Redwood Investment Management LLC Purchases New Position in MGIC Investment Corporation $MTG

Key Points

• Redwood Investment Management acquired 79,114 shares of MGIC Investment in the second quarter, worth approximately $2.23 million. Institutional investors collectively own 95.58% of the company.
• MGIC Investment reported quarterly EPS of $0.87, exceeding the $0.76 consensus estimate, while revenue declined 2.9% year over year to $295.39 million.
• The company increased its quarterly dividend from $0.15 to $0.17 per share, equating to an annualized dividend of $0.68 and a 2.2% yield. Analysts maintain a “Moderate Buy” consensus with an average price target of $30.60.

Redwood Investment Management LLC acquired a new position in MGIC Investment Corporation (NYSE:MTG - Free Report) in the second quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The fund acquired 79,114 shares of the insurance provider's stock, valued at approximately $2,231,000.

Several other hedge funds and other institutional investors have also added to or reduced their stakes in the business. BlackRock Inc. bought a new stake in shares of MGIC Investment in the 2nd quarter worth $618,467,000. AQR Capital Management LLC lifted its holdings in shares of MGIC Investment by 31.3% during the fourth quarter. AQR Capital Management LLC now owns 11,616,282 shares of the insurance provider's stock valued at $339,428,000 after purchasing an additional 2,771,533 shares in the last quarter. Geode Capital Management LLC lifted its holdings in shares of MGIC Investment by 2.8% during the fourth quarter. Geode Capital Management LLC now owns 5,371,470 shares of the insurance provider's stock valued at $163,368,000 after purchasing an additional 146,589 shares in the last quarter. Allianz Asset Management GmbH boosted its position in shares of MGIC Investment by 1.0% during the fourth quarter. Allianz Asset Management GmbH now owns 5,010,157 shares of the insurance provider's stock valued at $146,397,000 after buying an additional 48,064 shares during the last quarter. Finally, First Trust Advisors LP boosted its position in shares of MGIC Investment by 1.7% during the fourth quarter. First Trust Advisors LP now owns 4,609,318 shares of the insurance provider's stock valued at $134,684,000 after buying an additional 76,306 shares during the last quarter. 95.58% of the stock is owned by institutional investors.

MGIC Investment Price Performance

NYSE MTG opened at $31.27 on Thursday. The company has a 50-day moving average price of $29.31 and a 200-day moving average price of $27.50. MGIC Investment Corporation has a 52 week low of $24.69 and a 52 week high of $31.89. The company has a quick ratio of 1.19, a current ratio of 1.19 and a debt-to-equity ratio of 0.13. The firm has a market capitalization of $6.41 billion, a P/E ratio of 9.77, a PEG ratio of 0.79 and a beta of 0.66.

MGIC Investment (NYSE:MTG - Get Free Report) last announced its earnings results on Wednesday, July 29th. The insurance provider reported $0.87 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.76 by $0.11. MGIC Investment had a net margin of 59.20% and a return on equity of 13.90%. The company had revenue of $295.39 million during the quarter, compared to analyst estimates of $297.54 million. During the same period in the previous year, the business posted $0.82 earnings per share. The firm's quarterly revenue was down 2.9% compared to the same quarter last year. Equities research analysts anticipate that MGIC Investment Corporation will post 3.24 earnings per share for the current year.

MGIC Investment Increases Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Thursday, August 20th. Stockholders of record on Wednesday, August 5th were given a dividend of $0.17 per share. This represents a $0.68 dividend on an annualized basis and a dividend yield of 2.2%. The ex-dividend date of this dividend was Wednesday, August 5th. This is a positive change from MGIC Investment's previous quarterly dividend of $0.15. MGIC Investment's payout ratio is presently 21.25%.

Analysts Set New Price Targets

A number of brokerages have weighed in on MTG. Roth Capital reissued a "buy" rating and issued a $35.00 target price on shares of MGIC Investment in a research report on Thursday, July 30th. Keefe, Bruyette & Woods raised their price target on shares of MGIC Investment from $29.00 to $30.00 and gave the company a "market perform" rating in a report on Friday, July 31st. Royal Bank Of Canada lifted their price target on shares of MGIC Investment from $28.00 to $32.00 and gave the stock a "sector perform" rating in a research note on Friday, July 31st. Weiss Ratings upgraded shares of MGIC Investment from a "buy (b+)" rating to a "buy (a-)" rating in a research report on Wednesday, August 19th. Finally, Barclays dropped their target price on shares of MGIC Investment from $29.00 to $28.00 and set an "equal weight" rating on the stock in a report on Friday, May 1st. Two analysts have rated the stock with a Strong Buy rating, one has issued a Buy rating and four have given a Hold rating to the company. Based on data from MarketBeat.com, the company has an average rating of "Moderate Buy" and an average target price of $30.60.

Insider Buying and Selling at MGIC Investment

In other MGIC Investment news, EVP Paula C. Maggio sold 20,000 shares of the company's stock in a transaction dated Friday, August 7th. The stock was sold at an average price of $30.30, for a total value of $606,000.00. Following the completion of the sale, the executive vice president owned 149,620 shares in the company, valued at $4,533,486. This represents a 11.79% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, COO Salvatore A. Miosi sold 30,000 shares of the company's stock in a transaction dated Monday, June 8th. The stock was sold at an average price of $25.38, for a total value of $761,400.00. Following the completion of the sale, the chief operating officer owned 560,951 shares of the company's stock, valued at approximately $14,236,936.38. The trade was a 5.08% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 70,937 shares of company stock valued at $1,902,340 over the last 90 days. 1.34% of the stock is currently owned by company insiders.

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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