JPMorgan Chase & Co. Acquires 743,212 Shares of MGIC Investment Corporation (NYSE:MTG)

Key Points

• JPMorgan Chase & Co. increased its stake in MGIC Investment Corporation by 4.8%, acquiring an additional 743,212 shares, bringing its total holdings to approximately 16.16 million shares valued at $400.5 million.
• Insider selling at MGIC includes COO Salvatore A. Miosi, who sold 30,000 shares for about $786,600, reflecting a 10.74% decrease in his ownership.
• MGIC Investment announced a quarterly dividend increase from $0.13 to $0.15 per share, reflecting a growing commitment to return value to shareholders, with a dividend yield of 2.2%.

JPMorgan Chase & Co. boosted its holdings in shares of MGIC Investment Corporation (NYSE:MTG - Free Report) by 4.8% in the 1st quarter, according to its most recent Form 13F filing with the SEC. The firm owned 16,162,180 shares of the insurance provider's stock after buying an additional 743,212 shares during the period. JPMorgan Chase & Co. owned approximately 6.81% of MGIC Investment worth $400,499,000 as of its most recent SEC filing.

Several other large investors also recently added to or reduced their stakes in MTG. Cullen Frost Bankers Inc. bought a new stake in MGIC Investment during the first quarter valued at $33,000. Golden State Wealth Management LLC boosted its stake in MGIC Investment by 7,837.0% during the first quarter. Golden State Wealth Management LLC now owns 2,143 shares of the insurance provider's stock valued at $53,000 after buying an additional 2,116 shares during the period. Headlands Technologies LLC boosted its stake in MGIC Investment by 619.2% during the first quarter. Headlands Technologies LLC now owns 2,280 shares of the insurance provider's stock valued at $56,000 after buying an additional 1,963 shares during the period. UMB Bank n.a. boosted its stake in MGIC Investment by 61.3% during the first quarter. UMB Bank n.a. now owns 2,660 shares of the insurance provider's stock valued at $66,000 after buying an additional 1,011 shares during the period. Finally, Fifth Third Bancorp boosted its stake 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 buying an additional 461 shares during the period. Institutional investors own 95.58% of the company's stock.

Insider Transactions at MGIC Investment

In other news, 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 value of $786,600.00. Following the transaction, the chief operating officer owned 249,401 shares in the company, valued at approximately $6,539,294.22. The trade was a 10.74% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, EVP Paula C. Maggio sold 20,000 shares of MGIC Investment 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 transaction, the executive vice president owned 157,395 shares in the company, valued at approximately $4,169,393.55. This represents a 11.27% decrease in their position. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 189,203 shares of company stock worth $5,010,848. Company insiders own 1.41% of the company's stock.

Analysts Set New Price Targets

Several equities research analysts recently issued reports on MTG shares. Compass Point reissued a "neutral" rating and set a $28.00 price objective (up previously from $27.00) on shares of MGIC Investment in a research note on Friday, May 23rd. Keefe, Bruyette & Woods raised their price target on MGIC Investment from $26.00 to $27.00 and gave the company a "market perform" rating in a research report on Monday, July 7th. Finally, Barclays raised their price target on MGIC Investment from $26.00 to $27.00 and gave the company an "equal weight" rating in a research report on Tuesday, July 8th. One equities research 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, MGIC Investment has an average rating of "Hold" and an average target price of $26.67.

MGIC Investment Trading Up 0.7%

NYSE MTG opened at $27.35 on Tuesday. The company has a market capitalization of $6.30 billion, a price-to-earnings ratio of 8.97, a PEG ratio of 1.99 and a beta of 0.90. The stock's 50-day simple moving average is $26.57 and its two-hundred day simple moving average is $25.37. The company has a quick ratio of 1.46, a current ratio of 1.46 and a debt-to-equity ratio of 0.13. MGIC Investment Corporation has a twelve month low of $21.94 and a twelve month high of $28.67.

MGIC Investment (NYSE:MTG - Get Free Report) last released its quarterly earnings data on Wednesday, July 30th. The insurance provider reported $0.82 EPS for the quarter, topping the consensus estimate of $0.70 by $0.12. The firm had revenue of $304.25 million for 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 quarterly revenue was down .3% on a year-over-year basis. During the same quarter in the previous year, the business earned $0.77 earnings per share. Research analysts forecast that MGIC Investment Corporation will post 2.71 EPS for the current fiscal year.

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

MGIC Investment Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, August 21st. Stockholders of record on Thursday, August 7th will be issued a $0.15 dividend. This is an increase 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 is Thursday, August 7th. MGIC Investment's dividend payout ratio (DPR) is presently 19.67%.

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.

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