Jefferies Financial Group Inc. Invests $4.07 Million 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. acquired a new stake in shares of MGIC Investment Corporation (NYSE:MTG - Free Report) during the 1st quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm acquired 164,049 shares of the insurance provider's stock, valued at approximately $4,065,000. Jefferies Financial Group Inc. owned 0.07% of MGIC Investment as of its most recent SEC filing.

Several other institutional investors also recently bought and sold shares of the business. Signaturefd LLC lifted its position in MGIC Investment by 1.9% during the first quarter. Signaturefd LLC now owns 22,112 shares of the insurance provider's stock valued at $548,000 after purchasing an additional 421 shares during the period. Fifth Third Bancorp lifted its position in MGIC Investment by 20.1% during the first quarter. Fifth Third Bancorp now owns 2,749 shares of the insurance provider's stock valued at $68,000 after purchasing an additional 461 shares during the period. NorthCrest Asset Manangement LLC lifted its position in MGIC Investment by 1.3% during the first quarter. NorthCrest Asset Manangement LLC now owns 41,718 shares of the insurance provider's stock valued at $1,034,000 after purchasing an additional 524 shares during the period. US Bancorp DE lifted its position in MGIC Investment by 5.3% during the first quarter. US Bancorp DE now owns 10,797 shares of the insurance provider's stock valued at $268,000 after purchasing an additional 548 shares during the period. Finally, ProShare Advisors LLC lifted its position in MGIC Investment by 4.9% during the fourth quarter. ProShare Advisors LLC now owns 11,854 shares of the insurance provider's stock valued at $281,000 after purchasing an additional 553 shares during the period. 95.58% of the stock is owned by hedge funds and other institutional investors.

MGIC Investment Price Performance

Shares of MTG stock traded down $0.11 on Thursday, reaching $26.77. 93,531 shares of the company were exchanged, compared to its average volume of 2,178,281. The company has a market cap of $6.17 billion, a price-to-earnings ratio of 8.78, a P/E/G ratio of 1.97 and a beta of 0.90. The business has a 50-day moving average price of $26.52 and a 200 day moving average price of $25.30. 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 Corporation has a 1 year low of $21.94 and a 1 year high of $28.67.

MGIC Investment (NYSE:MTG - Get Free Report) last announced its quarterly earnings data on Wednesday, July 30th. The insurance provider reported $0.82 earnings per share (EPS) for the quarter, beating the consensus estimate 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 quarter in the prior year, the company earned $0.77 EPS. MGIC Investment's revenue was down .3% compared to the same quarter last year. Equities research analysts forecast that MGIC Investment Corporation will post 2.71 earnings per share for the current fiscal year.

MGIC Investment declared that its Board of Directors has approved a stock 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 repurchase up to 12.5% of its stock through open market purchases. Stock repurchase programs are often an indication that the company's board believes its stock is undervalued.

MGIC Investment Increases Dividend

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

Insider Activity

In related news, COO Salvatore A. Miosi sold 30,000 shares of the company's stock in a transaction dated Friday, August 1st. The shares were 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 owned 249,401 shares of the company's stock, valued at approximately $6,539,294.22. This represents a 10.74% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, EVP Paula C. Maggio sold 20,000 shares of the stock in a transaction that occurred 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 directly owned 157,395 shares of the company's stock, valued at approximately $4,169,393.55. This trade represents a 11.27% decrease in their position. The disclosure for this sale can be found here. 1.05% of the stock is currently owned by corporate insiders.

Analysts Set New Price Targets

MTG has been the subject of a number of research reports. Barclays boosted their target price on shares of MGIC Investment from $26.00 to $27.00 and gave the company an "equal weight" rating in a research report on Tuesday, July 8th. Keefe, Bruyette & Woods lifted their price objective 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. Finally, Compass Point reaffirmed a "neutral" rating and issued a $28.00 price objective (up previously from $27.00) on shares of MGIC Investment in a report on Friday, May 23rd. One analyst has rated the stock with a sell rating and five have issued a hold rating to the company. According to data from MarketBeat.com, the stock currently has a consensus rating of "Hold" and a consensus target price 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.