MGIC Investment Corporation $MTG Shares Sold by Hsbc Holdings PLC

Key Points

• HSBC Holdings cut its MGIC Investment stake by 73.7% in the second quarter, selling 303,584 shares and retaining 108,177 shares worth approximately $3.1 million. Institutional investors collectively own 95.58% of the company.
• MGIC Investment exceeded quarterly earnings expectations, reporting $0.87 in EPS versus the $0.76 consensus, although revenue declined 2.9% year over year to $295.39 million.
• The company raised its quarterly dividend to $0.17 per share, equivalent to an annualized $0.68 dividend and a 2.2% yield. Analysts maintain a “Moderate Buy” consensus with an average price target of $30.60.

Hsbc Holdings PLC reduced its holdings in shares of MGIC Investment Corporation (NYSE:MTG - Free Report) by 73.7% in the 2nd quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 108,177 shares of the insurance provider's stock after selling 303,584 shares during the quarter. Hsbc Holdings PLC owned approximately 0.05% of MGIC Investment worth $3,058,000 as of its most recent filing with the Securities and Exchange Commission.

A number of other hedge funds and other institutional investors also recently added to or reduced their stakes in MTG. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. acquired a new stake in shares of MGIC Investment in the first quarter valued at approximately $2,397,000. Goldman Sachs Group Inc. raised its position in shares of MGIC Investment by 6.7% during the 1st quarter. Goldman Sachs Group Inc. now owns 3,103,366 shares of the insurance provider's stock worth $76,901,000 after purchasing an additional 195,895 shares during the last quarter. Geneos Wealth Management Inc. lifted its stake in MGIC Investment by 88.0% in the 1st quarter. Geneos Wealth Management Inc. now owns 1,745 shares of the insurance provider's stock valued at $43,000 after buying an additional 817 shares in the last quarter. Sivia Capital Partners LLC acquired a new stake in MGIC Investment during the 2nd quarter valued at $425,000. Finally, Northwestern Mutual Wealth Management Co. grew its holdings in MGIC Investment by 18.9% during the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 5,211 shares of the insurance provider's stock valued at $145,000 after buying an additional 830 shares during the last quarter. Institutional investors and hedge funds own 95.58% of the company's stock.

MGIC Investment Stock Down 0.0%

MTG opened at $30.86 on Friday. The company has a debt-to-equity ratio of 0.13, a current ratio of 1.19 and a quick ratio of 1.19. The stock has a market capitalization of $6.33 billion, a price-to-earnings ratio of 9.65, a price-to-earnings-growth ratio of 0.78 and a beta of 0.65. The business has a 50-day moving average of $30.12 and a two-hundred day moving average of $27.82. MGIC Investment Corporation has a 12 month low of $24.69 and a 12 month high of $31.89.

MGIC Investment (NYSE:MTG - Get Free Report) last posted its quarterly earnings data on Wednesday, July 29th. The insurance provider reported $0.87 EPS for the quarter, beating analysts' consensus estimates of $0.76 by $0.11. MGIC Investment had a net margin of 59.20% and a return on equity of 13.90%. The company had revenue of $295.39 million during the quarter, compared to the consensus estimate of $297.54 million. During the same quarter in the prior year, the company posted $0.82 EPS. The company's quarterly revenue was down 2.9% compared to the same quarter last year. On average, research analysts expect that MGIC Investment Corporation will post 3.24 earnings per share for the current year.

MGIC Investment Increases Dividend

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

Insiders Place Their Bets

In related news, EVP Paula C. Maggio sold 20,000 shares of the stock in a transaction on Friday, August 7th. The stock was sold at an average price of $30.30, for a total value of $606,000.00. Following the transaction, the executive vice president directly owned 149,620 shares of the company's stock, valued at approximately $4,533,486. This trade represents a 11.79% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, COO Salvatore A. Miosi sold 30,000 shares of MGIC Investment stock in a transaction on Tuesday, September 1st. The shares were sold at an average price of $30.73, for a total value of $921,900.00. Following the completion of the transaction, the chief operating officer owned 470,951 shares in the company, valued at $14,472,324.23. The trade was a 5.99% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 1.34% of the stock is owned by company insiders.

Wall Street Analyst Weigh In

A number of equities analysts have recently weighed in on the company. Weiss Ratings raised MGIC Investment from a "buy (b+)" rating to a "buy (a-)" rating in a report on Wednesday, August 19th. Roth Capital reiterated a "buy" rating and set a $35.00 price objective on shares of MGIC Investment in a research report on Thursday, July 30th. Keefe, Bruyette & Woods boosted their target price on shares of MGIC Investment from $29.00 to $30.00 and gave the company a "market perform" rating in a research note on Friday, July 31st. Zacks Research upgraded shares of MGIC Investment from a "hold" rating to a "strong-buy" rating in a report on Tuesday, August 25th. Finally, Royal Bank Of Canada raised their price target on shares of MGIC Investment from $28.00 to $32.00 and gave the stock a "sector perform" rating in a research note on Friday, July 31st. Two investment analysts have rated the stock with a Strong Buy rating, one has assigned a Buy rating and four have given a Hold rating to the stock. According to MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average target price of $30.60.

MGIC Investment Company Profile

MGIC Investment Corporation NYSE: MTG is a holding company whose principal subsidiary is Mortgage Guaranty Insurance Corporation (MGIC), a provider of private mortgage insurance in the United States. MGIC's insurance helps lenders manage the risk associated with residential mortgages made to borrowers who have limited down payments, allowing qualified homebuyers to obtain financing with less than 20% down.

MGIC primarily offers primary mortgage insurance to mortgage lenders, banks, credit unions and other residential lending institutions.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.