Assetmark Inc. Sells 895,257 Shares of MGIC Investment Corporation (NYSE:MTG)

Key Points

• Assetmark Inc. significantly reduced its stake in MGIC Investment Corporation (MTG) by 87.1% in Q1, owning only 132,234 shares after selling 895,257 shares, which valued the holding at approximately $3.3 million.
• MGIC recently announced a quarterly dividend increase from $0.13 to $0.15, representing a 2.34% annualized dividend yield and a payout ratio of 19.93%.
• Analysts have set a consensus rating of "Hold" for MTG, with a price target averaging around $26.88, following various target price adjustments by firms such as Keefe, Bruyette & Woods and Barclays.

Assetmark Inc. lowered its stake in shares of MGIC Investment Corporation (NYSE:MTG - Free Report) by 87.1% in the first quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The firm owned 132,234 shares of the insurance provider's stock after selling 895,257 shares during the period. Assetmark Inc. owned about 0.06% of MGIC Investment worth $3,277,000 as of its most recent SEC filing.

A number of other institutional investors also recently modified their holdings of the stock. Raymond James Financial Inc. bought a new position in MGIC Investment in the 4th quarter worth $1,740,000. Norges Bank bought a new position in shares of MGIC Investment during the 4th quarter worth about $85,908,000. New Age Alpha Advisors LLC bought a new position in shares of MGIC Investment during the 4th quarter worth about $867,000. Pictet Asset Management Holding SA increased its holdings in shares of MGIC Investment by 8.5% during the 4th quarter. Pictet Asset Management Holding SA now owns 41,327 shares of the insurance provider's stock worth $980,000 after purchasing an additional 3,249 shares during the period. Finally, Physician Wealth Advisors Inc. bought a new position in shares of MGIC Investment during the 4th quarter worth about $54,000. Institutional investors and hedge funds own 95.58% of the company's stock.

Insider Buying and Selling

In related news, EVP Paula C. Maggio sold 20,000 shares of the stock in a transaction on Friday, May 30th. The shares were sold at an average price of $26.49, for a total transaction of $529,800.00. Following the completion of the transaction, the executive vice president owned 157,395 shares in the company, valued at approximately $4,169,393.55. This represents a 11.27% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Insiders own 1.05% of the company's stock.

Analysts Set New Price Targets

MTG has been the topic of several research reports. Compass Point restated a "neutral" rating and set a $28.00 price objective (up previously from $27.00) on shares of MGIC Investment in a report on Friday, May 23rd. Barclays lifted their target price 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 lifted their target price on shares of MGIC Investment from $26.00 to $27.00 and gave the company a "market perform" rating in a research report on Monday, July 7th. One investment analyst has rated the stock with a sell rating, five have assigned a hold rating and two have given a buy rating to the company. According to data from MarketBeat.com, the company currently has an average rating of "Hold" and a consensus price target of $26.88.

MGIC Investment Price Performance

Shares of MTG stock traded up $0.37 during trading hours on Friday, reaching $26.27. 2,465,659 shares of the company were exchanged, compared to its average volume of 2,199,162. MGIC Investment Corporation has a fifty-two week low of $21.94 and a fifty-two week high of $28.67. The stock's fifty day moving average is $26.50 and its two-hundred day moving average is $25.24. The company has a market cap of $6.24 billion, a price-to-earnings ratio of 8.61, a P/E/G ratio of 2.72 and a beta of 0.89. The company has a debt-to-equity ratio of 0.13, a current ratio of 1.25 and a quick ratio of 1.25.

MGIC Investment (NYSE:MTG - Get Free Report) last issued its earnings results on Wednesday, July 30th. The insurance provider reported $0.82 EPS for the quarter, beating the consensus estimate of $0.70 by $0.12. MGIC Investment had a net margin of 62.58% and a return on equity of 14.69%. The firm had revenue of $304.25 million during the quarter, compared to the consensus estimate of $306.25 million. During the same quarter in the prior year, the firm earned $0.77 earnings per share. The business's quarterly revenue was down .3% on a year-over-year basis. Sell-side analysts forecast that MGIC Investment Corporation will post 2.71 earnings per share for the current fiscal year.

MGIC Investment declared that its Board of Directors has approved a stock buyback program 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 stock through open market purchases. Stock buyback programs are typically a sign that the company's management believes its stock is undervalued.

MGIC Investment Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, August 21st. Investors of record on Thursday, August 7th will be issued a dividend of $0.15 per share. The ex-dividend date is Thursday, August 7th. This is a positive change from MGIC Investment's previous quarterly dividend of $0.13. This represents a $0.60 annualized dividend and a yield of 2.3%. MGIC Investment's dividend payout ratio is currently 17.28%.

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.