MGIC Investment Corporation $MTG Shares Sold by Swiss National Bank

Key Points

• Swiss National Bank reduced its stake in MGIC Investment Corporation by 3.7%, selling 18,900 shares during the first quarter, leaving it with a total of 490,900 shares valued at $12.16 million.
• MGIC Investment recently announced a $750 million share repurchase program, indicating management's belief that the stock is undervalued, along with an increase in its quarterly dividend to $0.15 per share.
• Despite recent positive earnings, MGIC shares fell 1.2% to $27.52, hovering near a 12-month high of $28.67 and a low of $21.94.

Swiss National Bank lessened its stake in shares of MGIC Investment Corporation (NYSE:MTG - Free Report) by 3.7% during the 1st quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The firm owned 490,900 shares of the insurance provider's stock after selling 18,900 shares during the period. Swiss National Bank owned 0.21% of MGIC Investment worth $12,165,000 as of its most recent filing with the Securities & Exchange Commission.

Several other institutional investors have also modified their holdings of the stock. Cullen Frost Bankers Inc. purchased a new stake in MGIC Investment in the 1st quarter valued at about $33,000. Golden State Wealth Management LLC raised its holdings in 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 during the period. Headlands Technologies LLC raised its holdings in 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 during the period. UMB Bank n.a. raised its holdings in 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 during the period. Finally, Fifth Third Bancorp raised its holdings in 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 during the period. Hedge funds and other institutional investors own 95.58% of the company's stock.

Insider Transactions at MGIC Investment

In other news, CEO Timothy J. Mattke sold 139,203 shares of the business's stock in a transaction dated 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 completion of the transaction, the chief executive officer directly owned 1,100,994 shares of the company's stock, valued at approximately $29,220,380.76. The trade was a 11.22% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, COO Salvatore A. Miosi sold 30,000 shares of the business's stock in a transaction dated Friday, August 1st. The stock was sold at an average price of $26.22, for a total value of $786,600.00. Following the transaction, the chief operating officer directly owned 249,401 shares of the company's stock, valued at approximately $6,539,294.22. This represents a 10.74% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 189,203 shares of company stock valued at $5,010,848. 1.41% of the stock is currently owned by corporate insiders.

Analyst Ratings Changes

Several brokerages recently issued reports on MTG. Keefe, Bruyette & Woods boosted their price objective on shares of MGIC Investment from $26.00 to $27.00 and gave the company a "market perform" rating in a report on Monday, July 7th. Barclays boosted their price objective on shares of MGIC Investment from $26.00 to $27.00 and gave the company an "equal weight" rating in a report on Tuesday, July 8th. Finally, Compass Point reaffirmed a "neutral" rating and issued a $28.00 target price (up from $27.00) on shares of MGIC Investment in a research report on Friday, May 23rd. One research analyst has rated the stock with a sell rating and five have assigned a hold rating to the company. Based on data from MarketBeat.com, MGIC Investment presently has an average rating of "Hold" and a consensus target price of $26.67.

MGIC Investment Trading Down 1.0%

NYSE MTG traded down $0.27 during trading on Monday, hitting $27.25. The stock had a trading volume of 507,034 shares, compared to its average volume of 2,182,209. The company has a market capitalization of $6.28 billion, a PE ratio of 8.93, a PEG ratio of 2.02 and a beta of 0.90. The company has a quick ratio of 1.46, a current ratio of 1.46 and a debt-to-equity ratio of 0.13. The firm has a 50 day moving average price of $26.68 and a 200 day moving average price of $25.43. MGIC Investment Corporation has a twelve month low of $21.94 and a twelve month high of $28.67.

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

MGIC Investment declared that its Board of Directors has approved a share buyback program on Thursday, April 24th that authorizes the company to buyback $750.00 million in shares. This buyback authorization authorizes the insurance provider to purchase up to 12.5% of its shares through open market purchases. Shares buyback programs are typically an indication that the company's board believes its stock is undervalued.

MGIC Investment Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, August 21st. Stockholders of record on Thursday, August 7th will be given a dividend of $0.15 per share. This is a boost from MGIC Investment's previous quarterly dividend of $0.13. This represents a $0.60 dividend on an annualized basis and a dividend yield of 2.2%. The ex-dividend date of this dividend is Thursday, August 7th. MGIC Investment's dividend payout ratio is presently 19.67%.

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.