MGIC Investment Corporation $MTG Stock Position Lifted by Geode Capital Management LLC

Key Points

• Geode Capital Management increased its MGIC Investment stake by 2.8% in the fourth quarter, ending with 5.37 million shares valued at about $163.4 million.
• MGIC Investment reported strong quarterly earnings of $0.76 per share, beating estimates, though revenue came in slightly below expectations and was down 3% from a year earlier.
• The company recently paid a quarterly dividend of $0.15 per share and authorized a $750 million share buyback, signaling continued capital returns to shareholders.

Geode Capital Management LLC boosted its stake in shares of MGIC Investment Corporation (NYSE:MTG - Free Report) by 2.8% during the fourth quarter, according to its most recent disclosure with the SEC. The institutional investor owned 5,371,470 shares of the insurance provider's stock after purchasing an additional 146,589 shares during the period. Geode Capital Management LLC owned about 2.40% of MGIC Investment worth $163,368,000 at the end of the most recent reporting period.

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

MGIC Investment Stock Performance

MTG stock opened at $24.82 on Thursday. The company has a quick ratio of 1.14, a current ratio of 1.14 and a debt-to-equity ratio of 0.13. The company has a market capitalization of $5.25 billion, a price-to-earnings ratio of 7.88, a P/E/G ratio of 1.71 and a beta of 0.68. MGIC Investment Corporation has a 12 month low of $24.69 and a 12 month high of $29.97. The firm has a 50 day moving average of $26.69 and a two-hundred day moving average of $27.24.

MGIC Investment (NYSE:MTG - Get Free Report) last posted its earnings results on Wednesday, April 29th. The insurance provider reported $0.76 EPS for the quarter, topping the consensus estimate of $0.73 by $0.03. The company had revenue of $297.08 million during the quarter, compared to the consensus estimate of $303.12 million. MGIC Investment had a net margin of 59.63% and a return on equity of 14.01%. The company's revenue for the quarter was down 3.0% compared to the same quarter last year. During the same period in the previous year, the firm posted $0.75 earnings per share. As a group, equities analysts anticipate that MGIC Investment Corporation will post 3.06 EPS for the current fiscal year.

MGIC Investment Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Thursday, May 21st. Investors of record on Wednesday, May 6th were issued a dividend of $0.15 per share. This represents a $0.60 annualized dividend and a dividend yield of 2.4%. The ex-dividend date of this dividend was Wednesday, May 6th. MGIC Investment's dividend payout ratio is currently 19.05%.

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

Analyst Ratings Changes

Several analysts have commented on the stock. Keefe, Bruyette & Woods boosted their target price on shares of MGIC Investment from $28.00 to $29.00 and gave the stock a "market perform" rating in a research report on Friday, April 10th. Barclays decreased their target price 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. Weiss Ratings downgraded shares of MGIC Investment from a "buy (a-)" rating to a "buy (b+)" rating in a research report on Thursday, February 5th. UBS Group decreased their target price on shares of MGIC Investment from $29.50 to $28.00 and set a "neutral" rating for the company in a research report on Thursday, March 12th. 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 for the company. One investment analyst has rated the stock with a Buy rating and four have assigned a Hold rating to the company's stock. Based on data from MarketBeat.com, the stock has an average rating of "Hold" and a consensus price target of $28.25.

Insider Buying and Selling

In related news, CEO Timothy J. Mattke sold 139,202 shares of the company's stock in a transaction on Thursday, April 2nd. The shares were sold at an average price of $26.49, for a total transaction of $3,687,460.98. Following the completion of the sale, the chief executive officer directly owned 1,118,005 shares of the company's stock, valued at approximately $29,615,952.45. This represents a 11.07% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, COO Salvatore A. Miosi sold 10,931 shares of the company's stock in a transaction on Wednesday, April 1st. The stock was sold at an average price of $26.25, for a total transaction of $286,938.75. Following the sale, the chief operating officer directly owned 590,951 shares of the company's stock, valued at approximately $15,512,463.75. This represents a 1.82% decrease in their ownership of the stock. 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. In the last three months, insiders sold 171,070 shares of company stock valued at $4,509,340. Company insiders own 1.34% of the company's stock.

MGIC Investment 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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