Norges Bank Makes New Investment in MGIC Investment Corporation $MTG

Key Points

• Norges Bank disclosed a new fourth-quarter position in MGIC Investment, buying 3.29 million shares valued at about $96.2 million, or roughly 1.47% of the company.
• MGIC Investment reported Q1 earnings of $0.76 per share, topping analyst estimates, though revenue came in slightly below expectations and declined 3% from a year earlier.
• The company announced a $750 million share buyback and a quarterly dividend of $0.15 per share, while analysts maintain a consensus Hold rating with a $28.25 price target.

Norges Bank acquired a new position in shares of MGIC Investment Corporation (NYSE:MTG - Free Report) during the 4th quarter, according to its most recent Form 13F filing with the SEC. The firm acquired 3,293,922 shares of the insurance provider's stock, valued at approximately $96,248,000. Norges Bank owned about 1.47% of MGIC Investment as of its most recent filing with the SEC.

Several other hedge funds and other institutional investors also recently bought and sold shares of the business. Compound Planning Inc. grew its position in MGIC Investment by 5.3% during the 3rd quarter. Compound Planning Inc. now owns 7,788 shares of the insurance provider's stock worth $221,000 after purchasing an additional 389 shares during the last quarter. SBI Securities Co. Ltd. grew its position in MGIC Investment by 61.1% during the 3rd quarter. SBI Securities Co. Ltd. now owns 1,041 shares of the insurance provider's stock worth $30,000 after purchasing an additional 395 shares during the last quarter. Waddell & Associates LLC lifted its stake in shares of MGIC Investment by 5.3% in the 3rd quarter. Waddell & Associates LLC now owns 8,090 shares of the insurance provider's stock worth $230,000 after acquiring an additional 410 shares during the period. Clearstead Advisors LLC lifted its stake in shares of MGIC Investment by 24.7% in the 3rd quarter. Clearstead Advisors LLC now owns 2,209 shares of the insurance provider's stock worth $63,000 after acquiring an additional 438 shares during the period. Finally, EverSource Wealth Advisors LLC lifted its stake in shares of MGIC Investment by 3.9% in the 3rd quarter. EverSource Wealth Advisors LLC now owns 13,896 shares of the insurance provider's stock worth $394,000 after acquiring an additional 524 shares during the period. 95.58% of the stock is owned by hedge funds and other institutional investors.

MGIC Investment Stock Up 1.5%

MTG stock opened at $25.50 on Friday. MGIC Investment Corporation has a one year low of $24.69 and a one year high of $29.97. The stock has a market capitalization of $5.39 billion, a PE ratio of 8.10, a price-to-earnings-growth ratio of 1.73 and a beta of 0.68. The company has a debt-to-equity ratio of 0.13, a quick ratio of 1.14 and a current ratio of 1.14. The company has a fifty day moving average of $26.67 and a 200-day moving average of $27.21.

MGIC Investment (NYSE:MTG - Get Free Report) last announced its quarterly earnings results on Wednesday, April 29th. The insurance provider reported $0.76 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.73 by $0.03. The business had revenue of $297.08 million during the quarter, compared to the consensus estimate of $303.12 million. MGIC Investment had a net margin of 59.63% and a return on equity of 14.01%. The business's revenue was down 3.0% compared to the same quarter last year. During the same quarter last year, the firm posted $0.75 EPS. As a group, analysts expect that MGIC Investment Corporation will post 3.06 EPS for the current year.

MGIC Investment Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Thursday, May 21st. Stockholders of record on Wednesday, May 6th were issued a $0.15 dividend. This represents a $0.60 dividend on an annualized basis and a dividend yield of 2.4%. The ex-dividend date was Wednesday, May 6th. MGIC Investment's dividend payout ratio (DPR) is currently 19.05%.

MGIC Investment declared that its Board of Directors has initiated a share buyback plan on Thursday, April 23rd that authorizes the company to repurchase $750.00 million in shares. This repurchase authorization authorizes the insurance provider to reacquire up to 12.4% of its stock through open market purchases. Stock repurchase plans are generally a sign that the company's leadership believes its stock is undervalued.

Wall Street Analysts Forecast Growth

MTG has been the subject of several recent analyst reports. Keefe, Bruyette & Woods raised their target price on shares of MGIC Investment from $28.00 to $29.00 and gave the stock a "market perform" rating in a research note on Friday, April 10th. Barclays reduced their target price on shares of MGIC Investment from $29.00 to $28.00 and set an "equal weight" rating for the company in a research note on Friday, May 1st. UBS Group reduced their target price on shares of MGIC Investment from $29.50 to $28.00 and set a "neutral" rating for the company in a research note on Thursday, March 12th. Finally, Royal Bank Of Canada initiated coverage on shares of MGIC Investment in a research note on Friday, May 22nd. They issued a "sector perform" rating and a $28.00 target price for the company. One analyst has rated the stock with a Buy rating and four have assigned a Hold rating to the stock. According to MarketBeat, MGIC Investment has a consensus rating of "Hold" and a consensus price target of $28.25.

Insider Activity

In other news, COO Salvatore A. Miosi sold 10,931 shares of the stock in a transaction dated Wednesday, April 1st. The shares were sold at an average price of $26.25, for a total value 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 sale was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Paula C. Maggio sold 20,937 shares of the stock in a transaction dated Friday, May 29th. The shares were sold at an average price of $25.55, for a total transaction of $534,940.35. Following the completion of the transaction, the executive vice president owned 169,620 shares of the company's stock, valued at $4,333,791. This represents a 10.99% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 171,070 shares of company stock worth $4,509,340 in the last 90 days. 1.34% of the stock is currently owned by corporate insiders.

MGIC Investment Profile

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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