NewEdge Wealth LLC Buys 57,962 Shares of MGIC Investment Corporation $MTG

Key Points

• NewEdge Wealth LLC increased its MGIC Investment stake by 2.7% in the fourth quarter, buying 57,962 more shares and bringing its total holding to 2,183,602 shares valued at about $63.8 million.
• MGIC Investment reported solid quarterly earnings, posting $0.76 EPS to beat estimates, though revenue came in slightly below expectations and was down 3% from a year ago.
• The company is returning cash to shareholders through a new $750 million share buyback authorization and a quarterly dividend of $0.15 per share, implying a 2.2% annualized yield.

NewEdge Wealth LLC raised its stake in MGIC Investment Corporation (NYSE:MTG - Free Report) by 2.7% during the fourth quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 2,183,602 shares of the insurance provider's stock after acquiring an additional 57,962 shares during the period. MGIC Investment makes up 0.7% of NewEdge Wealth LLC's portfolio, making the stock its 28th biggest position. NewEdge Wealth LLC owned approximately 0.98% of MGIC Investment worth $63,805,000 as of its most recent filing with the Securities and Exchange Commission.

Several other institutional investors and hedge funds have also recently modified their holdings of the stock. Newbridge Financial Services Group Inc. purchased a new stake in MGIC Investment during the 3rd quarter valued at about $28,000. SBI Securities Co. Ltd. raised its holdings in MGIC Investment by 61.1% in the third quarter. SBI Securities Co. Ltd. now owns 1,041 shares of the insurance provider's stock worth $30,000 after buying an additional 395 shares during the last quarter. V Square Quantitative Management LLC purchased a new position in MGIC Investment in the fourth quarter worth about $36,000. Root Financial Partners LLC bought a new position in shares of MGIC Investment in the third quarter worth approximately $38,000. Finally, Whittier Trust Co. of Nevada Inc. grew its holdings in shares of MGIC Investment by 58.0% during the third quarter. Whittier Trust Co. of Nevada Inc. now owns 1,365 shares of the insurance provider's stock valued at $38,000 after buying an additional 501 shares during the last quarter. 95.58% of the stock is currently owned by institutional investors.

MGIC Investment Stock Performance

Shares of MTG stock opened at $26.79 on Friday. 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 50 day moving average price of $26.88 and a 200-day moving average price of $27.48. MGIC Investment Corporation has a 52 week low of $24.77 and a 52 week high of $29.97. The firm has a market capitalization of $5.66 billion, a PE ratio of 8.50, a P/E/G ratio of 1.63 and a beta of 0.71.

MGIC Investment (NYSE:MTG - Get Free Report) last issued its earnings results on Wednesday, April 29th. The insurance provider reported $0.76 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.73 by $0.03. The company had revenue of $297.08 million for the quarter, compared to analysts' expectations of $303.12 million. MGIC Investment had a net margin of 59.63% and a return on equity of 14.01%. The firm's quarterly revenue was down 3.0% on a year-over-year basis. During the same quarter last year, the company posted $0.75 earnings per share. As a group, equities research analysts expect that MGIC Investment Corporation will post 3.07 earnings per share for the current year.

MGIC Investment announced that its Board of Directors has approved a share buyback plan on Thursday, April 23rd that allows the company to buyback $750.00 million in shares. This buyback authorization allows the insurance provider to purchase up to 12.4% of its shares through open market purchases. Shares buyback plans are typically an indication that the company's management believes its shares are undervalued.

MGIC Investment Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, May 21st. Investors of record on Wednesday, May 6th will be issued a $0.15 dividend. The ex-dividend date of this dividend is Wednesday, May 6th. This represents a $0.60 annualized dividend and a dividend yield of 2.2%. MGIC Investment's payout ratio is presently 19.05%.

Insiders Place Their Bets

In other news, CEO Timothy J. Mattke sold 139,202 shares of the company's stock in a transaction dated 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 owned 1,118,005 shares of the company's stock, valued at $29,615,952.45. This represents a 11.07% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, COO Salvatore A. Miosi sold 10,931 shares of the stock in a transaction that occurred 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 completion of the transaction, the chief operating officer owned 590,951 shares in the company, valued at $15,512,463.75. This trade represents a 1.82% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 1.34% of the stock is currently owned by corporate insiders.

Wall Street Analyst Weigh In

Several equities research analysts recently weighed in on the stock. UBS Group reduced their price target 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. Barclays cut their target price on MGIC Investment from $29.00 to $28.00 and set an "equal weight" rating on the stock in a research note on Friday, May 1st. Keefe, Bruyette & Woods lifted their target price on MGIC Investment from $28.00 to $29.00 and gave the stock a "market perform" rating in a report on Friday, April 10th. Finally, Weiss Ratings cut MGIC Investment from a "buy (a-)" rating to a "buy (b+)" rating in a research note on Thursday, February 5th. One equities research analyst has rated the stock with a Buy rating and four have issued a Hold rating to the company's stock. According to data from MarketBeat, the stock currently has a consensus rating of "Hold" and a consensus price target of $28.25.

About MGIC Investment

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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