

A number of analysts recently weighed in on MTG shares. Compass Point restated a "neutral" rating and set a $28.00 target price (up from $27.00) on shares of MGIC Investment in a research note on Friday, May 23rd. Keefe, Bruyette & Woods upped their target price on shares of MGIC Investment from $26.00 to $27.00 and gave the stock a "market perform" rating in a research note on Monday, July 7th. Finally, Barclays upped 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. One investment analyst has rated the stock with a sell rating and five have given a hold rating to the company's stock. According to data from MarketBeat.com, the company presently has an average rating of "Hold" and a consensus price target of $26.67.

MGIC Investment Stock Performance

Shares of MTG stock traded up $0.13 during trading hours on Wednesday, hitting $27.07. The stock had a trading volume of 120,488 shares, compared to its average volume of 2,180,268. The firm has a market capitalization of $6.24 billion, a PE ratio of 8.87, a PEG ratio of 1.96 and a beta of 0.90. MGIC Investment Corporation has a twelve month low of $21.94 and a twelve month high of $28.67. The stock's 50 day moving average is $26.52 and its 200 day moving average is $25.30. The company has a debt-to-equity ratio of 0.13, a current ratio of 1.46 and a quick ratio of 1.46.

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, beating the consensus estimate of $0.70 by $0.12. The business had revenue of $304.25 million during 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 company's revenue was down .3% compared to the same quarter last year. During the same period in the prior year, the company earned $0.77 earnings per share. As a group, research analysts forecast that MGIC Investment Corporation will post 2.71 earnings per share for the current fiscal year.

MGIC Investment Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, August 21st. Investors of record on Thursday, August 7th will be issued a dividend of $0.15 per share. This is a boost from MGIC Investment's previous quarterly dividend of $0.13. This represents a $0.60 annualized dividend and a dividend yield of 2.2%. The ex-dividend date of this dividend is Thursday, August 7th. MGIC Investment's dividend payout ratio is 17.05%.

MGIC Investment declared that its board has initiated a stock buyback program on Thursday, April 24th that allows the company to repurchase $750.00 million in shares. This repurchase authorization allows the insurance provider to buy up to 12.5% of its stock through open market purchases. Stock repurchase programs are usually a sign that the company's board believes its stock is undervalued.

Insider Buying and Selling at MGIC Investment

In related news, COO Salvatore A. Miosi sold 30,000 shares of the stock in a transaction on Friday, August 1st. The stock was sold at an average price of $26.22, for a total transaction of $786,600.00. Following the completion of the sale, the chief operating officer directly owned 249,401 shares of the company's stock, valued at $6,539,294.22. This trade represents a 10.74% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, EVP Paula C. Maggio sold 20,000 shares of the stock in a transaction 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 sale, the executive vice president directly owned 157,395 shares of the company's stock, 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. 1.41% of the stock is owned by company insiders.

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.