MGIC Investment Corporation $MTG Shares Acquired by Hsbc Holdings PLC

Key Points

• Hsbc Holdings PLC increased its stake in MGIC Investment by 24.5% in the fourth quarter, buying 40,751 additional shares and bringing its total to 207,412 shares worth about $6.1 million.
• Several insiders recently sold stock: EVP Paula C. Maggio sold 20,937 shares and COO Salvatore A. Miosi sold 30,000 shares, both under pre-arranged Rule 10b5-1 trading plans.
• MGIC Investment reported quarterly EPS of $0.76, beating estimates, and its board authorized a $750 million share buyback while also paying a quarterly dividend of $0.15 per share.

Hsbc Holdings PLC raised its holdings in shares of MGIC Investment Corporation (NYSE:MTG - Free Report) by 24.5% in the fourth quarter, according to its most recent Form 13F filing with the SEC. The institutional investor owned 207,412 shares of the insurance provider's stock after buying an additional 40,751 shares during the period. Hsbc Holdings PLC owned about 0.10% of MGIC Investment worth $6,089,000 as of its most recent SEC filing.

Several other hedge funds have also recently added to or reduced their stakes in MTG. Newbridge Financial Services Group Inc. bought a new position in shares of MGIC Investment in the third quarter valued at $28,000. V Square Quantitative Management LLC bought a new stake in shares of MGIC Investment during the 4th quarter worth $36,000. SBI Securities Co. Ltd. grew its holdings in shares of MGIC Investment by 40.3% in the 4th quarter. SBI Securities Co. Ltd. now owns 1,461 shares of the insurance provider's stock worth $43,000 after acquiring an additional 420 shares during the last quarter. Geneos Wealth Management Inc. raised its position in shares of MGIC Investment by 88.0% during the first quarter. Geneos Wealth Management Inc. now owns 1,745 shares of the insurance provider's stock worth $43,000 after purchasing an additional 817 shares during the period. Finally, Kestra Advisory Services LLC acquired a new stake in shares of MGIC Investment during the fourth quarter worth $79,000. Institutional investors and hedge funds own 95.58% of the company's stock.

Insider Activity

In other news, EVP Paula C. Maggio sold 20,937 shares of the company's stock in a transaction dated Friday, May 29th. The stock was sold at an average price of $25.55, for a total value of $534,940.35. Following the transaction, the executive vice president owned 169,620 shares in the company, valued at $4,333,791. This represents a 10.99% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, 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 firm's stock in a transaction that occurred on Monday, June 8th. The stock was sold at an average price of $25.38, for a total transaction of $761,400.00. Following the sale, the chief operating officer owned 560,951 shares of the company's stock, valued at approximately $14,236,936.38. This represents a 5.08% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 1.34% of the company's stock.

MGIC Investment Stock Performance

Shares of MGIC Investment stock opened at $28.16 on Thursday. The stock has a market cap of $5.96 billion, a PE ratio of 8.94, a price-to-earnings-growth ratio of 1.94 and a beta of 0.67. The business has a fifty day simple moving average of $26.49 and a 200-day simple moving average of $26.96. The company has a quick ratio of 1.14, a current ratio of 1.14 and a debt-to-equity ratio of 0.13. MGIC Investment Corporation has a 12 month low of $24.69 and a 12 month high of $29.97.

MGIC Investment (NYSE:MTG - Get Free Report) last posted its quarterly earnings results on Wednesday, April 29th. The insurance provider reported $0.76 earnings per share for the quarter, beating the consensus estimate of $0.73 by $0.03. The firm had revenue of $297.08 million for the quarter, compared to analyst estimates of $303.12 million. MGIC Investment had a return on equity of 14.01% and a net margin of 59.63%.MGIC Investment's quarterly revenue was down 3.0% on a year-over-year basis. During the same period in the previous year, the firm earned $0.75 earnings per share. On average, sell-side analysts anticipate that MGIC Investment Corporation will post 3.05 EPS for the current fiscal year.

MGIC Investment declared that its board has authorized a share buyback program on Thursday, April 23rd that authorizes the company to repurchase $750.00 million in outstanding shares. This repurchase authorization authorizes the insurance provider to purchase up to 12.4% of its shares through open market purchases. Shares repurchase programs are typically a sign that the company's management believes its stock is undervalued.

MGIC Investment Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Thursday, May 21st. Shareholders of record on Wednesday, May 6th were paid a dividend of $0.15 per share. This represents a $0.60 annualized dividend and a yield of 2.1%. The ex-dividend date of this dividend was Wednesday, May 6th. MGIC Investment's payout ratio is 19.05%.

Wall Street Analyst Weigh In

Several brokerages have recently commented on MTG. UBS Group reduced their target price on MGIC Investment from $29.50 to $28.00 and set a "neutral" rating for the company in a report on Thursday, March 12th. Keefe, Bruyette & Woods boosted their price objective on MGIC Investment from $28.00 to $29.00 and gave the stock a "market perform" rating in a report on Friday, April 10th. Barclays reduced their price objective on shares of MGIC Investment from $29.00 to $28.00 and set an "equal weight" rating for the company in a research note on Friday, May 1st. Weiss Ratings upgraded shares of MGIC Investment from a "buy (b)" rating to a "buy (b+)" rating in a report on Tuesday. Finally, Royal Bank Of Canada assumed coverage on shares of MGIC Investment in a research report on Friday, May 22nd. They issued a "sector perform" rating and a $28.00 target price on the stock. One investment analyst has rated the stock with a Buy rating and four have issued a Hold rating to the company's stock. According to MarketBeat, MGIC Investment has a consensus rating of "Hold" and a consensus target price of $28.25.

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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