Livforsakringsbolaget Skandia Omsesidigt Makes New Investment in MGIC Investment Corporation $MTG

Key Points

• Livförsäkringsbolaget Skandia Omsesidigt purchased 141,800 shares of MGIC Investment, worth approximately $4.0 million, giving it a 0.07% stake. Institutional investors collectively own 95.58% of the company.
• MGIC Investment reported quarterly EPS of $0.87, beating estimates of $0.76, although revenue declined 2.9% year over year to $295.39 million.
• The company raised its quarterly dividend from $0.15 to $0.17 per share, equivalent to a $0.68 annualized dividend and a 2.2% yield. Analysts maintain a “Moderate Buy” consensus with an average price target of $30.60.

Livforsakringsbolaget Skandia Omsesidigt purchased a new position in shares of MGIC Investment Corporation (NYSE:MTG - Free Report) during the second quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The firm purchased 141,800 shares of the insurance provider's stock, valued at approximately $3,997,000. Livforsakringsbolaget Skandia Omsesidigt owned 0.07% of MGIC Investment at the end of the most recent reporting period.

Several other institutional investors have also modified their holdings of the business. SBI Securities Co. Ltd. lifted its stake in MGIC Investment by 40.3% in the fourth quarter. SBI Securities Co. Ltd. now owns 1,461 shares of the insurance provider's stock valued at $43,000 after buying an additional 420 shares in the last quarter. Compound Planning Inc. raised its holdings in shares of MGIC Investment by 4.3% during the first quarter. Compound Planning Inc. now owns 10,392 shares of the insurance provider's stock worth $273,000 after acquiring an additional 433 shares during the period. Oregon Public Employees Retirement Fund lifted its position in MGIC Investment by 1.1% in the 1st quarter. Oregon Public Employees Retirement Fund now owns 44,972 shares of the insurance provider's stock valued at $1,181,000 after acquiring an additional 481 shares in the last quarter. Lido Advisors LLC boosted its stake in MGIC Investment by 2.2% in the 4th quarter. Lido Advisors LLC now owns 23,799 shares of the insurance provider's stock worth $689,000 after purchasing an additional 522 shares during the period. Finally, Victory Financial Group LLC boosted its stake in MGIC Investment by 1.9% in the 3rd quarter. Victory Financial Group LLC now owns 27,994 shares of the insurance provider's stock worth $794,000 after purchasing an additional 535 shares during the period. Institutional investors own 95.58% of the company's stock.

Wall Street Analyst Weigh In

Several research analysts have recently weighed in on MTG shares. Royal Bank Of Canada upped their price objective on MGIC Investment from $28.00 to $32.00 and gave the stock a "sector perform" rating in a research report on Friday, July 31st. Weiss Ratings raised MGIC Investment from a "buy (b+)" rating to a "buy (a-)" rating in a research report on Wednesday, August 19th. Barclays cut their target price on MGIC Investment from $29.00 to $28.00 and set an "equal weight" rating on the stock in a research note on Friday, May 1st. Keefe, Bruyette & Woods raised their price target on shares of MGIC Investment from $29.00 to $30.00 and gave the stock a "market perform" rating in a research note on Friday, July 31st. Finally, Roth Capital reiterated a "buy" rating and issued a $35.00 price objective on shares of MGIC Investment in a report on Thursday, July 30th. Two equities research analysts have rated the stock with a Strong Buy rating, one has assigned a Buy rating and four have issued a Hold rating to the company's stock. Based on data from MarketBeat.com, MGIC Investment currently has an average rating of "Moderate Buy" and an average target price of $30.60.

MGIC Investment Stock Performance

MTG opened at $31.08 on Friday. The business's 50-day simple moving average is $29.51 and its 200 day simple moving average is $27.55. MGIC Investment Corporation has a 52-week low of $24.69 and a 52-week high of $31.89. The company has a debt-to-equity ratio of 0.13, a quick ratio of 1.19 and a current ratio of 1.19. The firm has a market capitalization of $6.38 billion, a PE ratio of 9.71, a PEG ratio of 0.79 and a beta of 0.66.

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 analysts' consensus estimates of $0.76 by $0.11. The firm had revenue of $295.39 million during 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 business's revenue was down 2.9% compared to the same quarter last year. During the same period last year, the company earned $0.82 earnings per share. As a group, sell-side analysts expect that MGIC Investment Corporation will post 3.24 earnings per share for the current fiscal 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 paid a $0.17 dividend. This is a boost from MGIC Investment's previous quarterly dividend of $0.15. This represents a $0.68 annualized dividend and a dividend yield of 2.2%. The ex-dividend date of this dividend was Wednesday, August 5th. MGIC Investment's dividend payout ratio (DPR) is 21.25%.

Insiders Place Their Bets

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

MGIC Investment Company Profile

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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