Ontario Teachers Pension Plan Board Acquires 10,697 Shares of MGIC Investment Corporation (NYSE:MTG)

Key Points

• Ontario Teachers Pension Plan Board increased its stake in MGIC Investment Corporation by 15.3%, owning 80,673 shares valued at approximately $1.999 million at the end of the last quarter.
• MGIC Investment announced a new $750 million share buyback program and raised its quarterly dividend to $0.15 per share, up from $0.13, indicating confidence in company valuation.
• MGIC's latest earnings report showed $0.82 earnings per share, surpassing expectations, while reporting a slight 0.3% decline in revenue year-over-year.

Ontario Teachers Pension Plan Board grew its holdings in shares of MGIC Investment Corporation (NYSE:MTG - Free Report) by 15.3% during the first quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The institutional investor owned 80,673 shares of the insurance provider's stock after purchasing an additional 10,697 shares during the period. Ontario Teachers Pension Plan Board's holdings in MGIC Investment were worth $1,999,000 at the end of the most recent quarter.

Other institutional investors and hedge funds have also recently made changes to their positions in the company. Cullen Frost Bankers Inc. acquired a new position in MGIC Investment in the 1st quarter valued at $33,000. Golden State Wealth Management LLC raised its holdings in MGIC Investment by 7,837.0% in the 1st quarter. Golden State Wealth Management LLC now owns 2,143 shares of the insurance provider's stock valued at $53,000 after acquiring an additional 2,116 shares in the last quarter. UMB Bank n.a. raised its holdings in MGIC Investment by 61.3% in the 1st quarter. UMB Bank n.a. now owns 2,660 shares of the insurance provider's stock valued at $66,000 after acquiring an additional 1,011 shares in the last quarter. Fifth Third Bancorp raised its holdings in MGIC Investment by 20.1% in the 1st quarter. Fifth Third Bancorp now owns 2,749 shares of the insurance provider's stock valued at $68,000 after acquiring an additional 461 shares in the last quarter. Finally, Versant Capital Management Inc raised its holdings in MGIC Investment by 262.0% in the 1st quarter. Versant Capital Management Inc now owns 4,811 shares of the insurance provider's stock valued at $119,000 after acquiring an additional 3,482 shares in the last quarter. Institutional investors and hedge funds own 95.58% of the company's stock.

Analyst Upgrades and Downgrades

MTG has been the subject of several analyst reports. Barclays lifted their price objective on MGIC Investment from $26.00 to $27.00 and gave the company an "equal weight" rating in a report on Tuesday, July 8th. Compass Point reiterated a "neutral" rating and set a $28.00 price target (up previously from $27.00) on shares of MGIC Investment in a research report on Friday, May 23rd. Finally, Keefe, Bruyette & Woods increased their price target on shares of MGIC Investment from $26.00 to $27.00 and gave the stock a "market perform" rating in a research report on Monday, July 7th. One investment analyst has rated the stock with a sell rating and five have assigned a hold rating to the company. According to MarketBeat.com, the company has an average rating of "Hold" and an average target price of $26.67.

Insider Buying and Selling

In related news, CEO Timothy J. Mattke sold 139,203 shares of the business's stock in a transaction on Thursday, August 7th. The stock was sold at an average price of $26.54, for a total transaction of $3,694,447.62. Following the sale, the chief executive officer owned 1,100,994 shares in the company, valued at $29,220,380.76. The trade was a 11.22% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, COO Salvatore A. Miosi sold 30,000 shares of the business's stock in a transaction on Friday, August 1st. The stock was sold at an average price of $26.22, for a total value of $786,600.00. Following the sale, the chief operating officer owned 249,401 shares in the company, valued at $6,539,294.22. This represents a 10.74% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 189,203 shares of company stock worth $5,010,848 in the last 90 days. Insiders own 1.41% of the company's stock.

MGIC Investment Price Performance

NYSE:MTG traded down $0.05 on Tuesday, hitting $27.29. The company had a trading volume of 586,710 shares, compared to its average volume of 2,177,508. The stock has a market capitalization of $6.29 billion, a price-to-earnings ratio of 8.95, a PEG ratio of 1.99 and a beta of 0.90. 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 firm has a 50 day moving average of $26.57 and a two-hundred day moving average of $25.37. MGIC Investment Corporation has a 52 week low of $21.94 and a 52 week high of $28.67.

MGIC Investment (NYSE:MTG - Get Free Report) last issued its quarterly earnings data on Wednesday, July 30th. The insurance provider reported $0.82 EPS for the quarter, beating the consensus estimate of $0.70 by $0.12. The business had revenue of $304.25 million during the quarter, compared to the consensus estimate of $306.25 million. MGIC Investment had a net margin of 62.58% and a return on equity of 14.73%. The firm's revenue was down .3% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $0.77 EPS. On average, research analysts anticipate that MGIC Investment Corporation will post 2.71 earnings per share for the current year.

MGIC Investment Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, August 21st. Investors of record on Thursday, August 7th will be given a dividend of $0.15 per share. The ex-dividend date is Thursday, August 7th. This represents a $0.60 dividend on an annualized basis and a yield of 2.2%. This is an increase from MGIC Investment's previous quarterly dividend of $0.13. MGIC Investment's dividend payout ratio is presently 19.67%.

MGIC Investment declared that its board has initiated a stock buyback plan on Thursday, April 24th that allows the company to buyback $750.00 million in shares. This buyback authorization allows the insurance provider to reacquire up to 12.5% of its shares through open market purchases. Shares buyback plans are typically a sign that the company's board believes its shares are undervalued.

MGIC Investment Profile

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.