Nuveen LLC Takes Position in MGIC Investment Corporation $MTG

Key Points

• Nuveen LLC has made a new investment of approximately $13.27 million in MGIC Investment Corporation, acquiring around 535,360 shares during the first quarter.
• MGIC Investment has approved a $750 million stock buyback program, indicating confidence in its valuation and financial health.
• The company announced an increase in its quarterly dividend to $0.15 per share, reflecting a dividend yield of 2.2% and a payout ratio of 19.67%.

Nuveen LLC purchased a new stake in MGIC Investment Corporation (NYSE:MTG - Free Report) in the first quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The institutional investor purchased 535,360 shares of the insurance provider's stock, valued at approximately $13,266,000. Nuveen LLC owned approximately 0.23% of MGIC Investment at the end of the most recent reporting period.

Other large investors have also made changes to their positions in the company. Cullen Frost Bankers Inc. purchased a new stake in shares of MGIC Investment in the first quarter valued at approximately $33,000. Golden State Wealth Management LLC grew its position in shares of MGIC Investment by 7,837.0% in the first quarter. Golden State Wealth Management LLC now owns 2,143 shares of the insurance provider's stock valued at $53,000 after purchasing an additional 2,116 shares in the last quarter. Headlands Technologies LLC grew its position in shares of MGIC Investment by 619.2% in the first quarter. Headlands Technologies LLC now owns 2,280 shares of the insurance provider's stock valued at $56,000 after purchasing an additional 1,963 shares in the last quarter. UMB Bank n.a. grew its position in shares of MGIC Investment by 61.3% in the first 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 in the last quarter. Finally, Fifth Third Bancorp grew its position in shares of MGIC Investment by 20.1% in the first quarter. Fifth Third Bancorp now owns 2,749 shares of the insurance provider's stock valued at $68,000 after purchasing an additional 461 shares in the last quarter. 95.58% of the stock is currently owned by hedge funds and other institutional investors.

Insider Buying and Selling

In related news, EVP Paula C. Maggio sold 20,000 shares of MGIC Investment 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 sale, the executive vice president directly owned 157,395 shares in the company, valued at $4,169,393.55. This trade represents a 11.27% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CEO Timothy J. Mattke sold 139,203 shares of MGIC Investment stock in a transaction on Thursday, August 7th. The stock was sold at an average price of $26.54, for a total transaction of $3,694,447.62. Following the sale, the chief executive officer owned 1,100,994 shares in the company, valued at $29,220,380.76. This represents 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 ninety days. 1.05% of the stock is owned by corporate insiders.

MGIC Investment Stock Up 0.6%

MTG stock traded up $0.16 during midday trading on Wednesday, hitting $28.01. The company's stock had a trading volume of 1,385,514 shares, compared to its average volume of 1,989,273. The company has a quick ratio of 1.46, a current 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 firm has a market capitalization of $6.46 billion, a P/E ratio of 9.18, a PEG ratio of 2.01 and a beta of 0.90. The firm has a 50-day simple moving average of $26.86 and a 200-day simple moving average of $25.55.

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

MGIC Investment Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Thursday, August 21st. Investors of record on Thursday, August 7th were paid a dividend of $0.15 per share. The ex-dividend date was Thursday, August 7th. This represents a $0.60 annualized dividend and a yield of 2.1%. This is an increase from MGIC Investment's previous quarterly dividend of $0.13. MGIC Investment's dividend payout ratio (DPR) is 19.67%.

Analyst Ratings Changes

Several analysts have recently weighed in on the stock. Barclays increased their price target 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. Keefe, Bruyette & Woods increased their price target on shares of MGIC Investment from $26.00 to $27.00 and gave the company a "market perform" rating in a research note on Monday, July 7th. Finally, Compass Point reissued 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. Five analysts have rated the stock with a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, the company has a consensus rating of "Reduce" and a consensus target price of $26.67.

About MGIC Investment

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.