Royal Bank of Canada Sells 96,065 Shares of MGIC Investment Corporation $MTG

Key Points

• Royal Bank of Canada cut its MGIC Investment stake by 77.5% in the first quarter, selling 96,065 shares and retaining 27,938 shares valued at approximately $734,000. Institutional investors still own 95.58% of the company.
• MGIC Investment reported quarterly EPS of $0.87, beating the $0.76 consensus estimate, while revenue of $295.39 million fell slightly short of expectations and declined 2.9% year over year.
• The company raised its quarterly dividend from $0.15 to $0.17 per share, equivalent to an annualized $0.68 dividend and a 2.2% yield. Analysts maintain a “Moderate Buy” consensus with an average price target of $30.60.

Royal Bank of Canada reduced its stake in shares of MGIC Investment Corporation (NYSE:MTG - Free Report) by 77.5% during the first quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The institutional investor owned 27,938 shares of the insurance provider's stock after selling 96,065 shares during the period. Royal Bank of Canada's holdings in MGIC Investment were worth $734,000 at the end of the most recent reporting period.

Other hedge funds and other institutional investors also recently added to or reduced their stakes in the company. Newbridge Financial Services Group Inc. purchased a new stake in shares of MGIC Investment in the third quarter worth $28,000. SBI Securities Co. Ltd. boosted its holdings in MGIC Investment by 40.3% in the 4th quarter. SBI Securities Co. Ltd. now owns 1,461 shares of the insurance provider's stock worth $43,000 after buying an additional 420 shares during the period. Geneos Wealth Management Inc. increased its stake in MGIC Investment by 88.0% in the 1st quarter. Geneos Wealth Management Inc. now owns 1,745 shares of the insurance provider's stock worth $43,000 after buying an additional 817 shares in the last quarter. Kestra Advisory Services LLC purchased a new stake in MGIC Investment in the 4th quarter worth $79,000. Finally, Danske Bank A S bought a new stake in MGIC Investment during the third quarter valued at about $82,000. 95.58% of the stock is owned by hedge funds and other institutional investors.

MGIC Investment Price Performance

MTG opened at $30.85 on Monday. The business has a fifty day moving average of $29.00 and a 200 day moving average of $27.40. 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 stock has a market cap of $6.33 billion, a P/E ratio of 9.64, a PEG ratio of 0.79 and a beta of 0.66. MGIC Investment Corporation has a 52-week low of $24.69 and a 52-week high of $31.89.

MGIC Investment (NYSE:MTG - Get Free Report) last announced its quarterly earnings data on Wednesday, July 29th. The insurance provider reported $0.87 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.76 by $0.11. The company had revenue of $295.39 million for the quarter, compared to analysts' expectations of $297.54 million. MGIC Investment had a return on equity of 13.90% and a net margin of 59.20%.MGIC Investment's revenue was down 2.9% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $0.82 earnings per share. As a group, sell-side analysts anticipate that MGIC Investment Corporation will post 3.24 EPS for the current year.

MGIC Investment Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Thursday, August 20th. Shareholders of record on Wednesday, August 5th were issued a dividend of $0.17 per share. This is an increase from MGIC Investment's previous quarterly dividend of $0.15. This represents a $0.68 dividend on an annualized basis and a yield of 2.2%. The ex-dividend date was Wednesday, August 5th. MGIC Investment's dividend payout ratio (DPR) is currently 21.25%.

Analyst Ratings Changes

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

Insiders Place Their Bets

In other MGIC Investment news, COO Salvatore A. Miosi sold 30,000 shares of the stock in a transaction on Monday, June 8th. The stock was sold at an average price of $25.38, for a total transaction of $761,400.00. Following the sale, the chief operating officer owned 560,951 shares of the company's stock, valued at approximately $14,236,936.38. This trade represents a 5.08% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Paula C. Maggio sold 20,000 shares of MGIC Investment stock in a transaction on Friday, August 7th. The shares were sold at an average price of $30.30, for a total value of $606,000.00. Following the completion of the transaction, 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. 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. In the last 90 days, insiders have sold 70,937 shares of company stock valued at $1,902,340. 1.34% of the stock is 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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