LSV Asset Management Boosts Holdings in MGIC Investment Corporation (NYSE:MTG)

Key Points

• LSV Asset Management increased its stake in MGIC Investment Corporation by 2.9%, acquiring 310,095 additional shares, bringing its total ownership to approximately 10.9 million shares valued at around $270 million.
• Multiple institutional investors have recently modified their holdings in MGIC, with notable increases by First Trust Advisors LP (22.4%) and Caisse DE Depot ET Placement DU Quebec (292.0%), indicating strong institutional confidence in the company.
• MGIC Investment announced a quarterly dividend increase from $0.13 to $0.15 per share and initiated a stock repurchase plan worth $750 million, reflecting confidence in its financial stability.

LSV Asset Management lifted its stake in MGIC Investment Corporation (NYSE:MTG - Free Report) by 2.9% in the 1st quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The institutional investor owned 10,888,437 shares of the insurance provider's stock after acquiring an additional 310,095 shares during the period. LSV Asset Management owned 4.59% of MGIC Investment worth $269,815,000 at the end of the most recent quarter.

Several other large investors have also recently made changes to their positions in MTG. KBC Group NV grew its stake in MGIC Investment by 10.2% during the 1st quarter. KBC Group NV now owns 11,417 shares of the insurance provider's stock worth $283,000 after buying an additional 1,060 shares during the last quarter. Cerity Partners LLC grew its stake in MGIC Investment by 59.2% during the 1st quarter. Cerity Partners LLC now owns 78,307 shares of the insurance provider's stock valued at $1,940,000 after purchasing an additional 29,104 shares during the last quarter. GAMMA Investing LLC grew its stake in MGIC Investment by 39.1% during the 1st quarter. GAMMA Investing LLC now owns 6,068 shares of the insurance provider's stock valued at $150,000 after purchasing an additional 1,705 shares during the last quarter. Allspring Global Investments Holdings LLC grew its stake in MGIC Investment by 50.1% during the 1st quarter. Allspring Global Investments Holdings LLC now owns 16,147 shares of the insurance provider's stock valued at $406,000 after purchasing an additional 5,393 shares during the last quarter. Finally, GSA Capital Partners LLP purchased a new stake in MGIC Investment during the 1st quarter valued at about $1,353,000. 95.58% of the stock is owned by institutional investors.

Insider Activity at MGIC Investment

In other MGIC Investment news, COO Salvatore A. Miosi sold 30,000 shares of the company's stock in a transaction on Friday, August 1st. The stock was sold at an average price of $26.22, for a total value of $786,600.00. Following the completion of the sale, the chief operating officer directly owned 249,401 shares in the company, valued at $6,539,294.22. This represents a 10.74% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. 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 transaction, the executive vice president 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 currently owned by insiders.

Wall Street Analyst Weigh In

Several research firms have weighed in on MTG. Keefe, Bruyette & Woods boosted their price target on MGIC Investment from $26.00 to $27.00 and gave the company a "market perform" rating in a research note on Monday, July 7th. Barclays boosted their price objective on MGIC Investment from $26.00 to $27.00 and gave the company an "equal weight" rating in a report on Tuesday, July 8th. Finally, Compass Point reissued 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 equities research analyst has rated the stock with a sell rating and five have assigned a hold rating to the company's stock. According to MarketBeat, MGIC Investment presently has a consensus rating of "Hold" and a consensus price target of $26.67.

MGIC Investment Price Performance

Shares of MGIC Investment stock traded up $0.02 on Wednesday, reaching $26.96. The company's stock had a trading volume of 642,461 shares, compared to its average volume of 2,183,743. The company has a market capitalization of $6.21 billion, a P/E ratio of 8.84, a PEG ratio of 1.96 and a beta of 0.90. MGIC Investment Corporation has a 52-week low of $21.94 and a 52-week high of $28.67. The stock has a 50-day moving average price of $26.52 and a 200-day moving average price of $25.30. 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 (NYSE:MTG - Get Free Report) last posted its quarterly earnings data on Wednesday, July 30th. The insurance provider reported $0.82 EPS for the quarter, beating analysts' consensus estimates of $0.70 by $0.12. MGIC Investment had a return on equity of 14.73% and a net margin of 62.58%. The business had revenue of $304.25 million during the quarter, compared to analysts' expectations of $306.25 million. During the same period in the previous year, the business earned $0.77 earnings per share. The business's revenue was down .3% compared to the same quarter last year. Analysts expect that MGIC Investment Corporation will post 2.71 EPS for the current year.

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

MGIC Investment Increases Dividend

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

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.