Charles Schwab Investment Management Inc. Sells 85,595 Shares of MGIC Investment Corporation $MTG

Key Points

• Charles Schwab Investment Management Inc. has reduced its stake in MGIC Investment Corporation by 3.3%, now owning approximately 1.05% of the company, valued at around $61.8 million.
• Insiders, including COO Salvatore A. Miosi, have sold significant shares recently, with the COO selling 30,000 shares for $786,600, reflecting a notable decrease in ownership.
• MGIC Investment has announced a quarterly dividend increase to $0.15 per share and initiated a $750 million share buyback program, indicating confidence in its stock valuation.

Charles Schwab Investment Management Inc. decreased its position in MGIC Investment Corporation (NYSE:MTG - Free Report) by 3.3% during the first quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor owned 2,493,733 shares of the insurance provider's stock after selling 85,595 shares during the period. Charles Schwab Investment Management Inc. owned approximately 1.05% of MGIC Investment worth $61,795,000 at the end of the most recent reporting period.

Several other institutional investors also recently bought and sold shares of MTG. Cullen Frost Bankers Inc. purchased a new stake in shares of MGIC Investment during the first quarter valued at approximately $33,000. Golden State Wealth Management LLC lifted its position 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. boosted its stake in MGIC Investment by 61.3% during the 1st quarter. UMB Bank n.a. now owns 2,660 shares of the insurance provider's stock valued at $66,000 after purchasing an additional 1,011 shares during the last quarter. Fifth Third Bancorp increased its holdings in shares of MGIC Investment by 20.1% in the 1st quarter. Fifth Third Bancorp now owns 2,749 shares of the insurance provider's stock worth $68,000 after purchasing an additional 461 shares in the last quarter. Finally, Versant Capital Management Inc increased its holdings in shares of MGIC Investment by 262.0% in the 1st quarter. Versant Capital Management Inc now owns 4,811 shares of the insurance provider's stock worth $119,000 after purchasing an additional 3,482 shares in the last quarter. 95.58% of the stock is owned by hedge funds and other institutional investors.

Insider Activity

In related news, EVP Paula C. Maggio sold 20,000 shares of MGIC Investment stock in a transaction that occurred on Friday, May 30th. The stock was sold at an average price of $26.49, for a total transaction of $529,800.00. Following the sale, the executive vice president owned 157,395 shares of the company's stock, valued at approximately $4,169,393.55. This trade represents a 11.27% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, CEO Timothy J. Mattke sold 139,203 shares of the company's stock in a transaction that occurred on Thursday, August 7th. The stock was sold at an average price of $26.54, for a total value of $3,694,447.62. Following the completion of the transaction, the chief executive officer owned 1,100,994 shares of the company's stock, valued at $29,220,380.76. The trade was a 11.22% decrease in their ownership of the stock. 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 three months. Company insiders own 1.41% of the company's stock.

Wall Street Analysts Forecast Growth

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

MGIC Investment Stock Performance

MTG stock traded down $0.30 during midday trading on Monday, reaching $27.21. 469,990 shares of the company's stock traded hands, compared to its average volume of 2,181,981. The company has a current ratio of 1.46, a quick ratio of 1.46 and a debt-to-equity ratio of 0.13. MGIC Investment Corporation has a 52-week low of $21.94 and a 52-week high of $28.67. The stock has a market cap of $6.27 billion, a P/E ratio of 8.92, a PEG ratio of 2.02 and a beta of 0.90. The stock's 50-day moving average is $26.68 and its 200 day moving average is $25.43.

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

MGIC Investment announced that its Board of Directors has approved a stock repurchase program on Thursday, April 24th that authorizes the company to repurchase $750.00 million in outstanding shares. This repurchase authorization authorizes the insurance provider to reacquire up to 12.5% of its stock through open market purchases. Stock repurchase programs are often an indication that the company's leadership believes its shares are undervalued.

MGIC Investment Increases Dividend

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

MGIC Investment Company 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.