State of Alaska Department of Revenue Sells 153,009 Shares of MGIC Investment Corporation $MTG

Key Points

• State of Alaska Department of Revenue cut its stake in MGIC by 87.2%, selling 153,009 shares in Q4 and leaving it with 22,383 shares worth about $654,000.
• MGIC's board authorized a $750 million share buyback (up to 12.4% of shares) and approved a quarterly dividend of $0.15 per share (annual yield ~2.1%), signaling management views the stock as potentially undervalued.
• Insiders sold 200,133 shares (~$5.34 million) over the last quarter even as institutional investors hold 95.58% of the stock, and analysts' consensus remains a "Hold" with an average target of $28.50.

State of Alaska Department of Revenue lowered its holdings in shares of MGIC Investment Corporation (NYSE:MTG - Free Report) by 87.2% in the fourth quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The firm owned 22,383 shares of the insurance provider's stock after selling 153,009 shares during the quarter. State of Alaska Department of Revenue's holdings in MGIC Investment were worth $654,000 as of its most recent SEC filing.

Other hedge funds and other institutional investors have also bought and sold shares of the company. Alps Advisors Inc. lifted its holdings in MGIC Investment by 60.6% during the 3rd quarter. Alps Advisors Inc. now owns 701,943 shares of the insurance provider's stock valued at $19,914,000 after buying an additional 264,968 shares in the last quarter. Lingohr Asset Management GmbH grew its stake in MGIC Investment by 1,625.5% in the 3rd quarter. Lingohr Asset Management GmbH now owns 233,534 shares of the insurance provider's stock worth $6,625,000 after acquiring an additional 220,000 shares in the last quarter. Thrivent Financial for Lutherans grew its stake in MGIC Investment by 17.8% in the 3rd quarter. Thrivent Financial for Lutherans now owns 472,083 shares of the insurance provider's stock worth $13,393,000 after acquiring an additional 71,474 shares in the last quarter. Tudor Investment Corp ET AL increased its position in shares of MGIC Investment by 106.1% during the third quarter. Tudor Investment Corp ET AL now owns 687,445 shares of the insurance provider's stock worth $19,503,000 after acquiring an additional 353,935 shares during the period. Finally, Moody Aldrich Partners LLC purchased a new position in shares of MGIC Investment during the third quarter worth approximately $4,648,000. Hedge funds and other institutional investors own 95.58% of the company's stock.

MGIC Investment Stock Performance

Shares of NYSE:MTG opened at $28.79 on Friday. The company has a market capitalization of $6.19 billion, a price-to-earnings ratio of 9.17, a price-to-earnings-growth ratio of 2.24 and a beta of 0.79. MGIC Investment Corporation has a 52 week low of $24.00 and a 52 week high of $29.97. The company has a quick ratio of 1.52, a current ratio of 1.52 and a debt-to-equity ratio of 0.13. The firm has a 50 day moving average of $26.68 and a 200 day moving average of $27.43.

MGIC Investment (NYSE:MTG - Get Free Report) last announced its earnings results on Monday, February 2nd. The insurance provider reported $0.75 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.73 by $0.02. MGIC Investment had a return on equity of 14.33% and a net margin of 60.84%.During the same quarter in the previous year, the firm posted $0.72 EPS. MGIC Investment's revenue was down .9% compared to the same quarter last year. On average, sell-side analysts predict that MGIC Investment Corporation will post 3.08 earnings per share for the current fiscal year.

MGIC Investment announced that its Board of Directors has authorized a stock buyback plan on Thursday, April 23rd that permits the company to repurchase $750.00 million in shares. This repurchase authorization permits the insurance provider to repurchase up to 12.4% of its stock through open market purchases. Stock repurchase plans are typically an indication that the company's leadership believes its shares are undervalued.

MGIC Investment Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, May 21st. Investors of record on Wednesday, May 6th will be given a dividend of $0.15 per share. The ex-dividend date of this dividend is Wednesday, May 6th. This represents a $0.60 dividend on an annualized basis and a yield of 2.1%. MGIC Investment's dividend payout ratio (DPR) is presently 19.11%.

Insider Buying and Selling at MGIC Investment

In other MGIC Investment news, EVP Paula C. Maggio sold 20,000 shares of the business's stock in a transaction dated Friday, February 6th. The shares were sold at an average price of $27.51, for a total value of $550,200.00. Following the completion of the transaction, the executive vice president directly owned 114,689 shares in the company, valued at approximately $3,155,094.39. The trade was a 14.85% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, CEO Timothy J. Mattke sold 139,202 shares of the stock in a transaction dated Thursday, April 2nd. The shares were sold at an average price of $26.49, for a total transaction of $3,687,460.98. Following the sale, the chief executive officer directly owned 1,118,005 shares of the company's stock, valued at approximately $29,615,952.45. The trade was a 11.07% 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. Insiders have sold 200,133 shares of company stock worth $5,342,700 over the last quarter. Insiders own 1.34% of the company's stock.

Analyst Ratings Changes

MTG has been the subject of a number of research reports. Weiss Ratings lowered MGIC Investment from a "buy (a-)" rating to a "buy (b+)" rating in a report on Thursday, February 5th. Keefe, Bruyette & Woods raised their price objective on MGIC Investment from $28.00 to $29.00 and gave the stock a "market perform" rating in a report on Friday, April 10th. UBS Group decreased their target price on MGIC Investment from $29.50 to $28.00 and set a "neutral" rating for the company in a research report on Thursday, March 12th. Finally, Barclays upped their target price on MGIC Investment from $28.00 to $29.00 and gave the stock an "equal weight" rating in a report on Monday, April 6th. One research analyst has rated the stock with a Buy rating and four have issued a Hold rating to the stock. According to MarketBeat, the company currently has an average rating of "Hold" and an average price target of $28.50.

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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