Redwood Investment Management LLC Trims Position in MGIC Investment Corporation $MTG

Key Points

• Redwood Investment Management LLC has reduced its holdings in MGIC Investment by 10.0%, now owning 205,281 shares valued at approximately $5.09 million.
• Several institutional investors have significantly increased their investments in MGIC Investment, with some such as Golden State Wealth Management raising their stake by 7,837.0%.
• MGIC Investment recently announced an increase in its quarterly dividend from $0.13 to $0.15, representing a 2.1% yield with a payout ratio of 19.67%.

Redwood Investment Management LLC decreased its holdings in shares of MGIC Investment Corporation (NYSE:MTG - Free Report) by 10.0% during the first quarter, according to its most recent filing with the SEC. The firm owned 205,281 shares of the insurance provider's stock after selling 22,904 shares during the period. MGIC Investment accounts for about 0.6% of Redwood Investment Management LLC's portfolio, making the stock its 27th largest position. Redwood Investment Management LLC owned 0.09% of MGIC Investment worth $5,087,000 as of its most recent SEC filing.

Other institutional investors have also added to or reduced their stakes in the company. Cullen Frost Bankers Inc. purchased a new position in MGIC Investment during the 1st quarter valued at about $33,000. Golden State Wealth Management LLC boosted its holdings in shares of MGIC Investment by 7,837.0% in the 1st quarter. Golden State Wealth Management LLC now owns 2,143 shares of the insurance provider's stock valued at $53,000 after buying an additional 2,116 shares in the last quarter. Headlands Technologies LLC boosted its holdings in shares of MGIC Investment by 619.2% in the 1st quarter. Headlands Technologies LLC now owns 2,280 shares of the insurance provider's stock valued at $56,000 after buying an additional 1,963 shares in the last quarter. UMB Bank n.a. boosted its holdings in shares of MGIC Investment by 61.3% in the 1st quarter. UMB Bank n.a. now owns 2,660 shares of the insurance provider's stock valued at $66,000 after buying an additional 1,011 shares in the last quarter. Finally, Fifth Third Bancorp boosted its holdings in shares of MGIC Investment by 20.1% in the 1st quarter. Fifth Third Bancorp now owns 2,749 shares of the insurance provider's stock valued at $68,000 after buying an additional 461 shares in the last quarter. Hedge funds and other institutional investors own 95.58% of the company's stock.

Analysts Set New Price Targets

A number of research firms have recently weighed in on MTG. Compass Point restated a "neutral" rating and issued a $28.00 price target (up from $27.00) on shares of MGIC Investment in a report on Friday, May 23rd. Barclays lifted their target price on shares of MGIC Investment from $26.00 to $27.00 and gave the stock an "equal weight" rating in a research note on Tuesday, July 8th. Finally, Keefe, Bruyette & Woods lifted their target price 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. Five investment 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 an average target price of $26.67.

MGIC Investment Stock Performance

Shares of NYSE MTG opened at $27.94 on Tuesday. The company has a current ratio of 1.46, a quick ratio of 1.46 and a debt-to-equity ratio of 0.13. MGIC Investment Corporation has a 12 month low of $21.94 and a 12 month high of $28.67. The company has a 50 day simple moving average of $26.81 and a two-hundred day simple moving average of $25.52. The stock has a market cap of $6.44 billion, a price-to-earnings ratio of 9.16, a PEG ratio of 2.04 and a beta of 0.90.

MGIC Investment (NYSE:MTG - Get Free Report) last posted 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. MGIC Investment had a net margin of 62.58% and a return on equity of 14.73%. The firm had revenue of $304.25 million during the quarter, compared to analysts' expectations of $306.25 million. During the same period in the previous year, the business posted $0.77 EPS. The business's revenue was down .3% compared to the same quarter last year. As a group, analysts predict that MGIC Investment Corporation will post 2.71 earnings per share for the current year.

MGIC Investment Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Thursday, August 21st. Investors of record on Thursday, August 7th were paid a $0.15 dividend. The ex-dividend date was Thursday, August 7th. This represents a $0.60 annualized dividend and a dividend 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 presently 19.67%.

Insider Activity at MGIC Investment

In related news, EVP Paula C. Maggio sold 20,000 shares of the business's stock in a transaction on Friday, May 30th. The shares were sold at an average price of $26.49, for a total value of $529,800.00. Following the completion of the sale, the executive vice president owned 157,395 shares of the company's stock, valued at approximately $4,169,393.55. The trade was a 11.27% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, COO Salvatore A. Miosi sold 30,000 shares of the business's stock in a transaction on Friday, August 1st. The stock was sold at an average price of $26.22, for a total transaction of $786,600.00. Following the completion of the sale, the chief operating officer directly owned 249,401 shares of the company's stock, valued at approximately $6,539,294.22. The trade was a 10.74% decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 189,203 shares of company stock worth $5,010,848 in the last three months. Company insiders own 1.41% of the company's stock.

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.

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