NewEdge Wealth LLC Increases Stock Holdings in MGIC Investment Corporation (NYSE:MTG)

Key Points

• NewEdge Wealth LLC increased its stake in MGIC Investment Corporation by 4.0%, acquiring an additional 73,264 shares, bringing its total ownership to approximately 1.91 million shares.
• MGIC Investment's Board of Directors announced a $750 million share buyback plan, signaling their belief that the stock is undervalued.
• The company has declared a quarterly dividend of $0.15 per share, an increase from the previous dividend, reflecting a dividend yield of 2.3%.

NewEdge Wealth LLC boosted its stake in shares of MGIC Investment Corporation (NYSE:MTG - Free Report) by 4.0% in the 1st quarter, according to the company in its most recent disclosure with the SEC. The firm owned 1,911,085 shares of the insurance provider's stock after buying an additional 73,264 shares during the quarter. MGIC Investment makes up approximately 0.9% of NewEdge Wealth LLC's portfolio, making the stock its 24th largest holding. NewEdge Wealth LLC owned about 0.80% of MGIC Investment worth $47,357,000 as of its most recent SEC filing.

Other institutional investors and hedge funds have also recently added to or reduced their stakes in the company. KBC Group NV lifted its position in MGIC Investment by 10.2% during the first quarter. KBC Group NV now owns 11,417 shares of the insurance provider's stock valued at $283,000 after purchasing an additional 1,060 shares during the last quarter. Cerity Partners LLC increased its stake in shares of MGIC Investment by 59.2% in the first quarter. Cerity Partners LLC now owns 78,307 shares of the insurance provider's stock worth $1,940,000 after buying an additional 29,104 shares during the period. GAMMA Investing LLC increased its position in MGIC Investment by 39.1% during the 1st quarter. GAMMA Investing LLC now owns 6,068 shares of the insurance provider's stock valued at $150,000 after purchasing an additional 1,705 shares during the period. Allspring Global Investments Holdings LLC grew its position in shares of MGIC Investment by 50.1% in the 1st quarter. Allspring Global Investments Holdings LLC now owns 16,147 shares of the insurance provider's stock worth $406,000 after buying an additional 5,393 shares during the period. Finally, GSA Capital Partners LLP purchased a new stake in shares of MGIC Investment in the 1st quarter worth about $1,353,000. Institutional investors own 95.58% of the company's stock.

Insider Activity

In related news, EVP Paula C. Maggio sold 20,000 shares of the firm's 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 transaction, the executive vice president owned 157,395 shares in the company, valued at $4,169,393.55. This trade represents a 11.27% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. Also, COO Salvatore A. Miosi sold 30,000 shares of MGIC Investment stock in a transaction that occurred on Friday, August 1st. The shares were sold at an average price of $26.22, for a total value of $786,600.00. Following the completion of the transaction, the chief operating officer owned 249,401 shares in the company, valued at $6,539,294.22. This trade represents a 10.74% decrease in their ownership of the stock. The disclosure for this sale can be found here. 1.05% of the stock is currently owned by company insiders.

Analyst Ratings Changes

A number of brokerages recently issued reports on MTG. Compass Point reiterated a "neutral" rating and issued a $28.00 price target (up previously from $27.00) on shares of MGIC Investment in a research note on Friday, May 23rd. Barclays upped 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 note on Tuesday, July 8th. Finally, Keefe, Bruyette & Woods increased their price objective on shares of MGIC Investment from $26.00 to $27.00 and gave the stock a "market perform" rating in a research note on Monday, July 7th. One research analyst has rated the stock with a sell rating and five have given a hold rating to the company's stock. Based on data from MarketBeat.com, the stock has a consensus rating of "Hold" and an average price target of $26.67.

MGIC Investment Price Performance

Shares of MTG traded down $0.29 during trading hours on Thursday, hitting $26.60. 445,438 shares of the stock were exchanged, compared to its average volume of 2,180,524. The company has a debt-to-equity ratio of 0.13, a quick ratio of 1.46 and a current ratio of 1.46. MGIC Investment Corporation has a 12-month low of $21.94 and a 12-month high of $28.67. The company has a market cap of $6.13 billion, a price-to-earnings ratio of 8.72, a price-to-earnings-growth ratio of 1.97 and a beta of 0.90. The stock's 50-day moving average price is $26.52 and its two-hundred day moving average price is $25.30.

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

MGIC Investment declared that its Board of Directors has initiated a stock repurchase program on Thursday, April 24th that permits the company to buyback $750.00 million in shares. This buyback authorization permits the insurance provider to purchase up to 12.5% of its shares through open market purchases. Shares buyback programs are typically an indication that the company's board 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. Stockholders of record on Thursday, August 7th will be given a dividend of $0.15 per share. This is a boost from MGIC Investment's previous quarterly dividend of $0.13. The ex-dividend date of this dividend is Thursday, August 7th. This represents a $0.60 annualized dividend and a dividend yield of 2.3%. MGIC Investment's dividend payout ratio is 17.05%.

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.