Legal & General Group Plc Makes New Investment in MGIC Investment Corporation $MTG

Key Points

• Legal & General Group acquired 294,120 shares of MGIC Investment during the second quarter, worth approximately $8.3 million. Institutional investors collectively own 95.58% of the company.
• MGIC Investment reported quarterly EPS of $0.87, beating estimates by $0.11, while revenue of $295.4 million declined 2.9% year over year. Shares recently traded at $30.67, near their 52-week high of $31.89.
• The company raised its quarterly dividend from $0.15 to $0.17 per share, equivalent to an annualized dividend of $0.68 and a 2.2% yield. Analysts maintain a “Moderate Buy” consensus with an average price target of $30.60.

Legal & General Group Plc bought a new stake in shares of MGIC Investment Corporation (NYSE:MTG - Free Report) during the 2nd quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The firm bought 294,120 shares of the insurance provider's stock, valued at approximately $8,294,000. Legal & General Group Plc owned approximately 0.14% of MGIC Investment at the end of the most recent quarter.

A number of other institutional investors and hedge funds have also made changes to their positions in MTG. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. bought a new position in shares of MGIC Investment in the 1st quarter worth $2,397,000. Goldman Sachs Group Inc. boosted its position in MGIC Investment by 6.7% during the first quarter. Goldman Sachs Group Inc. now owns 3,103,366 shares of the insurance provider's stock valued at $76,901,000 after purchasing an additional 195,895 shares in the last quarter. Geneos Wealth Management Inc. boosted its position in MGIC Investment by 88.0% during the first quarter. Geneos Wealth Management Inc. now owns 1,745 shares of the insurance provider's stock valued at $43,000 after purchasing an additional 817 shares in the last quarter. Sivia Capital Partners LLC purchased a new position in MGIC Investment in the second quarter valued at about $425,000. Finally, Northwestern Mutual Wealth Management Co. grew its stake in MGIC Investment by 18.9% in the second quarter. Northwestern Mutual Wealth Management Co. now owns 5,211 shares of the insurance provider's stock valued at $145,000 after purchasing an additional 830 shares during the last quarter. 95.58% of the stock is currently owned by hedge funds and other institutional investors.

MGIC Investment Stock Performance

Shares of MTG stock opened at $30.67 on Wednesday. The business has a fifty day moving average of $29.68 and a 200 day moving average of $27.60. MGIC Investment Corporation has a 1 year low of $24.69 and a 1 year high of $31.89. The company has a debt-to-equity ratio of 0.13, a current ratio of 1.19 and a quick ratio of 1.19. The firm has a market capitalization of $6.29 billion, a price-to-earnings ratio of 9.58, a price-to-earnings-growth ratio of 0.78 and a beta of 0.65.

MGIC Investment (NYSE:MTG - Get Free Report) last posted its quarterly earnings results on Wednesday, July 29th. The insurance provider reported $0.87 earnings per share for the quarter, beating the consensus estimate of $0.76 by $0.11. The business had revenue of $295.39 million for the quarter, compared to the consensus estimate of $297.54 million. MGIC Investment had a return on equity of 13.90% and a net margin of 59.20%.The company's quarterly revenue was down 2.9% compared to the same quarter last year. During the same quarter in the previous year, the business earned $0.82 EPS. As a group, research analysts expect that MGIC Investment Corporation will post 3.24 earnings per share for the current year.

MGIC Investment Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Thursday, August 20th. Investors of record on Wednesday, August 5th were issued a dividend of $0.17 per share. This represents a $0.68 dividend on an annualized basis and a dividend yield of 2.2%. This is a positive change from MGIC Investment's previous quarterly dividend of $0.15. The ex-dividend date of this dividend was Wednesday, August 5th. MGIC Investment's dividend payout ratio is presently 21.25%.

Insider Buying and Selling

In other MGIC Investment news, COO Salvatore A. Miosi sold 30,000 shares of the firm's stock in a transaction that occurred on Monday, June 8th. The shares were sold at an average price of $25.38, for a total transaction of $761,400.00. Following the completion of the transaction, the chief operating officer directly owned 560,951 shares of the company's stock, valued at approximately $14,236,936.38. This trade represents a 5.08% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Paula C. Maggio sold 20,000 shares of MGIC Investment stock in a transaction that occurred on Friday, August 7th. The shares were sold at an average price of $30.30, for a total transaction of $606,000.00. Following the sale, the executive vice president owned 149,620 shares of the company's stock, valued at approximately $4,533,486. The trade was a 11.79% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 1.34% of the stock is owned by corporate insiders.

Wall Street Analysts Forecast Growth

Several research firms have commented on MTG. Keefe, Bruyette & Woods increased their price target on shares of MGIC Investment from $29.00 to $30.00 and gave the company a "market perform" rating in a research report on Friday, July 31st. Roth Capital reaffirmed a "buy" rating and issued a $35.00 price objective on shares of MGIC Investment in a research report on Thursday, July 30th. Weiss Ratings upgraded shares of MGIC Investment from a "buy (b+)" rating to a "buy (a-)" rating in a research note on Wednesday, August 19th. Zacks Research raised shares of MGIC Investment from a "hold" rating to a "strong-buy" rating in a research report on Tuesday, August 25th. Finally, Royal Bank Of Canada raised their target price on shares of MGIC Investment from $28.00 to $32.00 and gave the company a "sector perform" rating in a research note on Friday, July 31st. Two equities research analysts have rated the stock with a Strong Buy rating, one has assigned a Buy rating and four have given a Hold rating to the company's stock. According to data from MarketBeat, MGIC Investment currently has an average rating of "Moderate Buy" and a consensus target price of $30.60.

About MGIC Investment

MGIC Investment Corporation NYSE: MTG is a leading provider of private mortgage insurance in the United States. Established in 1957 as the nation's first private mortgage insurer, MGIC helps lenders manage credit risk and facilitates homeownership by protecting mortgage loans against default. Headquartered in Milwaukee, Wisconsin, the company operates through its principal subsidiary, Mortgage Guaranty Insurance Corporation, and maintains relationships with a broad network of originators and servicers nationwide.

The company's primary business activity involves issuing mortgage insurance policies that enable borrowers to purchase homes with down payments below traditional lending thresholds.

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