MGIC Investment Corporation $MTG Shares Sold by Assenagon Asset Management S.A.

Key Points

• Assenagon Asset Management cut its MGIC Investment stake by 47.6% in the second quarter, selling 219,296 shares and retaining 241,548 shares worth approximately $6.8 million. Institutional investors collectively own 95.58% of the company.
• MGIC Investment reported quarterly EPS of $0.87, exceeding analyst expectations of $0.76, although revenue declined 2.9% year over year to $295.39 million. The company also authorized a $750 million share-repurchase program and raised its quarterly dividend to $0.17.
• Analyst sentiment remains mixed, with two Buy ratings and four Holds, producing a consensus “Hold” rating and an average price target of $30.60. Shares recently traded at $30.39.

Assenagon Asset Management S.A. trimmed its holdings in shares of MGIC Investment Corporation (NYSE:MTG - Free Report) by 47.6% in the second quarter, according to its most recent Form 13F filing with the SEC. The institutional investor owned 241,548 shares of the insurance provider's stock after selling 219,296 shares during the period. Assenagon Asset Management S.A. owned about 0.11% of MGIC Investment worth $6,812,000 as of its most recent SEC filing.

Other hedge funds have also recently added to or reduced their stakes in the company. GAMMA Investing LLC lifted its position in shares of MGIC Investment by 9.6% during the 2nd quarter. GAMMA Investing LLC now owns 7,993 shares of the insurance provider's stock valued at $225,000 after acquiring an additional 701 shares during the last quarter. Harbor Investment Advisory LLC raised its position in shares of MGIC Investment by 613.0% during the second quarter. Harbor Investment Advisory LLC now owns 2,574 shares of the insurance provider's stock worth $73,000 after purchasing an additional 2,213 shares during the period. Militia Capital Management LLC acquired a new stake in shares of MGIC Investment during the first quarter worth $788,000. NewEdge Advisors LLC lifted its holdings in shares of MGIC Investment by 1.8% during the first quarter. NewEdge Advisors LLC now owns 141,211 shares of the insurance provider's stock valued at $3,707,000 after purchasing an additional 2,559 shares during the last quarter. Finally, Bank of America Corp DE lifted its holdings in shares of MGIC Investment by 15.4% during the first quarter. Bank of America Corp DE now owns 1,415,378 shares of the insurance provider's stock valued at $37,154,000 after purchasing an additional 188,519 shares during the last quarter. Institutional investors and hedge funds own 95.58% of the company's stock.

MGIC Investment Trading Up 0.4%

Shares of NYSE MTG opened at $30.39 on Wednesday. The company has a current ratio of 1.19, a quick ratio of 1.19 and a debt-to-equity ratio of 0.13. MGIC Investment Corporation has a one year low of $24.69 and a one year high of $31.89. The business has a 50-day moving average price of $28.12 and a two-hundred day moving average price of $27.16. The firm has a market capitalization of $6.23 billion, a PE ratio of 9.50, a PEG ratio of 0.78 and a beta of 0.66.

MGIC Investment (NYSE:MTG - Get Free Report) last issued its 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 company 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 firm's quarterly revenue was down 2.9% on a year-over-year basis. During the same quarter in the prior year, the company earned $0.82 EPS. As a group, analysts predict that MGIC Investment Corporation will post 3.21 earnings per share for the current fiscal year.

MGIC Investment declared that its Board of Directors has authorized a stock repurchase program on Thursday, April 23rd that permits the company to repurchase $750.00 million in outstanding shares. This repurchase authorization permits the insurance provider to repurchase up to 12.4% of its shares through open market purchases. Shares repurchase programs are often an indication that the company's board of directors believes its stock is undervalued.

MGIC Investment Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, August 20th. Shareholders of record on Wednesday, August 5th will be paid a $0.17 dividend. The ex-dividend date is Wednesday, August 5th. This represents a $0.68 annualized dividend and a yield of 2.2%. This is a boost from MGIC Investment's previous quarterly dividend of $0.15. MGIC Investment's dividend payout ratio (DPR) is currently 21.25%.

Insider Buying and Selling

In other news, COO Salvatore A. Miosi sold 30,000 shares of the company's stock in a transaction on Monday, June 8th. The shares were sold at an average price of $25.38, for a total value of $761,400.00. Following the transaction, the chief operating officer directly 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 transaction was disclosed in a legal 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 the company's stock in a transaction on Friday, August 7th. The stock was sold at an average price of $30.30, for a total transaction of $606,000.00. Following the completion of the transaction, the executive vice president directly owned 149,620 shares in the company, valued at $4,533,486. This trade represents a 11.79% 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. In the last quarter, insiders sold 70,937 shares of company stock valued at $1,902,340. Insiders own 1.34% of the company's stock.

Wall Street Analysts Forecast Growth

A number of equities analysts recently weighed in on MTG shares. Keefe, Bruyette & Woods lifted their price target on MGIC Investment from $29.00 to $30.00 and gave the stock a "market perform" rating in a research note on Friday, July 31st. Roth Capital reiterated a "buy" rating and issued a $35.00 target price on shares of MGIC Investment in a report on Thursday, July 30th. Royal Bank Of Canada lifted their target price on shares of 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 upgraded shares of MGIC Investment from a "buy (b)" rating to a "buy (b+)" rating in a report on Tuesday, July 7th. Finally, Barclays reduced their price target on shares of MGIC Investment from $29.00 to $28.00 and set an "equal weight" rating for the company in a research report on Friday, May 1st. Two research analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the stock. Based on data from MarketBeat.com, the company currently has a consensus rating of "Hold" and an average price target 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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