MGIC Investment Corporation (NYSE:MTG) Shares Purchased by LSV Asset Management

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% during the 1st quarter, according to its most recent disclosure with the Securities & Exchange Commission. The firm owned 10,888,437 shares of the insurance provider's stock after buying an additional 310,095 shares during the quarter. LSV Asset Management owned about 4.59% of MGIC Investment worth $269,815,000 as of its most recent filing with the Securities & Exchange Commission.

Several other institutional investors have also recently made changes to their positions in MTG. First Trust Advisors LP boosted its stake in MGIC Investment by 22.4% in the 4th quarter. First Trust Advisors LP now owns 16,008,489 shares of the insurance provider's stock worth $379,561,000 after purchasing an additional 2,928,595 shares during the period. Invesco Ltd. boosted its stake in MGIC Investment by 16.6% in the 4th quarter. Invesco Ltd. now owns 4,766,195 shares of the insurance provider's stock worth $113,006,000 after purchasing an additional 677,227 shares during the period. Northern Trust Corp boosted its stake in MGIC Investment by 6.5% in the 4th quarter. Northern Trust Corp now owns 4,524,277 shares of the insurance provider's stock worth $107,271,000 after purchasing an additional 277,746 shares during the period. Caisse DE Depot ET Placement DU Quebec increased its stake in MGIC Investment by 292.0% in the 4th quarter. Caisse DE Depot ET Placement DU Quebec now owns 2,072,629 shares of the insurance provider's stock worth $49,142,000 after acquiring an additional 1,543,908 shares during the last quarter. Finally, Franklin Resources Inc. increased its stake in MGIC Investment by 1.6% in the 4th quarter. Franklin Resources Inc. now owns 1,647,936 shares of the insurance provider's stock worth $39,072,000 after acquiring an additional 26,098 shares during the last quarter. Institutional investors own 95.58% of the company's stock.

MGIC Investment Stock Up 0.7%

Shares of MTG traded up $0.20 during midday trading on Tuesday, reaching $26.92. 1,798,280 shares of the stock were exchanged, compared to its average volume of 2,191,797. MGIC Investment Corporation has a 52 week low of $21.94 and a 52 week high of $28.67. The company has a current ratio of 1.46, a quick ratio of 1.46 and a debt-to-equity ratio of 0.13. The company's 50 day moving average is $26.51 and its two-hundred day moving average is $25.28. The company has a market capitalization of $6.21 billion, a P/E ratio of 8.83, a PEG ratio of 1.95 and a beta of 0.90.

MGIC Investment (NYSE:MTG - Get Free Report) last posted its quarterly earnings results on Wednesday, July 30th. The insurance provider reported $0.82 earnings per share (EPS) for the quarter, topping 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 for the quarter, compared to the consensus estimate of $306.25 million. During the same quarter in the prior year, the company earned $0.77 EPS. The business's revenue was down .3% compared to the same quarter last year. On average, sell-side analysts anticipate that MGIC Investment Corporation will post 2.71 earnings per share for the current year.

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

MGIC Investment Increases Dividend

The business 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. This is an increase from MGIC Investment's previous quarterly dividend of $0.13. The ex-dividend date is Thursday, August 7th. This represents a $0.60 dividend on an annualized basis and a dividend yield of 2.2%. MGIC Investment's dividend payout ratio (DPR) is currently 19.67%.

Insiders Place Their Bets

In related 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 transaction 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 document filed with the SEC, which is available through this link. Also, EVP Paula C. Maggio sold 20,000 shares of the stock in a transaction dated Friday, May 30th. The shares were sold at an average price of $26.49, for a total value of $529,800.00. Following the completion of the sale, the executive vice president 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 ownership of the stock. The disclosure for this sale can be found here. Corporate insiders own 1.05% of the company's stock.

Wall Street Analysts Forecast Growth

A number of analysts have issued reports on the company. 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 research note on Friday, May 23rd. Keefe, Bruyette & Woods lifted their price objective on MGIC Investment from $26.00 to $27.00 and gave the stock a "market perform" rating in a research note on Monday, July 7th. Finally, Barclays lifted their price objective on MGIC Investment from $26.00 to $27.00 and gave the stock an "equal weight" rating in a research note on Tuesday, July 8th. One equities research analyst has rated the stock with a sell rating, five have given a hold rating and one has given a buy rating to the company's stock. Based on data from MarketBeat.com, MGIC Investment presently has a consensus rating of "Hold" and a consensus price target of $26.43.

About MGIC Investment

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.